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FRM Part II · FRM Exam Part II · Introduction to Operational Risk and Resilience

Which element is most appropriate for the board and senior management to own under operational resilience principles?

The board and senior management should approve the critical operations, set or endorse impact tolerances, and ensure sufficient investment to stay within them. Day-to-day triage, scripting and rota selection are operational tasks delegated to management and technical teams rather than board responsibilities.

  1. AApproving the critical operations list, impact tolerances and the investment needed to remain within themCorrect
  2. BPerforming day-to-day incident ticket triage
  3. CWriting technical recovery scripts for each application
  4. DSelecting individual employees for backup rotas

Explanation

Governance responsibility sits with the board and senior management, who approve what is critical, how much disruption is tolerable and the resources required. Technical and operational tasks are delegated to management and staff.

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