Devastating Business Interruptions | SSCP Exam Preparation

Most Devastating Business Interruptions

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Question

Which of the following results in the most devastating business interruptions?

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A. B. C. D.

B.

Source: Veritas eLearning CD - Introducing Disaster Recovery Planning, Chapter 1

All of the others can be replaced or repaired.

Data that is lost and was not backed up, cannot be restored.

All of the options listed in the question can result in severe business interruptions, but the most devastating among them depends on the organization's operations, infrastructure, and contingency planning.

A. Loss of Hardware/Software: A loss of hardware or software can significantly impact an organization's operations. For example, if critical hardware, such as servers or network components, fails, it can result in the inability to process transactions, access critical data or applications, and communicate with customers or suppliers. If a business has no redundant hardware or disaster recovery plans, it can take significant time and resources to restore the environment to full functionality. However, the severity of the impact depends on the extent of the hardware and software loss and the organization's ability to recover from it.

B. Loss of Data: Data is a critical asset for any organization, and loss of data can lead to severe business interruptions. Data loss can occur due to various reasons such as system failures, cyber-attacks, human errors, or natural disasters. If an organization loses its critical data, it may not be able to continue its operations or may face regulatory, legal, and reputational consequences. Depending on the organization's data backup and recovery procedures, the recovery process may take significant time and effort, leading to business interruptions.

C. Loss of Communication Links: Communication links, such as network connectivity or internet connectivity, are critical for modern-day organizations. A loss of communication links can severely impact an organization's ability to communicate with its employees, customers, and suppliers. For example, if a company's communication links go down, its employees may not be able to access critical applications, email, or phone systems, leading to significant productivity loss. In addition, if a company cannot communicate with its customers or suppliers, it may not be able to conduct its operations, leading to severe business interruptions.

D. Loss of Applications: Applications are critical for an organization's operations, and a loss of applications can severely impact business operations. For example, if an organization's CRM or ERP system goes down, it may not be able to process orders, track inventory, or manage customer data. This can lead to significant revenue loss, decreased productivity, and customer dissatisfaction. Depending on the organization's application redundancy and disaster recovery plans, the recovery process may take significant time and effort, leading to business interruptions.

In conclusion, all of the options listed in the question can result in severe business interruptions. The most devastating among them depends on the organization's operations, infrastructure, and contingency planning. Therefore, it is critical for organizations to have a robust business continuity and disaster recovery plan that addresses all of these potential disruptions.