A financial services firm has a primary data center and a cold DR site 120 miles away. A risk assessment reveals that the maximum tolerable downtime (MTD) for the core banking application is 8 hours, but the DR plan requires 24 hours to restore from tape backups at the cold site. The business continuity manager must close this gap. Which action is the MOST effective immediate step?
A warm site with pre-staged hardware and replicated data can be brought online within the 8-hour MTD, reducing recovery time from 24 hours to a feasible window. The cold site's tape-based restore cannot meet the MTD, so upgrading to a warm site directly addresses the shortfall. This is the most effective immediate step because it aligns recovery capability with the defined MTD without over-investing in a fully mirrored hot site, which may be cost-prohibitive.
Why this answer
The core banking application's MTD is 8 hours, but the cold site requires 24 hours to restore. A warm site with pre-staged hardware and replicated data can be activated within the MTD, directly closing the gap. Increasing backup frequency addresses RPO, not RTO.
Reciprocal agreements are unreliable. Altering the MTD to fit current capabilities undermines the BIA's purpose and leaves the business exposed.
Exam trap
The trap here is confusing RPO with RTO and assuming that more frequent backups will speed up recovery, when in fact the cold site's manual rebuild process is the bottleneck.