Nordvik Region and Hansa Mutual: Conclusions for Two Organisations

All courses / AI Operations / Module 7 / Chapter 30

Learning objectives

After the lesson the participant can:

• State the answers to AIDR-0900 and AIDR-0950 and the evidence each rests on
• Explain the conditions under which a class may rise to Level 3 Bounded in each organisation
• Formulate the five board decisions for one's own organisation
• Draft a board paper outline with a register, gated milestones, indicators with misuse notes and risks with triggers

Key concepts

A conducted loop around a bought base

The answer for Nordvik Region: operations becomes a loop the Region owns at its centre and buys under terms at its edge, with an assistant at Level 0 Advisory moving at most to Level 1, runbooks at Level 2, at most one class at Level 3 and an observer on another provider.

Three conditions together

Nordvik Region's rule for raising a scripted runbook from Level 2 to Level 3 Bounded: the observer has caught seeded faults for that class within target, a stop drill has met its target, and every window in which the runbook runs has two evidenced holders of the conductor role.

A conditional answer in three parts

The answer for Hansa Mutual: neither rollback nor failover may be extended now; rollback may reach Level 3 for catalogued pairs after four quarters of seeded-fault catch rate at 0.90, a stop drill inside its 5-minute target and an unexhausted budget; failover rises one step as supervised failovers pass.

Five board decisions

Adopt the register as the measure of resilience, set the rule that a level rises only on evidence, fund independent verification and review capacity, hold providers to operational terms, and protect the craft and the people. The board approves the rule, not each level.

Indicators of the book's own claims

Eight indicators, such as Tier 1 services with a verified recoverability claim and the seeded-fault catch rate per quarter, each with a baseline, targets, a source outside the system measured and a misuse note, so that a year of records can contradict the thesis.

Interactive exercises

Do them here and get feedback at once. Choose a card and then where it belongs, or drag it.

Teaching plan

Discussion

1. The board does not approve a level; it approves the rule by which a level rises. What does that division of labour protect against?
2. The indicator for verified claims carries the misuse note of a scope narrowed until the test passes. How would a board notice that this had happened?
3. Hansa Mutual's risk is described as an agent that has behaved well for several quarters, an observer that has never been surprised and a board that has stopped asking. What would keep the board asking?

Written exercise

Self-test

Choose an answer to see whether it is right, or open the answer below each question.

1. What can Nordvik Region prove about the recovery of its Tier 1 services at the date of the report, 2029-03-31?

   1. That all four are recoverable within their objectives, on the design documents
   2. That the portal is recoverable, on the failover test of October 2027
   3. Nothing at Tier 1; the plan sets the dates on which that changes
   4. That two of four are verified, on tests run in the first quarter of 2029
   Show the answer

   C. Nothing at Tier 1; the plan sets the dates on which that changes
   The answer to AIDR-0900 says that what the Region can prove about recovery is, today, nothing at Tier 1. The indicator baseline is 0 of 4 verified, and no sentence about recovery goes into a board paper that the register does not support.

2. On what trigger may Hansa Mutual raise rollback to Level 3 Bounded for catalogued pairs?

   1. A seeded-fault catch rate of 0.90 for four quarters, a stop drill inside 5 minutes and an unexhausted budget
   2. A vote of the risk committee at the review of 2029-03-31
   3. One quarter without a customer-visible incident on the claims core
   4. A passing dark day in the night window with two evidenced holders
   Show the answer

   A. A seeded-fault catch rate of 0.90 for four quarters, a stop drill inside 5 minutes and an unexhausted budget
   The conditional answer sets the trigger of trend T05: four quarters of catch rate at 0.90 from OBS-HM-0001, the stop drill inside its 5-minute target and a budget not exhausted, so the decision cannot be taken before the review after 2029-09-30.

3. Which of these is one of the five decisions that go to each board?

   1. Approve each change of level for each action class individually
   2. Select the model family used by the operations agents
   3. Replace the on-call rota with a managed provider within twelve months
   4. Hold providers to operational terms
   Show the answer

   D. Hold providers to operational terms
   D4 is to hold providers to operational terms: notice of change, visibility of the provider's AI, a right to test and a stop. The board sets the rule that a level rises only on evidence and does not approve each level.