easy · Frm Part 2 Operational Risk

A bank uses a cloud provider with two data centers in the same city to meet its high-availability requirements. From a systemic risk perspective, this architecture primarily fails to mitigate:

  1. Regional catastrophes or jurisdictional risks affecting that specific city or country.
  2. The risk of a software bug in the bank's application code.
  3. Hardware failure of a single server rack.
  4. Increases in the provider's electricity costs.

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