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The Ultimate Guide To Business Continuity Management for Banks and Credit Unions

The Ultimate Guide To Business Continuity Management for Banks and Credit Unions

The Ultimate Guide To Business Continuity Management for Banks and Credit Unions

Regulatory Requirements

  • How to Develop a BCMP

Pandemic Planning and Business Continuity Strategy

The importance of integrating vendor management into the bcmp, importance of exercises and tests when updating the bcmp, automating the planning process.

business continuity plan for banks

By Tom Hinkel

In November 2019, the Federal Financial Institution Examination Council (FFIEC) updated its BCP IT Examination Handbook and expanded its focus from Business Continuity Planning (BCP) to Business Continuity Management (BCM) . The change makes sense, because “planning” is only one part of the business continuity process. Business continuity management encompasses the entire process by integrating resilience, incident response, crisis management, third-party integration, disaster recovery , and business process continuity.

In the financial industry, community banks and credit unions are required to develop compliant business continuity plans that identify business processes along with their interdependencies that provide resilience to, and recovery from, all potential threats to the financial institution. BCM is designed to help organizations, regardless of their size, location or activity, minimize the impact of disruptions of any kind, natural or man-made, including cyber.

The new BCM guidance represents the first major update since 2015 and calls for all “entities” to rethink their approach to business continuity and be prepared to make appropriate plan revisions to meet these expectations. Entities are defined as depository financial institutions, nonbank financial institutions, bank holding companies, and third-party service providers. The use of this term is significant, as it essentially pulls all interdependencies into the planning process.

With so much at stake, it is important for financial institutions to understand the BCM process and the key requirements to develop the business continuity plan:

  • Regulatory requirements relevant to a compliant BCM Program
  • How to develop the business continuity management plan (BCMP)
  • Pandemic planning and business continuity strategy
  • The importance of integrating vendor management into the BCMP
  • Steps to effectively update and test the plan
  • The benefits of automating the BCM process

  To comply with regulatory expectations, financial institutions are required to focus on an enterprise-wide, process-oriented approach that considers technology, business operations, testing, and communication strategies that are critical to business continuity management for the entire organization, not just the information technology department. Regulations make it clear that institutions need to plan to perform their critical business functions, even if technology may be impaired or unavailable.

Auditors and examiners are also scrutinizing business continuity plans to verify that the institution’s methodology and plan structure closely adhere to the 2019 regulatory guidance. A key change in the guidance is the increased focus on resilience. Resilience is the ability to prepare for—and adapt to—changing conditions and both withstand and recover rapidly from disruptions, whether that includes deliberate attacks, accidents or naturally occurring threats or incidents. Two keys for understanding resiliency are the terms “withstand” and “recover”, with an emphasis on withstanding adverse events . In the past, business continuity planning has been focused more on recovery, but now the FFIEC has placed a heavy focus on resiliency. The ultimate goal is for financial institutions to be more proactive and minimize having to implement traditional recovery measures down the road. When going through the BCM process, resilience must be included from the very beginning of the process to successfully meet regulatory expectations.

How to Develop a BCMP – What to Include in the Plan

  It’s safe to say that most banks and credit unions have some sort of a BCMP in place, yet many struggle with determining what to include in the plan to ensure it is both recoverable and compliant. With the new changes to the guidance, many community banks and credit unions may also be wondering what specific changes they’ll need to make to meet these new expectations.

While each financial institution has a unique operating model based on its services, demographic profile, organizational processes, and technologies, the first step when drafting or updating the BCMP is to have a thorough understanding of all the functions and processes that make up those operations. This process, which we refer to as Enterprise Modeling , involves identifying all departments or functional units, with all associated processes and functions (including all internal and external interdependencies), and determining the team owners and members responsible for each department. Having representatives from each department take an active role in the planning process ensures the technologies and responsibilities for each area are accurately represented. This also helps the financial institution develop a more accurate assessment of its recovery time objectives and actual recovery capabilities. It is not realistic to have a single individual with all the knowledge and unique skill set required to put together a comprehensive BCMP.

A plan should consist of all the steps required to ensure key products and services remain available to customers or members. The BCMP consists of five phases including risk management (Business Impact Analysis, Risk/Threat Assessment); continuity strategies (Interdependency Resilience, Continuity and Recovery); training and testing (aka Exercises); maintenance and improvement; and board reporting.

Furthermore, the BCMP should be a “live” document that keeps pace with any changes in infrastructure, strategy, technology, and human resources. As soon as a plan is board approved, it should be tested, and a new draft plan should be initiated. At any point in time you should have both an approved plan, as well as a live draft to accommodate changes.

