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FRM Part II · FRM Exam Part II · Risk Mitigation

A bank has a critical service with an impact tolerance of 6 hours. Scenario testing of a severe but plausible ransomware event yields these sequential recovery times: detection and decision to invoke the plan 1.5 hours, isolation and clean environment rebuild 3 hours, data restoration 2 hours, and validation 1 hour, with no parallelisation possible for the first three steps and validation overlapping the final 0.5 hour of data restoration. What is the correct assessment?

The total recovery time is 7.0 hours, breaching the 6-hour impact tolerance by 1 hour. Sequential steps sum to 6.5 hours, and validation adds only 0.5 hour beyond the overlap with data restoration. The firm must shorten recovery or invest in remediation.

  1. ATotal time 7.0 hours; tolerance breached by 1.0 hourCorrect
  2. BTotal time 7.5 hours; tolerance breached by 1.5 hours
  3. CTotal time 8.5 hours; tolerance breached by 2.5 hours
  4. DTotal time 6.0 hours; tolerance exactly met

Explanation

Sequential steps: 1.5 + 3 + 2 = 6.5 hours. Validation takes 1 hour but 0.5 hour overlaps restoration, adding only 0.5 hour: total 7.0 hours. This exceeds the 6-hour tolerance by 1.0 hour. Adding validation fully gives 7.5, ignoring the overlap. Summing all without overlap and mislabeling gives other wrong figures.

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