A Company Implements a Cold Site for Disaster Recovery Purposes

question 367

Multiple Choice

A company implements a cold site for disaster recovery purposes due to a risk of hurricanes at its headquarters location. Which of the following BEST describes why the company chose to use a cold site?

• A) Cold sites have fewer hurricanes than warm or hot sites.
• B) A hot or warm site would have a higher MTTR than a cold site
• C) Cold sites are the easiest to implement in the event of a disaster
• D) A hot or warm site would have higher setup and ongoing costs

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Definitions:

Asian Option

A type of option where the payoff depends on the average price of the underlying asset over a certain period.

Underlying Asset

The underlying security that determines the value of a derivative, including equities, fixed income, raw materials, or foreign exchange.

Payoff

The return or outcome received from an investment or action.

Convertible Bond

A type of bond that can be converted into a predetermined number of the issuing company's shares at certain times during its life, usually at the discretion of the bondholder.