ACCA Strategic Professional · Strategic Business Leader · Managing, monitoring and mitigating risk
Brightwater Utilities is preparing its continuity strategy for its billing system. It identifies that the system can be unavailable for at most 6 hours before regulatory penalties apply, and that it can tolerate losing no more than 30 minutes of transaction data. Which statement correctly interprets these two parameters?
The recovery time objective is 6 hours, the maximum tolerable downtime, and the recovery point objective is 30 minutes, the maximum tolerable data loss. Data must therefore be backed up or replicated at least every 30 minutes, so a daily backup would be inadequate.
- AThe recovery time objective is 30 minutes and the recovery point objective is 6 hours
- BThe recovery time objective is 6 hours and the recovery point objective is 30 minutes, so backups or replication must occur at least every 30 minutesCorrect
- CBoth parameters measure data loss, so one daily backup would satisfy them
- DBoth parameters measure downtime, so a standby site is unnecessary if staff can work manually
Explanation
The recovery time objective is the maximum tolerable downtime (6 hours). The recovery point objective is the maximum tolerable data loss measured in time (30 minutes), which requires backups or replication at least that frequently. Reversing them is the key error, and a daily backup would breach the 30-minute limit.
Did you get it right without looking?
One question tells you little. A timed set on Managing, monitoring and mitigating risk shows your real accuracy, how long you take and where you lose marks.
More Managing, monitoring and mitigating risk questions
- Marlow Freight's board wants to make sure that risk is managed day to day by those who run each depot, rather than being seen as a task for …
- Brightwater Energy plc's audit committee reviews its risk management. The risk process has been run by a risk team, but business unit heads …
- Lantern Foods operates a single factory that produces all of its chilled ready meals. The board is concerned that a fire could stop producti…
- Brindle Foods' board wants an independent assessment of whether its internal control system is operating effectively. The internal audit fun…
- Kestrel Retail has a minor risk that its store loyalty app will be briefly unavailable. Analysis shows low likelihood and low impact, and th…
- Marlow Bank has lent heavily to a property developer. The developer's sales have collapsed and it has told the bank that it will miss its ne…