BCP & Crisis Scenario Planning Flashcards
7 cards from real CRA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 BCP & Crisis Scenario Planning flashcards as text
A financial firm's BCP identifies that its trading platform must recover within 2 hours. After testing, actual recovery takes 5 hours. What is the appropriate next step?
Answer: Revise the recovery strategy to close the gap
When actual recovery time exceeds the RTO, the organization must improve its recovery strategy — not simply adjust the objective to match poor performance.
Which element of a crisis management plan addresses how the organization will maintain brand reputation during and after a disruptive event?
Answer: Communication and public relations strategy
The communication and public relations strategy within a crisis plan governs messaging to protect and restore organizational reputation.
During scenario planning, which technique involves assigning probabilities to multiple plausible future states to prepare for uncertainty?
Answer: Probabilistic scenario analysis
Probabilistic scenario analysis assigns likelihood estimates to different future scenarios, enabling risk-adjusted planning and resource allocation.
A business impact analysis (BIA) prioritizes recovery based primarily on:
Answer: Criticality of business functions and financial impact of disruption
A BIA ranks business functions by their criticality and the financial or operational impact their disruption would cause, driving recovery prioritization.
Which crisis scenario category involves a gradual, long-term threat that builds slowly and may be overlooked until it becomes a crisis?
Answer: Smoldering crisis
A smoldering crisis develops slowly over time and is often ignored until it erupts publicly, such as a product defect or compliance failure.
Under the FFIEC guidelines for US financial institutions, BCP programs must address which of the following as a primary component?
Answer: Business impact analysis and testing
FFIEC guidelines require financial institutions to conduct rigorous business impact analyses and regularly test their continuity plans to ensure operational resilience.
Which term describes the practice of maintaining critical business data in two or more geographically separate locations simultaneously?
Answer: Geo-redundancy
Geo-redundancy ensures that data and systems are replicated across geographically dispersed sites to protect against location-specific disasters.