medium · Frm Part 2 Operational Risk
An operational risk manager identifies that a payments process has a Recovery Time Objective (RTO) of 4 hours and a Recovery Point Objective (RPO) of 15 minutes. The current IT architecture performs nightly backups and requires 24 hours to restore from the off-site facility.
Which statement best describes the risk status?
- The bank has effectively transferred this risk to the off-site storage provider, meeting Basel III operational resilience principles.
- The architecture meets the RPO through off-site storage but fails the RTO due to manual restoration delays.
- The architecture fails both resilience targets, creating significant exposure to both data loss and service downtime.
- The process is considered 'resilient' but not 'continuous,' as it can recover within a single business day.
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