medium · FRM Part 2 Operational Risk
A firm is choosing between a 'hot-failover' data center strategy and 'immutable, offline backups' to mitigate cyber risk.
Why is hot-failover often insufficient against a ransomware attack that corrupts data?
- Regulators explicitly forbid hot-failover for critical payments infrastructure.
- Hot-failover only protects against hardware failures, not software glitches.
- Hot-failover synchronously replicates the corruption to the secondary site.
- Hot-failover is significantly slower to restore than offline backups.
Sign up free to see the explanation and track your rank →
More FRM Part 2 Operational Risk practice
- Which of the following describes the 'One Big Loss' principle for heavy-tailed (subexponen
- In the Bow-Tie analysis framework, where do 'Preventive Controls' sit relative to the oper
- A customer consistently deposits $9,800 in cash at three dif… — This behavior is a classic
- The Standardized Measurement Approach (SMA) formula is composed of two primary factors: th
- What is the regulatory treatment for 'Boundary Events' regarding capital requirements unde
- In the Standardized Measurement Approach (SMA), the Business Indicator (BI) serves as a pr
- Under a proper governance framework, 'Model Limitations' must be:
- If the bank had a poor loss history (LC > BIC), what is the impact on its capital?