ARM ARM Business Continuity and Resilience 2 — Questions and Answers
Question 1: In business continuity planning, 'Recovery Point Objective' (RPO) refers to:
- The financial target for recovery spending
- The physical location where recovery operations occur
- The acceptable amount of data loss measured in time (Correct answer)
- The number of staff required at the recovery site
Correct answer: The acceptable amount of data loss measured in time
RPO defines the maximum age of data that must be recoverable after a disruption, determining how frequently backups must be performed.
Question 2: Which component of a business continuity program tests and validates the effectiveness of continuity plans?
- Business Impact Analysis
- Plan exercises and testing (Correct answer)
- Risk register development
- Insurance procurement
Correct answer: Plan exercises and testing
Regular plan exercises and testing — including tabletop exercises, simulations, and full drills — validate that continuity plans will work as intended during an actual disruption.
Question 3: Supply chain disruption is best categorized as which type of business continuity risk?
- Internal operational risk
- External dependency risk (Correct answer)
- Regulatory compliance risk
- Reputational risk only
Correct answer: External dependency risk
Supply chain disruptions arise from dependencies on external suppliers and partners, making them external dependency risks that affect business continuity.
Question 4: A 'warm site' in disaster recovery differs from a hot site in that it:
- Is located in a warmer climate region
- Requires some setup and activation time but has essential infrastructure already in place (Correct answer)
- Is a fully redundant facility ready for immediate use
- Is used exclusively for archiving records
Correct answer: Requires some setup and activation time but has essential infrastructure already in place
A warm site has basic infrastructure and systems in place but requires additional configuration and data loading before it can assume full operations.
Question 5: Crisis communication planning is critical to business continuity because it:
- Reduces the organization's tax liabilities
- Ensures stakeholders receive timely, accurate information during disruptions (Correct answer)
- Replaces the need for a formal BCP
- Is required only for publicly traded companies
Correct answer: Ensures stakeholders receive timely, accurate information during disruptions
Effective crisis communication maintains stakeholder trust and prevents misinformation from compounding the impact of a disruption.
Question 6: Which international standard provides guidance on business continuity management systems?
- ISO 9001
- ISO 14001
- ISO 31000
- ISO 22301 (Correct answer)
Correct answer: ISO 22301
ISO 22301 is the international standard specifically designed to specify requirements for a business continuity management system (BCMS).
ARM ARM Business Continuity and Resilience 2
In business continuity planning, 'Recovery Point Objective' (RPO) refers to: