ARM 400 EVALUATION PRACTICE QUESTIONS AND
ANSWERS SET A+
✔✔Basel III standards - ✔✔aim to strengthen the capital requirements of banks in an
attempt to guard against financial risks
✔✔business continuity management (BCM) - ✔✔multifaceted approach to risk
management. Uses emergency response, disaster recovery, and crisis management
✔✔Emergency response plans - ✔✔Address emergencies and follow written guidelines
to lessen the impact of events
✔✔Disaster Recovery - ✔✔Deals strictly with recovery after a crippling disaster and
pursue methods of resuming business functions
✔✔Crisis Management - ✔✔Call for action to before, during and after catastrophes with
a focus on saving lives, reducing property loses and conserving resources during
recovery
✔✔Emergency preparedness - ✔✔focuses on providing emergency supplies and
trained personnel to ensure the safety of both people and an organization's tangible
property and assets during and after catastrophes
✔✔four main areas addressed in a BCM plan: - ✔✔1. Physical locations, and how they
might be rendered useless
2. Operational capacity, such as loss of a supply chain or the inability of personnel to
report to work
3. Technology
4. Internal effects on the organization, such as fiscal issues
✔✔5 models of a BCP - ✔✔1. Active backup
2. Split Operations
, 3. Contingency
5. Prioritization
5. Risk - transfer
✔✔Active Back Up Model of BCP - ✔✔Establishing a second site that includes all of the
necessary production equiptment (staff may be relocated to the second site if
operations are disrupted at the primary site)
✔✔Split Operations Model of BCP - ✔✔Maintaining two or more active sites that are
geographically dispersed. (Capacity at each site would be sufficient to handle total
output in the event of a disruption at either site)
✔✔Contingency Model of BCP - ✔✔Developing an alternative way to maintain
production, perhaps using manual processes or contractors to perform the work
✔✔Prioritization Model of BCP - ✔✔Prioritizing which products to produce or which
customers to serve given the resource limitation imposed by the interruption
✔✔Risk- Transfer Model of BCP - ✔✔Purchasing business interruption insurance
✔✔5 Elements of a BCP Model - ✔✔1. Time Goal
2. Operational Goal
3. Resources Needed
4. Detailed tasks and procedures
5. Documentation
✔✔strategic redeployment plan (SRP) - ✔✔Determines how to resume operations in a
way that repairs an organization's reputation and ensures its recovery and survival
✔✔Examples of disruptions and crises that may require an SRP - ✔✔Product recall,
data breach, false accusations, loss of a senior leader, a financial crisis, and a natural
disaster.
✔✔4 Stages of SRP - ✔✔1. Emergency
2. Alternative Marketing
3. Contingency Production
4. Communication
✔✔Emergency stage is designed to accomplish these four objectives: - ✔✔1. Protect
People
2. Protect physical assets
3. Form a disaster recovery team
4. Protect reputation
ANSWERS SET A+
✔✔Basel III standards - ✔✔aim to strengthen the capital requirements of banks in an
attempt to guard against financial risks
✔✔business continuity management (BCM) - ✔✔multifaceted approach to risk
management. Uses emergency response, disaster recovery, and crisis management
✔✔Emergency response plans - ✔✔Address emergencies and follow written guidelines
to lessen the impact of events
✔✔Disaster Recovery - ✔✔Deals strictly with recovery after a crippling disaster and
pursue methods of resuming business functions
✔✔Crisis Management - ✔✔Call for action to before, during and after catastrophes with
a focus on saving lives, reducing property loses and conserving resources during
recovery
✔✔Emergency preparedness - ✔✔focuses on providing emergency supplies and
trained personnel to ensure the safety of both people and an organization's tangible
property and assets during and after catastrophes
✔✔four main areas addressed in a BCM plan: - ✔✔1. Physical locations, and how they
might be rendered useless
2. Operational capacity, such as loss of a supply chain or the inability of personnel to
report to work
3. Technology
4. Internal effects on the organization, such as fiscal issues
✔✔5 models of a BCP - ✔✔1. Active backup
2. Split Operations
, 3. Contingency
5. Prioritization
5. Risk - transfer
✔✔Active Back Up Model of BCP - ✔✔Establishing a second site that includes all of the
necessary production equiptment (staff may be relocated to the second site if
operations are disrupted at the primary site)
✔✔Split Operations Model of BCP - ✔✔Maintaining two or more active sites that are
geographically dispersed. (Capacity at each site would be sufficient to handle total
output in the event of a disruption at either site)
✔✔Contingency Model of BCP - ✔✔Developing an alternative way to maintain
production, perhaps using manual processes or contractors to perform the work
✔✔Prioritization Model of BCP - ✔✔Prioritizing which products to produce or which
customers to serve given the resource limitation imposed by the interruption
✔✔Risk- Transfer Model of BCP - ✔✔Purchasing business interruption insurance
✔✔5 Elements of a BCP Model - ✔✔1. Time Goal
2. Operational Goal
3. Resources Needed
4. Detailed tasks and procedures
5. Documentation
✔✔strategic redeployment plan (SRP) - ✔✔Determines how to resume operations in a
way that repairs an organization's reputation and ensures its recovery and survival
✔✔Examples of disruptions and crises that may require an SRP - ✔✔Product recall,
data breach, false accusations, loss of a senior leader, a financial crisis, and a natural
disaster.
✔✔4 Stages of SRP - ✔✔1. Emergency
2. Alternative Marketing
3. Contingency Production
4. Communication
✔✔Emergency stage is designed to accomplish these four objectives: - ✔✔1. Protect
People
2. Protect physical assets
3. Form a disaster recovery team
4. Protect reputation
