Business Continuity Questions and Valid
Correct Answers
Business Interruption Insurance answer - covers loss of income that a business suffers after a
disaster
Contingent Business Interruption Insurance answer - insurance that reimburses lost profits and
extra expenses resulting in supply chain interruption
extra expense insurance answer - provides funds for reasonable and necessary costs a business
may incur if business operations are interrupted
escalation answer - the process by which event related information is communicated upwards
through an organization's established chain of command
1. Which of the following statements is true?
a. Conforming to a standard is mandatory
b. Complying with a regulation is voluntary
c. Auditors do not assess business continuity programs against regulations
d. Auditors assess business continuity programs against standards and regulations answer - d
2. What is the value of a business continuity policy statement?
a. It forces middle management to comply with senior directives
b. It shows employees how to do their part in the planning process
c. It shows leadership's support for the business continuity planning process
d. It provides leadership a direction in which to make future decisions answer - c
,3. What is the objective of tracking program progress?
a. To report to leadership on the status of the business continuity program on a regular basis
b. To conduct meetings to ensure that all members of the entity share responsibility in the
project plan
c. To involve all internal personnel in developing and adjusting scope
d. To validate that the planning team is sticking to the project plan answer - a
4. What should be the initial scope of the business continuity program?
a. Entire entity
b. IT / information systems
c. Financial department
d. Critical business units answer - a
5. What needs to occur first in establishing a business continuity program?
a. Develop a detailed project plan
b. Identify project objectives and risks
c. Gain leadership commitment to program
d. Establish framework of project answer - c
6. Shifting production from one manufacturing site to another is an example of:
a. Using excess inventory
b. Utilizing excess capacity
c. Reducing production output
d. Prioritizing customer allocations answer - b
, 7. Supply chain interruptions may prevent an entity's ability to do what?
a. Keep employees safe
b. Deliver goods and services to customers
c. Do walk-through testing
d. Create emergency response plans answer - b
8. Which of the following would be considered an external risk factor?
a. Supply chain for goods and services
b. Disgruntled employees
c. Employee drug screening
d. Clean desk policy procedures answer - a
9. Which of the following would be considered a control?
a. Loss of access to facilities
b. A tornado
c. Lack of fire suppression systems
d. UPS/generators answer - d
10. Determining cyber threats to the entity is part of the:
a. Business continuity plan
b. Disaster recovery plan
c. Business impact analysis
d. Risk assessment answer - d
11. Which of the following is an objective of a business impact analysis?
a. To calculate the probability of disruptions to the entity
Correct Answers
Business Interruption Insurance answer - covers loss of income that a business suffers after a
disaster
Contingent Business Interruption Insurance answer - insurance that reimburses lost profits and
extra expenses resulting in supply chain interruption
extra expense insurance answer - provides funds for reasonable and necessary costs a business
may incur if business operations are interrupted
escalation answer - the process by which event related information is communicated upwards
through an organization's established chain of command
1. Which of the following statements is true?
a. Conforming to a standard is mandatory
b. Complying with a regulation is voluntary
c. Auditors do not assess business continuity programs against regulations
d. Auditors assess business continuity programs against standards and regulations answer - d
2. What is the value of a business continuity policy statement?
a. It forces middle management to comply with senior directives
b. It shows employees how to do their part in the planning process
c. It shows leadership's support for the business continuity planning process
d. It provides leadership a direction in which to make future decisions answer - c
,3. What is the objective of tracking program progress?
a. To report to leadership on the status of the business continuity program on a regular basis
b. To conduct meetings to ensure that all members of the entity share responsibility in the
project plan
c. To involve all internal personnel in developing and adjusting scope
d. To validate that the planning team is sticking to the project plan answer - a
4. What should be the initial scope of the business continuity program?
a. Entire entity
b. IT / information systems
c. Financial department
d. Critical business units answer - a
5. What needs to occur first in establishing a business continuity program?
a. Develop a detailed project plan
b. Identify project objectives and risks
c. Gain leadership commitment to program
d. Establish framework of project answer - c
6. Shifting production from one manufacturing site to another is an example of:
a. Using excess inventory
b. Utilizing excess capacity
c. Reducing production output
d. Prioritizing customer allocations answer - b
, 7. Supply chain interruptions may prevent an entity's ability to do what?
a. Keep employees safe
b. Deliver goods and services to customers
c. Do walk-through testing
d. Create emergency response plans answer - b
8. Which of the following would be considered an external risk factor?
a. Supply chain for goods and services
b. Disgruntled employees
c. Employee drug screening
d. Clean desk policy procedures answer - a
9. Which of the following would be considered a control?
a. Loss of access to facilities
b. A tornado
c. Lack of fire suppression systems
d. UPS/generators answer - d
10. Determining cyber threats to the entity is part of the:
a. Business continuity plan
b. Disaster recovery plan
c. Business impact analysis
d. Risk assessment answer - d
11. Which of the following is an objective of a business impact analysis?
a. To calculate the probability of disruptions to the entity
