medium · FRM Part 2 Operational Risk
A bank's 'Cloud Exit Plan' is criticized by regulators for being 'theoretical.'
What is the most likely reason for this criticism?
- The plan does not include a contractual right to terminate the vendor's service agreement.
- The bank has not yet begun migrating its core ledger systems onto a fully operational cloud platform.
- The plan relies on multi-cloud strategies that have never been tested in a live failover scenario.
- The cloud provider's historical uptime record already exceeds the bank's internal resilience benchmarks.
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