Incidents & continuity
Two agreed limits for a failure - how long a system may be down (RTO) and how much recent data may be lost (RPO).
Formal
The recovery time objective (RTO) is the longest a system or process may be unavailable before the harm becomes unacceptable. The recovery point objective (RPO) is the oldest point in time the data may be restored to, which sets how often a backup must be taken.
In plain English
If your phone dies, RTO is how long you can manage without one; RPO is how many days of photos you could stand to lose since your last copy.
In practice
A Danish web shop decides its order system needs an RTO of four hours and an RPO of fifteen minutes, so it copies orders to a second location every fifteen minutes and practises a switch-over twice a year.
Why it matters
The two numbers turn a vague wish to "be back quickly" into a clear target that decides how much to spend on backup and spare systems.