A reciprocal agreement is where two or more organizations mutually agree to provide facilities to the other if a disaster occurs. The organizations must have similiar hardware and software configurations. Reciprocal agreements are often not legally binding.
Reciprocal agreements are not contracts and cannot be enforced. You cannot force someone you have such an agreement with to provide processing to you.
Government regulators do not accept reciprocal agreements as valid disaster recovery sites.
Cold sites are empty computer rooms consisting only of environmental systems, such as air conditioning and raised floors, etc. They do not meet the requirements of most regulators and boards of directors that the disaster plan be tested at least annually.
Time Brokers promise to deliver processing time on other systems. They charge a fee, but cannot guaranty that processing will always be available, especially in areas that experienced multiple disasters.
With the exception of providing your own hot site, commercial hot sites provide the greatest protection. Most will allow you up to six weeks to restore your sites if you declare a disaster. They also permit an annual amount of time to test the Disaster Plan.
References: OIG CBK Business Continuity and Disaster Recovery Planning (pages 368 -369)
The following answers are incorrect: hot site. Is incorrect because you have a contract in place stating what services are to be provided. warm site. Is incorrect because you have a contract in place stating what services are to be provided. cold site. Is incorrect because you have a contract in place stating what services are to be provided.