Key Elements of a Contingency Plan

D.

Because it is rarely possible or cost effective to eliminate all risks, an attempt is made to reduce risks to an acceptable level through the risk assessment process.

This process allows, from a set of potential risks (whether likely or not), to come up with a set of identified, possible risks.

The implementation of security controls allows reducing the identified risks to a smaller set of residual risks.

Because these residual risks represent the complete set of situations that could affect system performance, the scope of the contingency plan may be reduced to address only this decreased risk set.

As a result, the contingency plan can be narrowly focused, conserving resources while ensuring an effective system recovery capability.

Source: SWANSON, Marianne, & al., National Institute of Standards and Technology (NIST), NIST Special Publication 800-34, Contingency Planning Guide for Information Technology Systems, December 2001 (page 7).

A contingency plan is a proactive approach that organizations take to mitigate the impact of unforeseen events, such as disasters, emergencies, and incidents. A contingency plan should be designed to provide a framework for response, recovery, and restoration efforts in the event of an unexpected disruption. To effectively achieve this, the plan must address all possible risks that can be anticipated, identified, and residual, ensuring that the organization is well-prepared for any incident that may occur.

Here is a detailed explanation of the options provided:

A. Potential risks:

Potential risks refer to risks that have not yet occurred but have the potential to happen in the future. A contingency plan should take into account potential risks, as they can cause significant damage to an organization's operations, reputation, and financial stability. By identifying potential risks and developing strategies to mitigate them, organizations can reduce the likelihood and impact of a disruptive event.

B. Residual risks:

Residual risks are the risks that remain after implementing control measures to mitigate or reduce the likelihood of an incident. Contingency plans should also address residual risks, as these risks can still pose a significant threat to an organization's operations. The plan should include measures to manage and mitigate these residual risks and ensure that the organization can recover from any negative impacts.

C. Identified risks:

Identified risks refer to the risks that have been identified during the risk assessment process. The contingency plan should address all identified risks, as they are the most likely to occur and have a significant impact on the organization's operations. The plan should outline specific actions to take in response to each identified risk, including mitigation strategies and recovery efforts.

D. All answers are correct:

This answer is correct because a contingency plan should address all possible risks, including potential, residual, and identified risks. A comprehensive contingency plan that covers all risks can help ensure that the organization is well-prepared to respond, recover, and restore operations in the event of a disruptive incident.