A regional bank picks a cold site solely because rent is cheapest, even though the building sits in the same floodplain as headquarters. What site-selection principle is violated?
Select an answer to reveal the explanation.
Short Explanation
Cheap rent in the same flood bowl as HQ is a discount on shared doom. Alternate sites exist to dodge the same regional punch that hits primary. Price matters—just not more than surviving the river.
Full Explanation
Geographic diversity is a core criterion for recovery site selection. A low-cost site that shares flood, earthquake, or storm exposure with the primary location can fail in the same regional event. Organizations should weigh catastrophe profiles, access routes, and regional dependencies alongside cost when choosing cold, warm, or hot alternatives.