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FRM Part II · FRM Exam Part II · Digital Resilience and Financial Stability: The Quest for Policy Tools in the Financial Sector

A major cloud provider used by many banks suffers a multi-day outage. Which crisis-coordination arrangement would most directly reduce the risk that authorities and firms act on inconsistent information during the event?

A pre-agreed communication protocol across authorities and industry, with designated contacts and joint playbooks tested in exercises, best ensures consistent information. Siloed supervisor-only contact, media reliance or waiting for root cause produce delayed or conflicting information during a systemic outage.

  1. AEach bank communicating with its own supervisor only, with no cross-border contact
  2. BA pre-agreed cross-authority and cross-industry communication protocol with designated contacts and joint playbooks, tested through exercisesCorrect
  3. CRelying on media reports to decide on responses
  4. DDelaying communication until root cause is fully established

Explanation

Crisis coordination depends on predefined contacts, shared situational awareness and rehearsed playbooks. Siloed communication and waiting for root cause create inconsistent or late information, and media reports are unreliable for decisions.

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