easy · FRM Part 2 Operational Risk
A bank is migrating its core ledger to a multi-cloud environment.
Which of the following 'exit strategies' is most consistent with the principles of operational resilience?
- A tested, rehearsed plan to migrate the core service to an alternative provider or back on-premises within the impact tolerance.
- Fully outsourcing the design and rehearsal of the exit plan itself to a fourth-party consultant to avoid internal bias.
- A simple contractual clause that lets the bank terminate the cloud provider's services upon giving 30 days' prior written notice.
- Ensuring the cloud provider maintains sufficient contractual 'bail-in' subordinated debt to survive a severe systemic financial crisis.
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