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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?

Reciprocal agreement with another organization

Alternate processor in the same location

Alternate processor at another network node

Installation of duplex communication links

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.

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