The initial costs include the cost of initial setup, including membership, construction or other fees. Recurring operating costs include costs for maintaining and operating the facility, including rent, utilities, repair, and ongoing backup operations. Activation costs include costs involved in the actual use of the backup capability. This includes disaster notification fees, facility usage charges, overtime, transportation, and other costs.
66. When comparing alternative computer processing facilities, the major objective is to select the alternative with the:
a. Largest annualized profit
b. Largest annualized revenues
c. Largest incremental expenses
d. Smallest annualized cost
66. d. The major objective is to select the best alternative facility that meets the organization’s recovery needs. An annualized cost is obtained by multiplying the annual frequency with the expected dollar amount of cost. The product should be a small figure.
67. Which of the following statements is not true about contracts and agreements associated with computer backup facilities?
a. Small vendors do not need contracts due to their size.
b. Governmental organizations are not exempted from contract requirements.
c. Nothing should be taken for granted during contract negotiations.
d. All agreements should be in writing.
67. a. All vendors, regardless of their size, need written contracts for all customers, whether commercial or governmental. Nothing should be taken for granted, and all agreements should be in writing to avoid misunderstandings and performance problems.
68. All of the following are key stakeholders in the disaster recovery process except:
a. Employees
b. Customers
c. Suppliers
d. Public relations officers
68. d. A public relations (PR) officer is a company’s spokesperson and uses the media as a vehicle to consistently communicate and report to the public, including all stakeholders, during pre-crisis, interim, and post-crisis periods. Hence, the PR officer is a reporter, not a stakeholder. Examples of various media used for crisis notification include print, radio, television, telephone (voice mail and text messages), post office (regular mail), the Internet (for example, electronic mail and blogs), and press releases or conferences.
The other stakeholders (for example, employees, customers, suppliers, vendors, labor unions, investors, creditors, and regulators) have a vested interest in the positive and negative effects and outcomes, and are affected by a crisis situation, resulting from the disaster recovery process.
69. Which of the following is the most important consideration in locating an alternative computing facility during the development of a disaster recovery plan?
a. Close enough to become operational quickly
b. Unlikely to be affected by the same contingency issues as the primary facility
c. Close enough to serve its users
d. Convenient to airports and hotels
69. b. There are several considerations that should be reflected in the backup site location. The optimum facility location is (i) close enough to allow the backup function to become operational quickly, (ii) unlikely to be affected by the same contingency, (iii) close enough to serve its users, and (iv) convenient to airports, major highways, or train stations when located out of town.
70. Which of the following alternative computing backup facilities is intended to serve an organization that has sustained total destruction from a disaster?
a. Service bureaus
b. Hot sites
c. Cold sites
d. Reciprocal agreements
70. b. Hot sites are fully equipped computer centers. Some have fire protection and warning devices, telecommunications lines, intrusion detection systems, and physical security. These centers are equipped with computer hardware that is compatible with that of a large number of subscribing organizations. This type of facility is intended to serve an organization that has sustained total destruction and cannot defer computer services. The other three choices do not have this kind of support.
71. A full-scale testing of application systems cannot be accomplished in which of the following alternative computing backup facilities?
a. Shared contingency centers and hot sites