  In the past, financial institutions were required to have a separate pandemic plan, but the new FFIEC guidance instead expects community banks and credit unions to assess and manage pandemic risk alongside all other possible disasters. This means the BCM plan is the pandemic plan, and financial institutions must analyze the impact a pandemic can have on the organization; determine recovery time objectives (RTOs); and build out a recovery plan.

As we’ve all learned, pandemic planning is very different from natural disasters, technical disasters, malicious acts, or terrorist events because the impact of a pandemic is much more difficult to determine due to the differences in scale and duration. Pandemics also directly impact financial institution and third-party employees rather than targeting infrastructure or technology-based interdependencies. Cross training and succession planning should be a key part of the pandemic planning process to ensure operations can continue even if key individuals are unavailable.

FFIEC guidance states that the financial institution’s BCMP should include five key elements to address the unique challenges posed by a pandemic event:

  • A preventive program including monitoring of potential outbreaks; educating employees; communicating and coordinating with critical service providers and suppliers; and providing appropriate hygiene training and tools to employees
  • A documented strategy that provides for scaling the institution’s pandemic efforts to align with the current six-stage CDC framework
  • A comprehensive framework of facilities, systems, or procedures that provide the organization the capability to continue its critical operations in the event that large numbers of the institution’s staff are unavailable for prolonged periods
  • A testing program to ensure that the institution’s pandemic planning practices and capabilities are effective and will allow critical operations to continue
  • An oversight program to ensure ongoing review and updates to the pandemic plan

The vast majority of banks and credit unions today rely on third-party service providers, or vendors, to conduct business on a day-to-day basis. When financial institutions outsource key functions to a service provider, it creates a reliance on that third-party and exposes the institution to the risk of not being able to resume operations within pre-defined recovery time objectives in the event of a disruption. The FFIEC now expects critical third-party providers to be active participants in the BCM program, and it’s likely that regulators will require financial institutions to have a detailed understanding of the resilience capabilities of their core/technology service providers, cloud providers and others moving forward. When creating a BCMP, financial institutions have to account for all interdependent third-party relationships and identify the potential consequences a third-party disruption might have on its operations.

The criticality of the product or service the vendor provides is directly related to the criticality of the dependent process it supports, as identified by the business impact analysis. Some questions financial institutions should consider include:

  • How important is this vendor to what we do?
  • If they fail, how many of our dependent services would be negatively impacted?
  • How challenging would it be to replace this vendor?

Vendor criticality is expressed in terms of Recovery Time Objectives (RTOs) , and each bank or credit union determines and assigns the same RTOs to the third-party vendor as they have to the underlying process they support. In other words, if you’ve identified a two-day recovery time objective for a particular process, any underlying vendors will also inherit that same two-day RTO. In the event that the vendor cannot match your RTO (validated by testing), you must have a contingency plan in place such as alternative procedures or providers to compensate for the gap.

Successfully integrating vendor management and business continuity planning is essential for financial institutions to truly understand their actual recovery capabilities by validating whether or not their third-party providers “have sufficient recovery capabilities” to meet your recovery objectives.

  Exercises and tests are important parts of the process, and in fact, the BCMP is not complete until the plan has been thoroughly tested. The new handbook makes an important distinction between exercises and tests in the BCMP process, defining an exercise as “a task or activity involving people and processes that is designed to validate one or more aspects of the BCMP or related procedures.” On the other hand, a test is often performed “to verify the quality, performance, or reliability of system resilience in an operational environment.” The handbook emphasizes the importance of both exercises and tests to demonstrate resilience and recovery capabilities.

Exercises and testing verify the effectiveness of the plan by validating all recovery time objectives; helps train the team on what to do in a real-life scenario; and identifies areas where the plan needs to be strengthened. In addition, examiners are also verifying that a BCMP has been tested, and the financial institution is able to execute the plan if and when the need arises. Because the financial industry is considered part of the nation’s critical infrastructure, testing, exercises, and training will continue to be a focus going forward.

Every test should start with a realistic scenario drawn from the top threats as identified by the risk management phase of the planning process. Top threats are those determined to have both high impact and high probability ratings. While initial testing of a plan can be relatively straightforward, a bank or credit union should strive to extend the scope and severity of the exercise with each consecutive test by making the tests consecutively more complex and including different individuals. Conducting the very same test with the same participants every year will not satisfy examiners nor will it give your management the assurance they need.

In addition to the senior management and information security roles defined in a plan, the testing team should include key department heads with detailed knowledge of the processes and functions impacted by the scenario. Tests should cover the steps departmental managers must take to complete functions manually or in an alternate way. In addition, all departmental specialists should be included in the exercise and testing program. There are two reasons for that, the first is so they are familiar with alternate procedures in emergency scenarios, the second is to make sure you have backups, or successors, to your primary recovery resources. Succession planning is another hot button item with examiners now because of the pandemic.

While regulators require proof of exercises and testing annually, more frequent testing is indicated whenever a previous test uncovered significant gaps in the plan, or if there are significant internal changes to processes or infrastructure or personnel.

To help streamline this time-consuming process, banks and credit unions can automate repetitive portions of business continuity planning. Automating these activities eliminates the need to update cumbersome spreadsheets and manually copy/paste information from various reports and previous assessments. The 2019 guidance requires a number of changes to your existing plan, some subtle and some significant.

An automated BCP solution will also help guide banks and credit unions through the entire BCMP process, assuring that all required elements are included as they are necessitated by regulatory guidance changes. Automating the planning process makes it easier and much less time-consuming to perform annual plan updates by allowing static portions of the plan to carry forward, while incorporating changes wherever necessary. Any automated solution should also allow you to identify all material plan changes from year-to-year, so management and board approval is easier.

  Business Continuity Management is a critical process for banks and credit unions regardless of size and location, and the plan is central to that effort. To streamline the planning process, financial institutions should integrate business continuity into all business decisions; conduct periodic reviews of the plan; and perform regular testing. Everyone in the organization — from the tellers to the Board — should understand the importance of business continuity planning and how his or her unique role fits into the financial institution’s overall business continuity strategy.

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BCP in Banking — 12 Steps to Disaster-Proof Operations

How will a disaster impact your business? What financial hit will your organization suffer? And how quickly can you recover? Take steps now with business continuity planning.

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  • 4 Phases of Crisis Management
  • Build a BCP for Stability and Resilience
  • Improving Your Business Continuity Plan

Financial institutions, including banks, credit unions, accounting firms, and loan offices, are all vulnerable to security breaches, unforeseen emergencies, and operational disruptions. With millions—or potentially billions—of dollars at risk, there is a critical need for business continuity planning. Well-detailed and regularly tested BCP in banking can help you protect customers and employees while maintaining critical operations.

The Four Phases of Crisis Management for Banks

Business continuity planning, or BCP, in banking must address all the threats a financial institution faces. Severe weather events like hurricanes, tornadoes, blizzards, and wildfires can disrupt physical locations. Digital threats and cyberattacks put customer privacy and critical information systems at risk. Operational disruptions, economic downturns, regulatory changes, and the impacts of the pandemic further underscore the need for an effective business continuity plan for banks.

Crisis management follows four stages: mitigation, preparedness, response, and recovery.

A business continuity plan for financial institutions focuses on the risk mitigation and preparedness stages. You will review your exposures, threats, and risks as you learn how to prepare for them.

Download Our Business Continuity Checklist

Achieve stability and resilience with a bcp in banking.

The need for robust business continuity strategies has taken center stage in an era marked by anticipated and unforeseen disasters. But beyond the planning, everyone from frontline employees to senior management must be on board with the plan and understand their parts in supporting business continuity. These twelve steps to BCP in banking will help you prepare, beginning with a thorough evaluation of your risks and leading to training and implementation once a version of the plan is complete.

For a more comprehensive, guided business continuity checklist, download our resource here . 

1. Complete a business impact analysis 

How will a disaster impact your business? What financial hit will your organization suffer? And how long will business recovery take? The first step in BCP in banking is to address some critical questions with a business impact analysis. You’ll want to thoroughly understand what a disaster means in the context of operational resilience .

Here are some key actions of your business impact assessment:

  • Define critical business functions : This is important for prioritizing your financial institution’s resources and determining the costs associated with downtime. If your organization is open to the public (such as a bank), you’ll want to consider the impact on customers and proactive solutions for mitigation.
  • Calculate downtime costs : Depending on the specific nature of the emergency, operations could be halted for hours, days, or even weeks—like with catastrophic damage due to a major hurricane. It’s essential to evaluate a range of financial consequences.
  • Determine legal impact : With any disaster, there are inevitable regulatory considerations to address. Customer and data privacy will be a top concern for financial institutions’ business continuity. If you relocate any facilities, you’re required to notify the organization’s primary federal regulator.

You’ll also want to review each department’s vital needs for your business impact analysis . You might ask: Does my organization have the necessary specialized equipment/software? How will I notify my people if internet access is unavailable? And what communication system will I need to facilitate recovery?

2. Complete a risk assessment

One essential component of business continuity management is understanding the risks unique to your industry and specific to your organization. Threats can come in various forms: malicious activity targeting your employees and customers, a technical disruption, or a natural disaster beyond your control. Establishing a scale of anticipated threats helps evaluate the severity of the risk. A low-impact threat might be a temporary power outage, whereas an active shooter scenario or wildfire could have serious business repercussions.

