Strategies, Review of Key Quizzes, and Practice Questions for Guaranteed
Success
Question 1
Which of the following statements is true regarding standards and regulations?
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 both standards and regulations.
Correct Answer: D) Auditors assess business continuity programs against both standards and
regulations.
Rationale: Regulations are mandatory requirements imposed by a governmental body.
Standards are sets of best practices that may be voluntary unless cited in a contract or
regulation. Auditors will assess a program's compliance with both applicable regulations and
any standards the entity has adopted.
Question 2
What is the primary 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 demonstrates leadership's support for the business continuity planning process.
D) It provides leadership a direction in which to make future decisions.
Correct Answer: C) It demonstrates leadership's support for the business continuity planning
process.
,Rationale: The policy statement is a formal declaration from senior leadership that authorizes
the business continuity program and communicates its importance, demonstrating
management commitment and providing the necessary authority for the program to succeed.
Question 3
What is the main objective of tracking and reporting on the business continuity program's
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.
Correct Answer: A) To report to leadership on the status of the business continuity program on
a regular basis.
Rationale: Regular progress reporting is essential for maintaining leadership support,
demonstrating the program's value, highlighting achievements, and identifying any
roadblocks that may require management intervention.
Question 4
When first establishing a business continuity program, what should its initial scope be?
A) The entire entity.
B) The IT / information systems department.
C) The financial department.
D) The most critical business units only.
,Correct Answer: A) The entire entity.
Rationale: To be effective, a business continuity program must consider the entire entity and
its interdependencies. While implementation may be phased, the overall scope should be
holistic to avoid creating silos and overlooking critical connections between departments.
Question 5
What needs to occur first when establishing a business continuity program?
A) Develop a detailed project plan.
B) Identify project objectives and risks.
C) Gain leadership commitment and sponsorship for the program.
D) Establish the framework of the project.
Correct Answer: C) Gain leadership commitment and sponsorship for the program.
Rationale: Without commitment and sponsorship from senior leadership, a business
continuity program will lack the necessary authority, funding, and resources to be successful.
This is the foundational first step.
Question 6
Shifting production from a disabled primary manufacturing site to a secondary company-owned
site is an example of:
A) Using excess inventory.
B) Utilizing third-party outsourcing.
C) Reducing production output.
D) Utilizing internal excess capacity.
Correct Answer: D) Utilizing internal excess capacity.
, Rationale: This is a recovery strategy that leverages a pre-existing, alternate facility that is also
owned by the entity and has the capacity to take on additional production work.
Question 7
A significant interruption in an entity's supply chain may directly prevent its ability to do what?
A) Keep employees safe during an earthquake.
B) Deliver its finished goods and services to customers.
C) Conduct a walk-through test of its BCP.
D) Create an emergency response plan.
Correct Answer: B) Deliver its finished goods and services to customers.
Rationale: The supply chain provides the necessary inputs (raw materials, components,
services) for an entity to create its products. A disruption to these inputs will halt production
and prevent the delivery of goods and services.
Question 8
Which of the following would be considered an external risk factor?
A) A disruption in the supply chain for goods and services.
B) A disgruntled employee.
C) Inadequate employee drug screening procedures.
D) A failure to enforce a clean desk policy.
Correct Answer: A) A disruption in the supply chain for goods and services.
Rationale: The supply chain consists of external entities and is largely outside of the
organization's direct control, posing an external risk. The other options are all internal risk
factors that can be managed by internal policies and controls.