DRII CBCP Exam Questions and Answers: Business
Continuity Planning
Ensure survival of the entity - ANSWERNumber 1 reason of BC importance
Important concepts in establishing BC program - ANSWERLeadership must
buy in and commit before any BC tasks take place. It should be funded by
leadership and there should be a budget!
Budget requirements for the BC program - ANSWERThis is auditable
Steering Committee - ANSWER6-7 business leaders (representing different
business units) that will make decisions regarding BC
Who signs the business continuity policy statement
Budget - ANSWERThis item is similar to a BC policy statement
Legal and Regulatory requirements - ANSWERWhat should be presented to
leadership to effectively establish the need for Business Continuity
Management
Scope - ANSWERWhere you can and would put exclusions in the introduction
of the BC plan
Resilience - ANSWERThe adaptive capacity of an organization in a complex
and changing environment.
, Risk Management - ANSWERAcceptance/tolerance
Prevention/mitigation
Risk retention
Risk transfer
Enterprise Risk - ANSWERRisks associated with not only accidental losses, but
also financial, strategic, operational, and other risks
Operational Risk - ANSWERRisks associated with internal adequacies of an
organization or a breakdown of its controls, operations, or procedures
Business Continuity - ANSWERReducing the impacts that occur when there is
a failure in enterprise or operational risk management
Business Interruption Insurance - ANSWERprovides protection for the loss of
profits and continuing fixed expenses resulting from a break in commercial
activities (operational interruption).
Extra Expense Insurance - ANSWERPays for the extra expense of maintaining
operations after an accident to an insured item until normal operations can
be restored.
Pays for expenses over and above those that would have been incurred
during normal operation of the business.
Contingent Business Interruption Insurance (CBI) - ANSWERReimburses lost
profits and extra expenses resulting from an interruption of business at the
premises of a customer or supplier:
Continuity Planning
Ensure survival of the entity - ANSWERNumber 1 reason of BC importance
Important concepts in establishing BC program - ANSWERLeadership must
buy in and commit before any BC tasks take place. It should be funded by
leadership and there should be a budget!
Budget requirements for the BC program - ANSWERThis is auditable
Steering Committee - ANSWER6-7 business leaders (representing different
business units) that will make decisions regarding BC
Who signs the business continuity policy statement
Budget - ANSWERThis item is similar to a BC policy statement
Legal and Regulatory requirements - ANSWERWhat should be presented to
leadership to effectively establish the need for Business Continuity
Management
Scope - ANSWERWhere you can and would put exclusions in the introduction
of the BC plan
Resilience - ANSWERThe adaptive capacity of an organization in a complex
and changing environment.
, Risk Management - ANSWERAcceptance/tolerance
Prevention/mitigation
Risk retention
Risk transfer
Enterprise Risk - ANSWERRisks associated with not only accidental losses, but
also financial, strategic, operational, and other risks
Operational Risk - ANSWERRisks associated with internal adequacies of an
organization or a breakdown of its controls, operations, or procedures
Business Continuity - ANSWERReducing the impacts that occur when there is
a failure in enterprise or operational risk management
Business Interruption Insurance - ANSWERprovides protection for the loss of
profits and continuing fixed expenses resulting from a break in commercial
activities (operational interruption).
Extra Expense Insurance - ANSWERPays for the extra expense of maintaining
operations after an accident to an insured item until normal operations can
be restored.
Pays for expenses over and above those that would have been incurred
during normal operation of the business.
Contingent Business Interruption Insurance (CBI) - ANSWERReimburses lost
profits and extra expenses resulting from an interruption of business at the
premises of a customer or supplier:
