Which of the following best describes the use of backups and failover in CLM disaster recovery?

• A. Backups are optional, and failover is rarely tested.
• B. Failover is performed manually once a year only.
• C. DR plans are only for large enterprises and not needed here.
• D. Regular backups, tested disaster recovery plans, and automated failover to redundant environments.

Answer: (D)

Regular, tested backups along with a well-practiced disaster recovery plan and automated failover to a redundant environment are essential for CLM systems. Regular backups ensure you can restore contract data, metadata, and configurations if something goes wrong. Testing those backups and the DR plan validates that you can actually recover within the time and data loss thresholds your organization requires (RTO and RPO). Automated failover to a standby, redundant environment minimizes downtime and reduces the chance of human error during a disruption, keeping contract workflows and integrations available.

The other options propose unsafe or impractical practices: backups being optional and failover rarely tested isn’t sufficient to protect data or meet availability needs; manual failover only once a year is too slow for most disruptions; and DR plans being only for large enterprises ignores risk and the need for continuity across organizations of all sizes.