A financial institution that processes millions of transactions each day has a central communications processor (switch) for connecting to automated teller machines (ATMs). Which of the following would be the BEST contingency plan for the communications processor? 

Answer options:

A. Reciprocal agreement with another organization
B. Alternate processor in the same location
C. Alternate processor at another network node
D. Installation of duplex communication links

C

The unavailability of the central communications processor would disrupt all access to the banking network. This could be caused by an equipment, power or communications failure. Reciprocal agreements make an organization dependent on the other organization and raise privacy, competition and regulatory issues. Having an alternate processor in the same location resolves the equipment problem, but would not be effective if the failure was caused by environmental conditions (i.e., power disruption). The installation of duplex communication links would only be appropriate if the failure were limited to the communication link.