Statement: Long periods of service interruption due to the lack of disaster recovery system will can cause financial losses and reputation issues to the business. Is this statement True or False?

• A. Not Applicable
• B. Cannot Be Determined
• C. True
• D. False

Answer: (C)

The statement is true: long service interruptions without a disaster recovery system lead to financial losses and reputational damage. Disaster recovery helps restore critical IT services quickly after a disruption, reducing downtime. When there is no DR plan, outages last longer, so revenue drops from lost sales, backlogged orders, and potential penalties. Recovery costs may also rise as systems are brought back online. Beyond money, reliability matters to customers and partners; repeated or prolonged outages erode trust, push customers to competitors, and harm the company’s brand. While exact figures can vary, the directional impact—financial loss and damaged reputation from extended downtime without a disaster recovery setup—is a well-established consequence.