Final answer:
The worst-case recovery time objective for Synergy Hydroelectric, considering the maximum acceptable loss of 20,000 transactions and an average recording rate of 10,000 transactions per hour, is 2 hours (Option B), which covers the recovery of operations and the allowable data loss.
Step-by-step explanation:
The scenario presented involves understanding the concept of a recovery time objective (RTO), which is a critical metric in business continuity planning. The RTO represents the time target for recovering data and resuming business operations after a disruption. Synergy Hydroelectric's accounting department has determined that in the event of a system failure, they can accept a loss of a maximum of 20,000 transactions. Given that they record an average of 10,000 transactions per hour, the loss of 20,000 transactions corresponds to two hours worth of data. The firm's RTO is 60 minutes, which is the time by which they aim to recover after a disruption.
Since the firm records 10,000 transactions per hour and does not want to lose more than 20,000 transactions, the worst-case recovery time, which encompasses both the recovery of operations and the maximum acceptable data loss, would logically be double the RTO, equating to 2 hours. This is because, during two hours, 20,000 transactions would have been recorded, which is the maximum acceptable loss as per the cost-benefit analysis conducted by the managers. Consequently, option B) 2 hours is the correct answer.