Which item is a core requirement of a good business contingency plan?

Which item is a core requirement of a good business contingency plan?

• A. Recovery, accountability, compliance audits, and prevention
• B. Prevention, recovery, accountability, and compliance audits
• C. Prevention, accountability, and reporting only
• D. Prevention, recovery, and risk assessment

Answer: (B)

A strong business contingency plan hinges on four essential elements: prevention, recovery, accountability, and compliance audits. Prevention focuses on reducing the likelihood and impact of disruptions through safeguards and redundancy. Recovery outlines the steps to rapidly restore critical operations after an incident, minimizing downtime and losses. Accountability assigns clear roles and ownership so the plan is actually executed and responsibilities are tracked. Compliance audits provide regular checks to ensure the plan meets legal, regulatory, and internal standards, identifying gaps before they become problems and verifying ongoing effectiveness. Together, these four components create a resilient, well-governed plan that both reduces risk and ensures verifiable readiness. Options that omit any one of these elements—such as lacking audits, accountability, or recovery—fall short of providing a full, effective contingency strategy.

A strong business contingency plan hinges on four essential elements: prevention, recovery, accountability, and compliance audits. Prevention focuses on reducing the likelihood and impact of disruptions through safeguards and redundancy. Recovery outlines the steps to rapidly restore critical operations after an incident, minimizing downtime and losses. Accountability assigns clear roles and ownership so the plan is actually executed and responsibilities are tracked. Compliance audits provide regular checks to ensure the plan meets legal, regulatory, and internal standards, identifying gaps before they become problems and verifying ongoing effectiveness.

Together, these four components create a resilient, well-governed plan that both reduces risk and ensures verifiable readiness. Options that omit any one of these elements—such as lacking audits, accountability, or recovery—fall short of providing a full, effective contingency strategy.