Casualty Actuarial Society (CAS) Practice Exam

In the context of a business continuity management (BCM) plan, the primary focus is on ensuring that an organization can continue to operate and recover from disruptions. This involves assessments and strategies related to physical locations, internal organizational effects, and operational capacities, including how supply chains might be impacted and what operational resources are necessary to maintain continuity.

The primary goal of BCM is to prepare for and mitigate the impacts of interruptions, ensuring that essential functions can resume as quickly and smoothly as possible. This typically includes considerations around the physical infrastructure requirements and the operational capabilities needed after a disruption.

Employee salary adjustments, on the other hand, typically fall outside the scope of BCM. While salary matters are crucial for staff morale and retention, they are usually addressed through HR policies rather than being a direct component of a continuity plan. Thus, the adjustment of salaries during a disruption does not directly relate to maintaining business operations or recovering from incidents, which is why this area is not typically included in a BCM plan.