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Business Continuity Professional Exam Prep #2

Category - CBCP #2

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At what point in the business continuity process is it prudent to review any existing leasehold agreements?
  1. When developing the actual business continuity plan
  2. Prior to developing a business continuity program budget
  3. During the business impact analysis
  4. During the periodic review of the business continuity plan
  5. When performing the risk assessment
Explanation
Answer: e - When performing the risk assessment, it is prudent to review any existing leasehold improvements.

You must consider physical protection, when identifying controls and safeguards to avoid and mitigate the effect of the loss potential. This includes security and access controls, tenant insurance, and any and all lease legal agreements.

Key Takeaway: Leasehold agreements contain rights and responsibilities for both lessors and lessees. It is critical to understand any covenants in the lease pertaining to damage, as it is a key component of the risk assessment.

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