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Difficulty: MediumBusiness Impact Analysis and Business Continuity Management

During a Business Impact Analysis (BIA) for a commercial bank's real-time fraud detection engine, the risk management team establishes two key operational constraints: transaction data loss must not exceed 15 minutes of activity, and the service must be fully operational within 2 hours following a disaster to avoid severe regulatory penalties. Which of the following metric assignments correctly aligns with these BIA findings?

  1. Recovery Point Objective (RPO) of 15 minutes and Recovery Time Objective (RTO) of 2 hoursAnswer
  2. B
    Recovery Time Objective (RTO) of 15 minutes and Recovery Point Objective (RPO) of 2 hours
  3. C
    Work Recovery Time (WRT) of 15 minutes and Maximum Tolerable Downtime (MTD) of 2 hours
  4. D
    Deterrent control boundary of 15 minutes and Corrective control limit of 2 hours

Answer

Recovery Point Objective (RPO) of 15 minutes and Recovery Time Objective (RTO) of 2 hours
The correct option accurately designates 15 minutes as the Recovery Point Objective (RPO)—the target time threshold for acceptable data loss—and 2 hours as the Recovery Time Objective (RTO)—the targeted window to restore operational capability.

Step-by-Step Solution

1
Identify the data loss threshold requirement
The requirement allows a maximum data loss threshold of 15 minutes of transaction data
Recovery Point Objective (RPO) measures the maximum acceptable amount of data loss expressed in time prior to an outage.
2
Identify the system recovery time requirement
The service must be restored within 2 hours of an outage occurrence
Recovery Time Objective (RTO) measures the maximum acceptable time system services can be offline following a disaster.
3
Map requirements to business continuity metrics
RPO = 15 minutes; RTO = 2 hours
Combining RPO for data loss tolerance and RTO for service outage duration accurately reflects the BIA findings.

Key Concept

Distinction between Recovery Point Objective (RPO) and Recovery Time Objective (RTO) in Business Impact Analysis
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Topics

Business Impact Analysis and Business Continuity Management

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