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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

Payment system A processes 40% of a country's retail payments. A cyber attack makes it unavailable for 6 hours. Banks' recovery time objective (RTO) for that service is 4 hours, and the authority's impact tolerance is 8 hours. Which statement is most accurate?

The 6-hour outage exceeded the 4-hour recovery time objective but stayed within the 8-hour impact tolerance. So there was an RTO breach without a tolerance breach, with two hours of headroom left, which still signals recovery weaknesses needing remediation.

  1. ABanks met their RTO and are therefore within tolerance
  2. BThe outage exceeded the banks' RTO but remained within the 8-hour impact tolerance, indicating a recovery objective breach without a tolerance breachCorrect
  3. CThe outage exceeded the impact tolerance by 2 hours
  4. DThe outage is irrelevant because it lasted under one day

Explanation

Outage of 6 hours exceeds the 4-hour RTO (by 2 hours) but is below the 8-hour tolerance (2 hours of headroom). Option A misreads the RTO. Option C reverses the comparison. Option D ignores the defined thresholds. The RTO breach still signals weak recovery capability worth remediation.

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