Chap 3 Questions

What unit of measurement should be used to assign quantitative values to assets in the priority identification phase of the business impact assessment? A. Monetary B. Utility C. Importance D. Time

A. The quantitative portion of the priority identification should assign asset values in monetary units.

You are concerned about the risk that an avalanche poses to your $3 million shipping facility. Based on expert opinion, you determine that there is a 5 percent chance that an avalanche will occur each year. Experts advise you that an avalanche would completely destroy your building and require you to rebuild on the same land. Ninety percent of the $3 million value of the facility is attributed to the building and 10 percent is attributed to the land itself. What is the single loss expectancy of your shipping facility to avalanches? A. $3,000,000 B. $2,700,000 C. $270,000 D. $135,000

B. The SLE is the product of the AV and the EF. From the scenario, you know that the AV is $3,000,000 and the EF is 90 percent, based on that the same land can be used to rebuild the facility. This yields an SLE of $2,700,000.

What is the first step that individuals responsible for the development of a business continuity plan should perform? A. BCP team selection B. Business organization analysis C. Resource requirements analysis D. Legal and regulatory assessment

B. The business organization analysis helps the initial planners select appropriate BCP team members and then guides the overall BCP process.

Once the BCP team is selected, what should be the first item placed on the team's agenda? A. Business impact assessment B. Business organization analysis C. Resource requirements analysis D. Legal and regulatory assessment

B. The first task of the BCP team should be the review and validation of the business organization analysis initially performed by those individuals responsible for spearheading the BCP effort. This ensures that the initial effort, undertaken by a small group of individuals, reflects the beliefs of the entire BCP team.

What is the term used to describe the responsibility of a firm's officers and directors to ensure that adequate measures are in place to minimize the effect of a disaster on the organization's continued viability? A. Corporate responsibility B. Disaster requirement C. Due diligence D. Going concern responsibility

C. A firm's officers and directors are legally bound to exercise due diligence in con- ducting their activities. This concept creates a fiduciary responsibility on their part to ensure that adequate business continuity plans are in place.

In which business continuity planning task would you actually design procedures and mechanisms to mitigate risks deemed unacceptable by the BCP team? A. Strategy development B. Business impact assessment C. Provisions and processes D. Resource prioritization

C. In the provisions and processes phase, the BCP team actually designs the procedures and mechanisms to mitigate risks that were deemed unacceptable during the strategy development phase.

Which task of BCP bridges the gap between the business impact assessment and the continuity planning phases? A. Resource prioritization B. Likelihood assessment C. Strategy development D. Provisions and processes

C. The strategy development task bridges the gap between business impact assessment and continuity planning by analyzing the prioritized list of risks developed during the BIA and determining which risks will be addressed by the BCP.

Of the individuals listed, who would provide the best endorsement for a business continuity plan's statement of importance? A. Vice president of business operations B. Chief information officer C. Chief executive officer D. Business continuity manager

C. You should strive to have the highest‐ranking person possible sign the BCP's statement of importance. Of the choices given, the chief executive officer is the highest ranking.

Which resource should you protect first when designing continuity plan provisions and processes? A. Physical plant B. Infrastructure C. Financial D. People

D. The safety of human life must always be the paramount concern in business continuity planning. Be sure that your plan reflects this priority, especially in the written documentation that is disseminated to your organization's employees!