CAS-002 · Question #28
The Chief Executive Officer (CEO) has decided to outsource systems which are not core business functions; however, a recent review by the risk officer has indicated that core business functions are…
The correct answer is A. Business impact analysis. A Business Impact Analysis (BIA) identifies and prioritizes systems and processes based on their criticality to business operations. It quantifies the impact of disruption (in terms of time, money, and operational effect) and produces Recovery Time Objectives (RTOs) and…
Question
The Chief Executive Officer (CEO) has decided to outsource systems which are not core business functions; however, a recent review by the risk officer has indicated that core business functions are dependent on the outsourced systems. The risk officer has requested that the IT department calculates the priority of restoration for all systems and applications under the new business model. Which of the following is the BEST tool to achieve this?
Options
- ABusiness impact analysis
- BAnnualized loss expectancy analysis
- CTCO analysis
- DResidual risk and gap analysis
How the community answered
(31 responses)- A94% (29)
- B3% (1)
- C3% (1)
Explanation
A Business Impact Analysis (BIA) identifies and prioritizes systems and processes based on their criticality to business operations. It quantifies the impact of disruption (in terms of time, money, and operational effect) and produces Recovery Time Objectives (RTOs) and Recovery Point Objectives (RPOs), directly answering the question of restoration priority. Annualized Loss Expectancy (ALE) analysis (B) quantifies financial risk from specific threats but does not establish restoration priority order. Total Cost of Ownership (TCO) analysis (C) examines the full financial cost of owning a system over its life-useful for procurement decisions, not recovery prioritization. Residual risk and gap analysis (D) identifies remaining risk after controls are applied, not system restoration order.
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