A bank failed to meet service-level agreements (SLA) with customers after suffering from a database failure of the transaction processing system (TPS) that resulted in delayed financial deposits. A regulatory agency overseeing the bank would like to determine if the cause of the delay was a material weakness. Which of the following documents is MOST relevant for the regulatory agency to review?
A Business Continuity Plan (BCP) outlines the procedures and protocols to ensure that critical business operations can continue in the event of a disruption. In this scenario, a BCP would show how the bank prepared for and responded to the database failure, detailing the steps taken to restore normal operations and prevent delays in financial deposits. This document would provide the regulatory agency with the most relevant information to evaluate whether the delay caused by the database failure was due to a material weakness in the bank's systems and controls.
A material weakness is a deficiency in internal control over financial reporting that could result in a significant misstatement of an entity’s financial statements. A regulatory agency overseeing the bank would want to review the documents that relate to the bank’s internal control over financial reporting and its ability to recover from the database failure. Based on the options given, the most relevant document for the regulatory agency to review is the Business Continuity Plan (BCP), which is a document that outlines how a business will continue operating during an unplanned disruption in service. The BCP would show how the bank prepared for and responded to the database failure, and what steps it took to restore normal operations and prevent further delays in financial deposits. The other documents are less relevant for the regulatory agency’s purpose, as they do not directly address the internal control over financial reporting or the recovery from the database failure. Therefore, the correct answer is A. Business Continuity Plan (BCP).
ChatGPT got this one right, I see
I think we should not over-complicate the question. The BIA shows the threats posed to the business critical processes. I think threats are quite synonym to material weakness. And although material is also a financial term, I don't think that is what CISSP intends to ask.
And even if a financial material weakness was meant, I still think we need the BIA, since the cause of the delay was asked.
B is correct
B. The BIA evaluates and documents critical IT systems and processes along with the potential impacts resulting from their disruption. It would outline the recovery time objectives, dependencies, and risks associated specifically with the transaction processing system. The key reasons are: +The BIA specifically analyzes the potential impacts of a disruption to the transaction processing system based on its classification as a critical IT system. +It would provide details on the estimated downtime impacts, recovery time objective, and dependencies associated with an TPS failure. +These details would allow regulators to assess if the actual delay was adequately planned for or represented a material gap in the bank's continuity provisions for a mission critical system. The business continuity plan focuses on response/recovery, -while the COOP is for government agencies. -ERP relates to integrated software rather than business impact.
Answer A) BCP This document will give evidence that they had contingencies for failure events so that the auditing agency can verify that this event was planned for and what was done to get it back online as quick as possible. They may look at the plan and say that not enough was done to mitigate the downtime ...or say that everything that could have been done, was done. The BIA will only give insight as the financial affects from failures.
100% correct.
B is correct. BCP outlines the procedures and protocols to ensure that critical business operations can continue in the event of a disruption. While the BCP may be relevant in terms of how the bank responded to the incident, it may not provide the regulatory agency with the detailed information required to determine if the incident constitutes a material weakness. BIA is a process that identifies and evaluates the potential impacts of an interruption to critical business operations. In this case, the database failure of TPS resulted in delayed financial deposits which impacted the bank's ability to meet SLA with its customers.
B. Business impact analysis (BIA) The Business Impact Analysis (BIA) is a key document that assesses the potential impact of disruptions, such as database failures or other incidents, on an organization's critical business processes. In this case, the BIA would provide insights into the criticality of the transaction processing system (TPS) and the financial deposit process, helping the regulatory agency determine if the delay in financial deposits resulted from a material weakness in the bank's operations.
COOP means Continuity of Operations, is not a Plan
What do you think the P in COOP stands for?
BIA - Along with determining the value of other assets, the BIA will also reveal the critical path of the organization; without knowing the critical path, it is impossible to properly plan BCDR efforts.
I think it's BIA because it says the agency is analyzing the "cause of the delay". BCP or COOP would not list out potential cause of delays
the answer is A. A includes b and c