| The creation of a Business Continuity Plan involves | | | | that affect business continuity. Even temporary |
| developing a reaction strategy for how an | | | | failure of power, security or information systems |
| organisation will respond to disaster. This disaster | | | | can wreak havoc on an organisation. Barclays |
| may occur through accidents, natural catastrophe | | | | Bank recently demonstrated this, when a faulty |
| such as earthquake or intentional attacks such as | | | | disc array prevented customers in the South of |
| hacking or terrorism. | | | | England accessing their accounts via ATMs or |
| In plain English, business continuity is how your | | | | through online banking portals. Clearly this indicates |
| organisation will maintain its operations in an | | | | how even minor difficulties demonstrate a |
| emergency. A Business Continuity Plan (BCP) lays | | | | potential weakness in business continuity planning. |
| out the steps an organisation will take to ensure | | | | Of course, it’s not only the Financial Services |
| emergency preparedness, crisis management and | | | | sector that needs to put in place robust plans for |
| disaster recovery. | | | | managing disaster. Organisations of all sizes should |
| Nowhere is BCP more important than within the | | | | plan for emergencies and devise a strategy for |
| Financial Services sector. It is a regulatory | | | | interim management and continued operation |
| requirement of the Financial Services Authority | | | | when unforeseen circumstances arrive. |
| (FSA) that organisations that fall under the | | | | When constructing a Business Continuity Plan for |
| FSA’s regulations have rigorous and robust | | | | your organisation, you should: |
| plans to ensure business continuity during times of | | | | Identify any potential disasters/emergencies |
| crisis. Organisations must consider the factors and | | | | crises |
| steps required to prepare for any type of | | | | Verify how you intend to minimise risk of the |
| disaster, and maintain compliance with FSA | | | | disaster occurring |
| regulations, even during an emergency incident. | | | | Plan your reaction if a disaster occurs |
| Most recently, the Financial Services Authority | | | | Test your Business Continuity Plan regularly. |
| called upon UK organisations to test their business | | | | Vulnerable areas that should be included in your |
| continuity planning in the light of the Swine Flu | | | | BCP include: People, Buildings, Systems and |
| outbreak. In 2006, the FSA carried out an | | | | Processes, Partnerships, Suppliers and Customers. |
| exercise to test the possible impact of a flu | | | | As businesses become increasingly dependent |
| pandemic upon the financial services industry. It | | | | upon technology and regulatory requirements |
| found that almost 50% of the UK’s financial | | | | tighten, it’s clear that business continuity |
| services workforce would be absent if a flu | | | | planning becomes a necessary factor of doing |
| pandemic swept the nation. | | | | business, rather than just an additional extra. Since |
| Clearly, this would strenuously affect the capacity | | | | 1 in 5 businesses experience a major disruption |
| of financial institutions to carry out their | | | | every year, those organisations that do not |
| operations. Companies across the UK have rapidly | | | | prepare a business continuity plan face the |
| responded to the need for expansion to their | | | | possibility they may cease trading as a result of a |
| current business continuity plans by including | | | | disaster. |
| preparedness for a viral pandemic. | | | | Is that a risk you’re willing to take? |
| But it doesn’t need to be major emergencies | | | | |