Back up the folder where BAO (at least CDP and REPO) is installed. If SSO is being used, back up that folder as well.
Is there any fail over mechanism or any other way instead of backing up folders manually.
What is the server data that is being referred to here? Data stored in CDP? Data stored in repository?
You can always have 2 CDPs to make sure the data is replicated and failover is supported out of the box. But, you definitely want to back up both CDP's installation folders.
As far as repository, you can have a cold standby repository as long as you have an external database to store the content. There is no automatic failover. In any case, I recommend backing up folders containing repository servers.