The risk or threat assessment should consider the following:

  • Internal and external danger to personnel, facilities, and service providers
  • Business disruption due to natural, technical, and human threats
  • Vulnerability of critical processes and vital data/records
  • Probability of occurrence (use a rating system)
  • Impact of a scenario on your people, business, and customers

Effective business continuity plans should consider your facilities’ geographic locations. Close proximity to a flood plain or critical infrastructures (e.g., airports, highways, nuclear power plants) can affect your organization’s risks.

3. Inventory internal resources 

Identify the resources you need to support operations during an emergency, including personnel, information technology and infrastructure, operational resources, and procedural resources.

Categorizing those items and alternative solutions will ensure you have the people, processes, and equipment needed to continue operations despite a disaster. 

4. Create an emergency communications strategy 

The first part of an emergency communications plan is detecting potential threats. Consider using a threat intelligence solution to stay on top of emerging critical events so you can prioritize time-sensitive notifications to employees and other stakeholders. 

When your threat intelligence is integrated with your employee communication software , you can ensure safety, security, and business continuity. Look for a communication solution that meets the following criteria:

  • An intuitive interface: This feature will make it easier for anyone to send out critical information.
  • Two-way messaging: This lets your people reply with real-time status updates. 
  • Wellness checks: You can conduct quick surveys of employees to check if they’re safe or need assistance.
  • Geofencing: This location-based feature allows you to group recipients based on who might be in close proximity to (or in the path of) a disaster
  • Always available: A disaster can occur any day, at any hour. Your communications software should always be prepared. 

With the right supportive software, it’s easier to establish a strong employee communications plan to keep your workers up to date and on task, even during disaster response and recovery. 

5. Develop your backup plan 

In financial services, the recovery point objective–the point, as measured in time, where data loss exceeds what is acceptable–is very short. Your core data underpins dozens of processes and tasks, particularly in today’s real-time tracking environment where using even slightly outdated data is impractical.

A diagram of recovery point objective and recovery time objective on a timeline

In the case of banks and financial institutions, data backup should occur at frequent intervals, ideally every few minutes. Automated tools support this seamless process without disrupting business operations. Employing both incremental backups—which capture only newly created or changed data every few minutes—and full backups every few hours helps eliminate the risk of data loss.

Finally, evaluate your offsite data storage. If a natural disaster takes out your building, you’ll be glad to have a backup server system at an alternate site in an unaffected location. Also, establish a backup power source and arrangements for recovery teams in case of situations where primary work locations are inaccessible. 

6. Document the business continuity strategy 

In this step of the BCP process, you’ll produce a written business continuity plan to disseminate across your organization. Based on the insights you’ve gained from your business impact and risk assessments, you should have a wealth of information to consolidate into a single document.

Within your disaster recovery plan, clearly define roles and responsibilities and contact information for key stakeholders/emergency team members. This action will ensure you’re ready to notify your people, especially if you have an intuitive employee notification system in place.

Preparing for worst-case scenarios is also a best practice that will help your business weather even unforeseen disasters. You should also have contingency plans in place for common problems:

  • Key personnel are not available
  • Facilities are inaccessible
  • Equipment malfunctions
  • Software is corrupted
  • Service providers are unavailable
  • Utilities (power/communications) are down
  • Critical documentation is not available

A note of caution: If your business has more than one location, you’ll need to prepare for potential damage/disruption to multiple facilities.

The more you can plan for, the better you’ll be able to weather various disasters and maintain business continuity.

7. Share the plan

You don’t need to flood employees with information about your disaster response plan. Giving them too many details can overwhelm them. It can also make retention challenging, and they may not be prepared during an emotionally charged disaster. Focus on

  • Communication: First and foremost, make sure employees know how to receive emergency messages and how to respond. 
  • Safety protocols: Clearly establish evacuation routes, fire drill procedures , and assembly points to get people to safety. 
  • Leadership: Employees should know who to go to in an emergency, whether that’s a team leader, supervisor, or designated safety captain.  
  • Critical tasks: Finally, notify anyone responsible for critical tasks during a crisis, making sure their roles are clear. Be sure to also notify people who are designated as backups in case the primary team members are unavailable.

Keeping it simple will allow your employees to retain this information during a disaster. Of course, all members of your safety team should have complete copies of the plan and should also participate in the next stage. 

8. Complete informal testing 

Test your business continuity plan at least once a year to ensure it covers all the bases and contingencies to avoid operational disruptions. But it’s a good idea to test segments of your plan more often with informal drills and tabletop exercises . You can conduct these exercises in a conference room or other low-stakes environment to have key parties “walk through” scenarios and test response plans. These exercises also serve as training to enhance preparedness.

