Practice Test Geeks(BCM) Business Continuity Management Certification Practice Test
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Risk and Business Impact Analysis Flashcards

7 cards from real BCM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Risk and Business Impact Analysis flashcards as text

  1. Which BIA metric measures the maximum amount of data loss an organization can tolerate after a disruption?

    Answer: Recovery Point Objective (RPO)

    RPO defines the point in time to which data must be recovered, representing the maximum acceptable data loss.

  2. During a BIA, a process owner states that their function can tolerate no more than 4 hours of downtime before significant financial losses occur. This threshold is best described as the:

    Answer: Maximum Tolerable Downtime

    Maximum Tolerable Downtime (MTD) is the longest period a business function can be unavailable before the disruption causes unacceptable consequences.

  3. Which risk assessment technique assigns probability and impact values on a numerical scale to calculate a composite risk score?

    Answer: Quantitative risk analysis

    Quantitative risk analysis uses numerical values for probability and impact to calculate measurable risk scores such as Annual Loss Expectancy (ALE).

  4. A BIA reveals that a payroll processing system has an MTD of 72 hours. The BCM team should set the RTO:

    Answer: Less than the MTD to ensure recovery before critical impact

    The RTO must be set less than the MTD so that recovery occurs before the organization reaches unacceptable impact levels.

  5. What is the primary purpose of a threat and vulnerability assessment in the context of BCM risk analysis?

    Answer: To identify potential sources of disruption and organizational weaknesses

    A threat and vulnerability assessment identifies what could cause disruption (threats) and where the organization is exposed (vulnerabilities) to prioritize risk treatment.

  6. Which formula correctly expresses Annual Loss Expectancy (ALE) in quantitative risk analysis?

    Answer: ALE = Single Loss Expectancy × Annualized Rate of Occurrence

    ALE = SLE × ARO, where SLE is the loss from a single incident and ARO is how often the event is expected per year.

  7. In a BIA interview, a department head says their function has a 'low' impact if unavailable for one day but 'critical' impact after three days. This escalating impact profile is called:

    Answer: Time-sensitive impact scaling

    Time-sensitive impact scaling describes how the severity of disruption consequences increases over time, informing MTD and recovery prioritization.