easy · Frm Part 2 Operational Risk
A bank's 'impact tolerance' for its mobile banking service is set at '4 hours of downtime'. If a vendor outage is projected to last 12 hours, the bank MUST:
- Immediately sue the vendor for breach of contract.
- Delete the mobile banking application to avoid any further risk.
- Invest in remediation, such as alternative processing paths or redundant vendors, to bridge the 8-hour gap.
- Raise its impact tolerance to 12 hours to match the reality.
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