Series 79 practice questioneasyBusiness Continuity Planning
FINRA Rule 4370 requires every member firm to create and maintain a business continuity plan (BCP). Which of the following is a required element of the BCP?
- AA guarantee that the firm will never experience any operational disruption
- BA commitment to move all operations offshore in the event of a domestic emergency
- CA plan for how the firm will throw an annual holiday party during a natural disaster
- DProcedures for backing up and recovering critical business records and data✓ Correct answer
Explanation
Why D — Procedures for backing up and recovering critical business records and data
FINRA Rule 4370 mandates that member firms establish business continuity plans that address critical elements including data backup and recovery, mission-critical systems, alternate communications with customers and regulators, and succession planning. The plan must be reasonably designed to enable the firm to meet its obligations to customers in the event of a significant business disruption. Firms must review and update their BCPs at least annually or whenever a material change occurs.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 477+ Series 79 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Related Section 4 questions
- Under the Bank Secrecy Act and related regulations, which of the following is a requirement for broker-dealers…
- A managing director in the investment banking division is responsible for supervising a team of analysts and…
- An investment bank is engaged to advise on a leveraged buyout. During due diligence, the deal team discovers that the…
- Under FINRA Rule 3110, a broker-dealer must establish a supervisory system including written supervisory procedures. In…