Blog-Tabletop-Exercises-InlineImage

The informal approach lets you test various disaster response plans without the disruption of a full-scale drill. Tabletop exercises are also a good opportunity to inject unexpected scenarios, so your team and your plan can adapt. Consider your geographic area and any risks related to your industry, and prioritize testing the disaster plans most likely to occur.  

9. Conduct formal testing and drills

An emergency drill tests your business continuity plan in a realistic environment. Conducting one of these at least annually and involving all critical stakeholders will help you prepare for the unexpected and protect your business and staff. 

The steps for running a full-scale drill are similar to those of a tabletop exercise, though they are more involved because you are conducting an actual simulation. A drill typically includes the following components: 

You will set goals to determine if your business continuity plan is successful. Some examples of goals might be achieving a 24-hour timeframe for resuming critical operations or maintaining customer satisfaction levels during a business disruption.

Participants

Every full-scale drill requires the involvement of all key stakeholders. These individuals will fit into one of four categories: facilitator, evaluator, observer, and participants.

A realistic scenario starts the activity. The facilitator will introduce the scenario to the group, including details such as the type of disaster, its location, the extent of its impact, and the specific challenges it poses. It is designed to immerse participants in a lifelike situation, prompting them to respond as they would in a genuine disaster.

An informal debrief or hot wash may occur following the disaster drill to capture immediate impressions and insights. All of this information will be documented for the next part of your continuity planning strategy: the after-action review.

10. Complete an after-action review 

An after-action review will allow all the stakeholders involved in your drill to share their impressions and gain feedback. This process is designed to answer four key questions: 

  • What were our goals?
  • What were our results?
  • What did we do well?
  • What could we do better?

You should involve all key stakeholders in this review and encourage frank, open discussion about how the drill unfolded. It may be helpful to anonymize feedback opportunities, like through anonymous surveys, to make individuals more comfortable with sharing. 

You can also use data from incident tracking software, communication logs, and participant feedback surveys to comprehensively understand the drill’s strengths and areas needing improvement. You can compile this information into an after-action report that you will use to document your findings and fix vulnerabilities. 

11. Fix vulnerabilities

Once you complete your after-action review and report, decide how to act on any vulnerabilities in your BCP, prioritizing them based on their severity and potential impact. Then, you will develop strategies for mitigation. These strategies may include updating or revising plan elements, investing in technology or infrastructure improvements, enhancing staff training, or refining a crisis management plan . 

This is an ongoing, continuous process. The threats to your business will change, and you’ll need to regularly assess their impact, kicking off the business continuity planning process all over again. 

12. Share your results

Finally, share your results and celebrate your wins with your team. Much like sharing the plan, you don’t have to give them all the details. Hit the high points and discuss areas of concern. 

You will also want to have internal reviews with key parties to provide an opportunity for feedback, learning, and continuous improvement. This collaborative approach fosters a culture of resilience. Everyone understands their role and actively safeguards the business during challenging times.

Financial firms face unique challenges when it comes to business continuity and disaster recovery . BCP in banking is your method of managing security threats, compliance requirements, and potentially catastrophic economic loss. Of course, maintaining business continuity isn’t just about recovering technology and assets. Above all, it’s about keeping your people safe, informed, and connected.

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Business continuity resource center.

Staying up-to-date on the best practices for business continuity is imperative to keep your institution running smoothly during a service disruption. Here are a few tips to keep you prepared before, during and after a service outage.

  • Bookmark the Service Status page on FRBservices.org SM  to stay abreast of the operational status of Federal Reserve Bank Services.
  • Maintain a current list of key personnel at your institution, including authorized individuals, to communicate with the Federal Reserve.
  • Print business continuity guides and critical contact information list just in case you do not have access to your network.
  • Host periodic training with your staff to make sure everyone is prepared if there is a service disruption.
  • Once an issue has been resolved, clear your cache to ensure you can view and access the appropriate updates.

Service Status is designed to keep you informed of the operational status of Federal Reserve Bank Services. Whether you need information on opening and closing times or you are looking for details regarding a disruption, Service Status is where you need to go. Watch the videos below to learn how to use this helpful tool.

  • Be Prepared Before, During and After a Service Disruption (Off-site)
  • General Notifications and Messages on Service Status (Off-site)
  • How to Access and Navigate Service Status (Off-site)

Business Continuity Guides

During a disruption, Federal Reserve staff members work to ensure the highest possible level of service. Successful operations will require both coordination and cooperation between financial institutions and Federal Reserve staff. There are a number of procedures in place to ensure the resilience following a service disruption. It is important that your staff becomes familiar with the information provided in the business continuity guides to be prepare in the event of a disruption.

