Certified Internal Auditor (CIA) Part 3: Business Knowledge for Internal Auditing — Question 245

Which of the following best describes the benefit of an organization adopting a business continuity and disaster recovery plan for responding to natural disasters?

Answer options

• A. It prevents economic impact to the organization.
• B. It enables the organization to predict when a natural disaster will occur.
• C. It reduces the likelihood that events will disrupt operating activities.
• D. It eliminates the threat to the organization.

Correct answer: C

Explanation

The correct answer, C, highlights that a business continuity and disaster recovery plan is designed to reduce the chances of disruptions to operations. Option A is incorrect because while such plans can mitigate financial impact, they do not completely prevent it. Option B is not accurate as these plans do not provide predictive capabilities regarding natural disasters. Option D is misleading because no plan can entirely eliminate threats.