FRM Part II · FRM Exam Part II · Introduction to Operational Risk and Resilience
Which activity most clearly demonstrates the 'learning and adapting' element of operational resilience after a significant outage?
A post-incident review that finds root causes and feeds lessons back into controls, recovery plans and testing shows learning and adapting. Merely restoring service and closing the ticket does not improve future resilience.
- AClosing the incident ticket once service is restored
- BConducting a post-incident review to identify root causes and feeding the lessons into changes to controls, plans and testingCorrect
- CReplacing the incident management team
- DReducing the frequency of scenario testing to limit disruption
Explanation
Learning requires analysing root causes and embedding lessons into controls, response plans and future tests. Closing a ticket only records restoration, and reducing testing or changing staff does not generate improvement.
Did you get it right without looking?
One question tells you little. A timed set on Introduction to Operational Risk and Resilience shows your real accuracy, how long you take and where you lose marks.
More Introduction to Operational Risk and Resilience questions
- A bank's risk team reviews losses from a flood that destroyed a branch's premises and equipment. Which Basel event type is this, and which i…
- A bank's scenario analysis for a severe payment-system outage estimates a frequency of one event every 20 years. Experts estimate the loss i…
- A risk manager notes that the SMA ILM uses a bank's ten-year average annual operational losses above a threshold. Which statement best descr…
- A bank's operational loss data show 40 events in a year. Of these, 10 are boundary events with market risk, and the bank's policy counts bou…
- A bank's fraud team discovers that a branch employee created fictitious customer accounts and diverted funds into them over two years. Under…
- Under the Basel III finalised framework, which approach is the only one banks use to calculate minimum regulatory capital for operational ri…