  • Accounting Services Business Continuity Guide
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  • Fedwire ® Securities Service Business Continuity Guide
  • National Settlement Service Business Continuity Guide
  • Reserves Administration Business Continuity Guide
  • Statistical Reporting Business Continuity Guide
  • Treasury Services Business Continuity Guide

Relationship Manager Tips

Susan Bivens and Amy Paysour, two relationship managers, recently filmed a video focusing on their business contingency tips and Federal Reserve offerings to help get institutions prepared. Watch “ Are you ready? Business continuity tips from relationship managers .”

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Frequently Asked Questions

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The Bottom Line

What is a business continuity plan (bcp), and how does it work.

business continuity plan for banks

Investopedia / Ryan Oakley

What Is a Business Continuity Plan (BCP)? 

A business continuity plan (BCP) is a system of prevention and recovery from potential threats to a company. The plan ensures that personnel and assets are protected and are able to function quickly in the event of a disaster.

Key Takeaways

  • Business continuity plans (BCPs) are prevention and recovery systems for potential threats, such as natural disasters or cyber-attacks.
  • BCP is designed to protect personnel and assets and make sure they can function quickly when disaster strikes.
  • BCPs should be tested to ensure there are no weaknesses, which can be identified and corrected.

Understanding Business Continuity Plans (BCPs)

BCP involves defining any and all risks that can affect the company's operations, making it an important part of the organization's risk management strategy. Risks may include natural disasters—fire, flood, or weather-related events—and cyber-attacks . Once the risks are identified, the plan should also include:

  • Determining how those risks will affect operations
  • Implementing safeguards and procedures to mitigate the risks
  • Testing procedures to ensure they work
  • Reviewing the process to make sure that it is up to date

BCPs are an important part of any business. Threats and disruptions mean a loss of revenue and higher costs, which leads to a drop in profitability. And businesses can't rely on insurance alone because it doesn't cover all the costs and the customers who move to the competition. It is generally conceived in advance and involves input from key stakeholders and personnel.

Business impact analysis, recovery, organization, and training are all steps corporations need to follow when creating a Business Continuity Plan.

Benefits of a Business Continuity Plan

Businesses are prone to a host of disasters that vary in degree from minor to catastrophic. Business continuity planning is typically meant to help a company continue operating in the event of major disasters such as fires. BCPs are different from a disaster recovery plan, which focuses on the recovery of a company's information technology system after a crisis.

Consider a finance company based in a major city. It may put a BCP in place by taking steps including backing up its computer and client files offsite. If something were to happen to the company's corporate office, its satellite offices would still have access to important information.

An important point to note is that BCP may not be as effective if a large portion of the population is affected, as in the case of a disease outbreak. Nonetheless, BCPs can improve risk management—preventing disruptions from spreading. They can also help mitigate downtime of networks or technology, saving the company money.

How To Create a Business Continuity Plan

There are several steps many companies must follow to develop a solid BCP. They include:

  • Business Impact Analysis : Here, the business will identify functions and related resources that are time-sensitive. (More on this below.)
  • Recovery : In this portion, the business must identify and implement steps to recover critical business functions.
  • Organization : A continuity team must be created. This team will devise a plan to manage the disruption.
  • Training : The continuity team must be trained and tested. Members of the team should also complete exercises that go over the plan and strategies.

Companies may also find it useful to come up with a checklist that includes key details such as emergency contact information, a list of resources the continuity team may need, where backup data and other required information are housed or stored, and other important personnel.

Along with testing the continuity team, the company should also test the BCP itself. It should be tested several times to ensure it can be applied to many different risk scenarios . This will help identify any weaknesses in the plan which can then be corrected.

In order for a business continuity plan to be successful, all employees—even those who aren't on the continuity team—must be aware of the plan.

Business Continuity Impact Analysis

An important part of developing a BCP is a business continuity impact analysis. It identifies the effects of disruption of business functions and processes. It also uses the information to make decisions about recovery priorities and strategies.

FEMA provides an operational and financial impact worksheet to help run a business continuity analysis. The worksheet should be completed by business function and process managers who are well acquainted with the business. These worksheets will summarize the following:

  • The impacts—both financial and operational—that stem from the loss of individual business functions and process
  • Identifying when the loss of a function or process would result in the identified business impacts

Completing the analysis can help companies identify and prioritize the processes that have the most impact on the business's financial and operational functions. The point at which they must be recovered is generally known as the “recovery time objective.”

Business Continuity Plan vs. Disaster Recovery Plan

BCPs and disaster recovery plans are similar in nature, the latter focuses on technology and information technology (IT) infrastructure. BCPs are more encompassing—focusing on the entire organization, such as customer service and supply chain. 

BCPs focus on reducing overall costs or losses, while disaster recovery plans look only at technology downtimes and related costs. Disaster recovery plans tend to involve only IT personnel—which create and manage the policy. However, BCPs tend to have more personnel trained on the potential processes. 

