Exam CISM topic 1 question 440 discussion

B. Reciprocal agreement With the wide use of Internet colocation centers, reciprocal sites have fallen out of favor. Still, they may be ideal for organizations with mainframe computers that are otherwise too expensive to deploy to a cold or warm site.

D. Cold site A cold site generally has the lowest periodic cost among the recovery approaches. A cold site is a type of disaster recovery facility that includes basic infrastructure such as power and communications, but does not include equipment, software, or data. It can be used as a temporary location for an organization to resume operations in the event of a disaster. Because a cold site does not include any active equipment or data, the costs associated with maintaining and updating the site are typically lower than other recovery approaches such as a redundant site or a shared contingency center.

I read the entire book, it’s not addressed. The following is a ChatGPT answer which explains the differences between reciprocal and cold site, costs, and risks. However, this still does not provide a definate answer to the question. But I am including it here to help others make a decision, find the information and make a decision. Cost and Risk Comparison: • Reciprocal Agreement: Lowest or no ongoing cost, but high risk due to dependency on a third party. • Cold Site: Also low periodic cost, but with more control over recovery since the facility is dedicated, albeit minimally equipped. A reciprocal agreement can be a cost-effective alternative to a cold site, but it requires strong collaboration, detailed agreements, and regular testing to ensure viability. It’s most suitable for organizations with limited budgets and less stringent recovery time objectives (RTOs)

in order of lower cost , Reciprocal agreement, Cold Site, warm Site and Hot Site

In a reciprocal agreement, two organizations agree to provide each other with reciprocal services in the event of a disaster or business disruption. This arrangement often involves minimal ongoing costs as compared to maintaining dedicated redundant sites or shared contingency centers. A cold site, which is essentially an unfurnished facility without computer systems, may have lower upfront costs but can incur higher costs during activation and recovery.

D. Cold AIO Peter H. Gregory Chapter 7: Incident Management Readiness 461 page Table 7-5 Relative Costs o Recovery Sites Hot $$$$ Warm $$$ Cold $$ Mobile $$$ to $$$$ Cloud $$ Reciprocal $$ to $$$$

Periodic cost is refering to the ongoing cost of maintainance not the initial cost to setup. If you look at the initial cost, a cold site will be more expensive than a reciprocal agreement. However, when you look at the ongoing periodic costs, a cold site is less expensive. A cold site is often less expensive than a reciprocal agreement. This is because a cold site's periodic costs primarily include facility maintenance, which tends to be lower compared to the costs associated with maintaining an active reciprocal agreement. Reciprocal agreements may involve regular testing, coordination, communication, and sometimes the need to provide resources to the partner organization. These ongoing operational activities can incur costs that exceed the maintenance costs of a cold site, which remains largely dormant until needed. As such, the correct answer here is D. Cold site.

Reciprocal agreement you dont even buy or rent a location

The correct answer is B. In a reciprocal agreement, two organizations with similar capabilities and processing capacities agree to provide support to one another in the event of an emergency. Reciprocal agreements are not considered very reliable. A reciprocal agreement is the least expensive as this relies solely on an arrangement between two organizations.

Cold site

a cold site is cheaper but not fast to deploy

Hot 0 to 24 hours $$$$ Warm 24 hours to 7 days $$$ Cold More than 7 days $$ Cloud 0to7days $$ Reciprocal 0to7days $$ to $$$$ Mobile 2 to 7 days $$$ to $$$$ Therefore Cold site still cheaper although reciprocal might be shared among 2-3 companies.

D. Cold site

Among the given options, a cold site (option D) generally has the lowest periodic cost. A cold site is an off-site facility that provides space and infrastructure for an organization to restore its IT systems in the event of a disaster. It typically lacks the necessary hardware, software, and data to operate the organization's systems. Cold site requires less initial investment and ongoing maintenance, it also has longer recovery times and typically requires more effort and time to bring the systems back online. However, in terms of periodic costs, a cold site generally has the lowest associated expenses. Reciprocal agreements (option B) involve agreements with another organization to share recovery resources and facilities. Shared contingency centers (option A) are facilities shared among multiple organizations to provide recovery capabilities. Both of these options often involve higher periodic costs due to the shared nature and ongoing maintenance requirements.

In general, the costs of a reciprocal agreement are lower than those of a cold site in the context of disaster recovery. According Chat AI