FRM Part II · FRM Exam Part II · Risk Mitigation
A bank's payments platform supports a critical business service. Management states that the service must be restored within 4 hours of a disruption, and that no more than 15 minutes of transaction data may be lost. Which pair of metrics do these two statements correspond to?
The 4-hour restoration target is the recovery time objective and the 15-minute data-loss limit is the recovery point objective. RTO measures how fast service returns; RPO measures how far back data may be lost. The other options swap or misapply these definitions.
- ARTO of 4 hours and RPO of 15 minutesCorrect
- BRPO of 4 hours and RTO of 15 minutes
- CMaximum tolerable outage of 15 minutes and RTO of 4 hours
- DImpact tolerance of 15 minutes and RPO of 4 hours
Explanation
The recovery time objective (RTO) is the target time to restore a service, here 4 hours. The recovery point objective (RPO) is the maximum acceptable data loss measured in time, here 15 minutes. Option B reverses the two definitions.
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