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:
- Regional catastrophes or jurisdictional risks affecting that specific city or country.
- The risk of an isolated software bug in the bank's own application code, unrelated to the vendor.
- Hardware failure of a single server rack within one of the two data centers.
- Increases in the cloud provider's electricity costs and monthly operating overhead.
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