The two levels of costs are pre-event and event costs. Pre-

event costs are incurred in either implementing risk miti-

gation strategies or allocating of resources (including

human and financial) and capital expenditure to develop-

ing the necessary infrastructure for the BCP recovery strat-

egy. These costs may include, for example:

Information technology

— Hot site-Fully operational computer center,

including data and voice communications

— Alternate LAN server-LAN server fully config-

ured, ready to be shipped and installed at the same

site or alternate site

— Physical separation of telecommunications net-

work devices (previously centralized) to reduce

the likelihood of a single point of failure

— Establishment of service level agreements with

BCP recovery company (i.e., hot, warm, or cold

sites and mobile).