ARM Business Continuity and Resilience Flashcards

What is the FIRST step in developing a business continuity program?

Answer: Conducting a Business Impact Analysis (BIA)

The BIA must be conducted first to identify critical business functions and prioritize recovery efforts before developing specific continuity strategies.

A company's 'Maximum Tolerable Period of Disruption' (MTPD) refers to:

Answer: The maximum time a business function can be disrupted before it causes irreversible harm

MTPD establishes the outer boundary for acceptable downtime beyond which consequences become catastrophic or irreversible.

Effective supply chain resilience strategies most commonly include:

Answer: Diversifying suppliers, maintaining safety stock, and building alternative sourcing arrangements

Supply chain resilience requires redundancy through supplier diversification, buffer inventory, and pre-established alternative sourcing to withstand disruptions.

Which of the following is an example of a 'single point of failure' in business operations?

Answer: Relying on one key employee whose departure would halt critical operations

A single point of failure is any element whose failure alone can halt an entire system or process, such as an irreplaceable key person.

Business interruption insurance in the context of business continuity primarily covers:

Answer: Lost income and ongoing expenses when operations are disrupted by a covered event

Business interruption insurance replaces lost revenue and covers fixed operating expenses during the period when normal operations are suspended due to a covered loss.

In ARM studies, organizational resilience integrates business continuity with:

Answer: Risk management, crisis management, and adaptive capacity

True organizational resilience combines business continuity with broader risk management, crisis response capabilities, and the adaptive capacity to thrive through disruption.