CRM Business Continuity and Crisis Management 2

Question 1

What does Recovery Time Objective (RTO) measure in business continuity planning?

Accepted Answer

The maximum tolerable time to restore a business function after a disruption

Answer

RTO defines the maximum acceptable duration of time within which a business process must be restored after a disruption to avoid unacceptable consequences.

Question 2

A 'cold site' in disaster recovery is best defined as:

Accepted Answer

A leased facility with basic infrastructure but no pre-installed equipment or data

Answer

A cold site provides only basic facilities such as power, space, and connectivity, with no pre-installed equipment, making it the least expensive but slowest recovery option.

Question 3

What is the primary goal of a crisis communication plan?

Accepted Answer

To ensure timely, accurate, and consistent information reaches all stakeholders

Answer

A crisis communication plan ensures that accurate, consistent messages are delivered to all stakeholders—employees, customers, media, and regulators—in a timely manner.

Question 4

What is 'Maximum Tolerable Downtime' (MTD) in business continuity planning?

Accepted Answer

The longest period a critical function can be unavailable before causing catastrophic harm to the organization

Answer

MTD represents the absolute maximum time a critical business function can be disrupted before the organization suffers irreversible damage or cannot recover.

Question 5

In the Business Continuity Management (BCM) lifecycle, which activity typically comes first?

Accepted Answer

Conducting a Business Impact Analysis and risk assessment

Answer

The BCM lifecycle begins with understanding the organization through a Business Impact Analysis and risk assessment, which informs all subsequent strategy and planning decisions.

CRM - Certified Risk Manager Practice Test

CRM - Certified Risk Manager Practice Test

CRM Business Continuity and Crisis Management 2