Why Is Business Continuity Plan (BCP) Important?

Businesses are prone to a host of disasters that vary in degree from minor to catastrophic and business continuity plans (BCPs) are an important part of any business. BCP is typically meant to help a company continue operating in the event of threats and disruptions. This could result in a loss of revenue and higher costs, which leads to a drop in profitability. And businesses can't rely on insurance alone because it doesn't cover all the costs and the customers who move to the competition.

What Should a Business Continuity Plan (BCP) Include?

Business continuity plans involve identifying any and all risks that can affect the company's operations. The plan should also determine how those risks will affect operations and implement safeguards and procedures to mitigate the risks. There should also be testing procedures to ensure these safeguards and procedures work. Finally, there should be a review process to make sure that the plan is up to date.

What Is Business Continuity Impact Analysis?

An important part of developing a BCP is a business continuity impact analysis which identifies the effects of disruption of business functions and processes. It also uses the information to make decisions about recovery priorities and strategies.

FEMA provides an operational and financial impact worksheet to help run a business continuity analysis.

These worksheets summarize the impacts—both financial and operational—that stem from the loss of individual business functions and processes. They also identify when the loss of a function or process would result in the identified business impacts.

Business continuity plans (BCPs) are created to help speed up the recovery of an organization filling a threat or disaster. The plan puts in place mechanisms and functions to allow personnel and assets to minimize company downtime. BCPs cover all organizational risks should a disaster happen, such as flood or fire.  

Federal Emergency Management Agency. " Business Process Analysis and Business Impact Analysis User Guide ." Pages 15 - 17.

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Banking on resilience: Critical paradigm shift for Financial Service examiners

The FFIEC’s recent  release  of its Business Continuity Management handbook sets critical new paradigms for FS examiners, signaling a shift to operational resilience.

Guidance from the Federal Financial Institutions Examination Council (FFIEC) makes it clear that, in the financial services industry, recovering IT systems quickly after an outage is no longer good enough.

Bank regulators are expanding the old business continuity planning and disaster recovery (BCP/DR) model to encompass all aspects of resilience (ie. operational and cyber), effectively setting a new bar for regulated entities.

Rethinking resilience

As Financial services (FS) regulators around the world shift their focus, PwC has done the same . We’ve been calling for a rethinking of resilience for a number of reasons:

  • With globalization and increased competitive pressures leading to more outsourcing, offshoring and automation, FS firms are now more interconnected and complex than ever before. A breakdown at any one step can disrupt the entire chain.
  • Financial institutions are innovating in new areas—migrating more and more services and data to the cloud, for example—but managers’ understanding of these technologies doesn’t keep pace with the speed of change. Too often they don’t update their risk and resilience programs to account for critical dependencies that emerge.
  • Since the last financial crisis, enhanced risk management, stress testing, capital planning and liquidity management have generally improved financial resilience. But traditional BCP/DR activities have received less attention in some firms, and often are focused on maintaining existing capabilities, rather than continuously improving in maturity and depth.
  • Regulators increasingly expect boards of directors to don the mantle of operational resilience oversight, a task for which they may not be adequately prepared.

The FFIEC addresses these concerns and sets parameters for regulatory examiners of  financial institutions and their third-party service providers.

Issued in November 2019, the FFIEC’s  Business Continuity Management booklet represents the council’s first significant update in more than four years. It expands its focus to business continuity management , not just business continuity planning. In doing so, it echoes some of the key tenets of the 2018 Bank of England’s (BoE) influential discussion paper, Building the UK financial sector’s operational resilience  (PDF, 868 KB).

The update formalizes a definition of resilience found in the National Institute of Standards and Technology (NIST) glossary: “The ability to prepare for and adapt to changing conditions and withstand and recover rapidly from disruptions. Resilience includes the ability to withstand and recover from deliberate attacks, accidents, or naturally occurring threats or incidents.”

It also enjoins examiners to hone in on FS enterprises’ and service providers’ ability to keep their most important business functions operating and available to customers and other stakeholders. And it wants to see FS entities working to minimize any ripple effects an outage might have on others in its business ecosystem and on overall financial systems.

Subtle but significant shifts to resilience that the FFIEC will trigger

While the BoE’s paper introduced bold new concepts, the 2019 FFIEC update appears to aim for a more nuanced pivot from BCP/DR to operational resilience.

Here are the shifts in a nutshell:

1. Moves emphasis away from business continuity planning (BCP) to business continuity management (BCM)

2. provides a repeatable process for identifying critical business functions, 3. introduces the term “maximum tolerable downtime”, 4. emphasizes need for more meaningful testing, 5. allows more flexibility in testing, 6. refers to entities, not just “financial institutions”, 7. expands the role of business impact analysis (bia), 8. spells out resilience duties of management and boards.

