FRM Part II · FRM Exam Part II · Guidance on Managing Outsourcing Risk
A bank's SLA with a cloud provider guarantees 99.9% monthly availability for a critical trading-support service. Assuming a 30-day month (43,200 minutes), what is the maximum downtime allowed in a month before the SLA is breached?
The maximum monthly downtime is 43.2 minutes. A 99.9% availability guarantee permits 0.1% unavailability, and 0.1% of 43,200 minutes in a 30-day month equals 43.2 minutes. Any outage beyond that breaches the SLA and may trigger service credits.
- A4.32 minutes
- B43.2 minutesCorrect
- C432 minutes
- D14.4 minutes
Explanation
Allowed unavailability is 0.1% of 43,200 minutes = 43.2 minutes. Check: 43,200 x 0.999 = 43,156.8 minutes of uptime, leaving 43.2 minutes. 4.32 minutes corresponds to 99.99%, a decimal-place error. 432 minutes corresponds to 99%.
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