FRM Part II · FRM Exam Part II · Risk Reporting
A bank wants its operational risk reports to support an assessment of resilience for critical operations. Which metric is most directly useful for this purpose?
Restoration time for a critical service compared with its impact tolerance in scenario testing is the most useful metric. It directly measures whether the bank can recover critical operations within acceptable limits, which is the core of operational resilience, unlike training counts, advertising spend or branch numbers.
- ATime taken to restore a critical service compared with its defined impact tolerance during scenario testsCorrect
- BTotal number of staff trained on the code of conduct
- CAnnual advertising spend on the bank's brand
- DNumber of branches opened during the year
Explanation
Resilience concerns the ability to deliver critical operations through disruption within tolerance. Comparing restoration times in tests against the impact tolerance directly measures this. The other options are unrelated to the ability to withstand and recover from disruption.
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