1.2 Solutions Based on Business Continuity and Operational Sustainability (for Instance RPO, ROI, CAPEX/OPEX Cost Analysis, and Risk/reward) 400-007 Practice Questions (Page 1)

Questions 1–5

1. 1foundation · easy

   What is the primary purpose of business continuity planning (BCP) in an organization?

   • ATo ensure that critical business functions can continue or be restored quickly during a disruption
   • BTo eliminate all risks to the organization's IT infrastructure
   • CTo replace the need for disaster recovery planning
   • DTo reduce the cost of IT operations during normal business hours
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2. 2application · medium

   A manufacturing company is developing a business continuity plan. The plan must ensure that the production line can resume within 4 hours of a disruption and that the loss of the last 30 minutes of production data is acceptable. The company has identified a key risk: a fire in the main production facility. Which of the following is the most critical first step in the business continuity planning process?

   • APurchase a backup generator to ensure power is available during a disruption.
   • BConduct a business impact analysis (BIA) to identify critical processes and their recovery requirements.
   • CImmediately implement a data replication solution to meet the 30-minute RPO.
   • DTrain all employees on emergency evacuation procedures.
   Reveal Solution Discussion Select an answer first
4. 3foundation · easy

   What does the Recovery Point Objective (RPO) define?

   • AThe cost of recovering lost data
   • BThe maximum acceptable downtime after a disruption
   • CThe maximum acceptable amount of data loss measured in time
   • DThe minimum amount of data that must be backed up
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5. 4expert · hard

   A media streaming company is designing its disaster recovery strategy. The company's revenue model depends on high availability, and its brand is sensitive to any service interruption. The CTO proposes a synchronous replication solution with an RPO of zero and an RTO of under 1 minute, which costs $2 million per year. The CFO argues that the probability of a regional outage is 2% per year, and the estimated revenue loss from a 1-hour outage is $500,000. The CTO's proposal is best described as:

   • AA necessary investment because the company's brand is sensitive to any outage, and the cost of brand damage is not quantifiable.
   • BAn over-investment in risk mitigation, as the expected annual loss of $10,000 is significantly lower than the $2 million annual cost of the solution.
   • CA reasonable investment because the RPO of zero and RTO of under 1 minute are industry best practices for streaming services.
   • DA justified investment because the brand damage from any outage is incalculable and must be avoided at all costs.
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6. 5foundation · easy

   What does a risk/reward trade-off analysis in business continuity primarily evaluate?

   • AThe technical feasibility of implementing a solution
   • BWhether the cost of mitigation is justified by the potential savings from avoiding the risk
   • CThe speed of recovery versus the amount of data loss
   • DThe number of risks that can be eliminated
   Reveal Solution Discussion Select an answer first