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In the context of financial risk management, banks often establish impact tolerances as part of their operational resilience strategies. These tolerances define the maximum level of disruption the bank can withstand in its critical business services without causing severe harm to its operations, clients, or broader financial system. What is one potential benefit for a bank in establishing such an impact tolerance?
A
It will enhance the bank's ability to identify and limit concentration risk.
B
It will accurately estimate the severity of a potential disruption to an operational process and the amount of downtime that would result.
C
It will help the bank optimize its allocation of resources to its most important business services.
D
It will prevent failures of critical operational processes and the systems that support these processes.