What type of analysis supports recovery planning in ORM?

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The type of analysis that supports recovery planning in Operational Risk Management (ORM) is business impact analysis. This analysis is crucial as it helps organizations understand the potential effects of disruptions on their operations. By identifying critical business functions and the impact of their downtime, organizations can develop effective recovery strategies and prioritize resources for the most essential areas.

Business impact analysis serves as a foundation for recovery planning, enabling businesses to anticipate the consequences of operational failures and to formulate plans that minimize potential losses. It typically examines the resources required to maintain essential operations and outlines recovery strategies, ensuring that the organization can regain its functionality within an acceptable timeframe following a disruption. The insight provided by this analysis helps in decision-making processes regarding risk mitigation and recovery efforts, making it an integral component of an ORM framework.

In contrast, while financial analysis, market analysis, and employee satisfaction analysis can provide valuable insights into an organization's overall health and performance, they do not specifically focus on the implications of operational disruptions or the continuity of business functions in the way that business impact analysis does.

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