Which of the following is an example of business continuity?

Prepare for the CPFO Risk Assessment Exam. Study with flashcards and multiple choice questions, all with detailed hints and explanations. Ensure exam success by understanding key concepts and principles!

Business continuity refers to the strategies and processes that ensure an organization can continue to operate during and after a disruptive event. Such events can include natural disasters, cyber-attacks, or any situation that threatens normal business operations.

Data backups and recovery are essential components of a business continuity plan. They ensure that an organization can restore critical data and resume operations relatively quickly after a disruption. By regularly backing up data and having a robust recovery plan in place, an organization minimizes downtime and the loss of vital information, allowing for continued service delivery and operational integrity. This is why data backups and recovery serve as a clear example of business continuity practices.

While contract management and inventory management are important managerial functions, they do not inherently focus on the continuity of business operations in the face of disruptions. These practices are more aligned with overall business management rather than specifically addressing how to maintain operations during adverse conditions. Therefore, the emphasis on data backups in the context of essential business continuity strategies makes this answer particularly relevant and accurate.

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