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. What distinguishes a Maximum Tolerable Period of Disruption (MTPD) from a Recovery Time Objective (RTO)?

    Answer: MTPD is the absolute limit before unacceptable impact; RTO is the target time to restore the function

    MTPD (equivalent to MTD) is determined by the business and represents the absolute failure point, while RTO is the operational target that must fall within the MTPD.

  2. A BCM analyst calculates that a server failure has an Exposure Factor of 40% and the asset value is $500,000. What is the Single Loss Expectancy (SLE)?

    Answer: $200,000

    SLE = Asset Value × Exposure Factor = $500,000 × 0.40 = $200,000.

  3. Which type of impact is most commonly measured first in a BIA because it provides objective, comparable data across business units?

    Answer: Financial impact

    Financial impact is typically quantified first in a BIA because it offers a consistent, measurable baseline for comparing the severity of disruptions across departments.

  4. An organization updates its BIA after a major restructuring that added three new business units. This update practice reflects which BCM principle?

    Answer: Change management integration

    Integrating BIA reviews into the change management process ensures that structural changes are reflected in the continuity program before a disruption occurs.

  5. During a risk workshop, a facilitator asks participants to independently submit risk estimates before group discussion to avoid groupthink. This technique is called:

    Answer: Delphi technique

    The Delphi technique collects anonymous expert opinions in rounds, reducing groupthink and anchoring bias in risk estimation.

  6. A BIA finds that a logistics function can tolerate 24 hours of downtime (MTD=24h) but currently has no recovery capability. The residual risk in this scenario is best described as:

    Answer: High because recovery capability does not meet the MTD requirement

    When no recovery capability exists to meet the MTD, the organization faces unacceptable residual risk that must be addressed through a recovery strategy.

  7. Which scenario best illustrates a 'cascading failure' risk in a BIA?

    Answer: A power outage disables the data center, which halts order processing, which delays shipping, which triggers customer chargebacks

    Cascading failures occur when one disruption triggers successive failures across interconnected systems, compounding the overall business impact.