The 2015 FFIEC document spoke of systems recovery, whereas the new booklet emphasizes the continuity of operations throughout the overall entity: technology, operations, testing and communication, focusing on the "continued maintenance of systems and controls for the resilience of operations."

The new document provides a clear, repeatable process for identifying critical business functions and analyzing their interdependencies internally and externally (also known as “mapping”). It also says that entities should understand how a disruption of these functions could affect markets and the entity’s larger community.

The FFIEC booklet directs entities to determine how much disruption they can tolerate—including data loss as well as downtime. It also clarifies how entities should establish their targets for post-cyber-event systems recovery and data restoration, advising organizations to  be realistic : “Establishing realistic RTOs (recovery time objectives) assists management in determining a critical path and hierarchy for recovery. For example, a process with a shorter RTO that is dependent upon on a process with a longer RTO may indicate a gap that should be analyzed further,” the document states. The concept appears similar to the BoE discussion paper’s “impact tolerances.”

Conducting tabletop exercises is no longer enough: the FFIEC guidance instructs examiners to also look for integrated tests of technology and business functions using multiple, complex and threat-intelligence-driven scenarios with event simulations.

While yearly testing of BCP/DR plans has long been the norm, the 2019 FFIEC booklet affords a multi-year testing schedule where appropriate—a change enabled in part by more robust testing. While high-priority business functions might still need annual testing, those deemed less critical could be tested every two or three years, for example. This change recognizes the burden that undifferentiated yearly testing can place on financial institutions, and lets them use periodic tests to build maturity over time.

Again, this change is subtle, but the language of the FFIEC document now encompasses non-financial organizations such as cloud service providers, establishing that, if they provide services to financial institutions, they must follow the same rules.

The new booklet expands the role of BIA from merely identifying risk to also maintaining business continuity with continuous systems monitoring, which can help to ensure that changes in business operations are always accounted for. It also calls for continually improving resilience processes by using metrics to analyze the effects of every disruption and to determine whether recovery objectives are reasonable.

The new guidance is clear on the duties and functions of  management and the board of directors . “The board and senior management should set the ‘tone at the top’ and consider the entity’s entire operations, including functions performed by affiliates and third-party service providers, when managing business continuity,” the document advises.

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The case for proactive action to build resilience

Resilience is taking precedence among FS regulators not only in the US but worldwide. One reason is the escalation of cyberattacks on the FS industry, including nation-state sponsored incidents. Financial institutions globally experienced six nation-state attacks alone in 2018, up from two each in 2016 and 2017.

On the heels of its influential 2018 discussion paper, the BoE’s decision to stress test UK banks’ operational resilience this fall prefigured the FFIEC changes. ( The BoE published the results of those tests in December 2019 .)

But regulators already have been issuing resilience-focused Matters Requiring Attention (MRA) letters directly to financial institutions—even before the FFIEC published its update.

The writing is on the proverbial wall, and every financial entity and service provider would do well to pay attention. Those who embark now on the road to resilience will enjoy many advantages over those forced to contend with an MRA. 

Remediating an MRA triggers a costly and stressful process of developing plans and implementing them on a tight schedule. Those so penalized must also satisfy regulators that they can maintain their resilience posture over the longer term, beyond remediation.

In the meantime, savvier organizations worldwide (those who scored high on resilience measures, so-called “high-RQ”) have already been revamping their BCP/DR programs with resilience in mind, according to PwC’s Digital Trust Insights study.

Being proactive on resilience means being able to manage the scope, costs and timing involved in building an organization's operational resilience.

Actions to take now

  • Lay the governance foundation for resilience
  • Set your recovery goals and targets
  • Measure your program’s effectiveness
  • Stay current with changes
  • Establish a team to oversee resilience enterprise-wide, ideally under the leadership of a Chief Resilience Officer.
  • Step up your first-line (management) and business teams’ involvement in responding to threats and disruptions.
  • Revamp your remediation programs to include all affected functions: business units, operations, technology, RRP and your resiliency organization.
  • Take advantage of existing industry initiatives such as  Sheltered Harbor , which the  FFIEC booklet mentions  as “An example of an industry initiative to assist in addressing the resilience of customer account information.”
  • Expand the scope of your Business Impact Analysis to include identifying all your business functions, prioritizing them in order of their criticality, setting realistic RTOs, MTDs and data restoration targets, and emphasizing the restoration of operational processes and critical business functions within those targets.
  • Map your dependencies between functions, processes, technology assets, and other internal and external participants.
  • Use a common taxonomy enterprise-wide listing recovery plan inputs.
  • Assess and test impacts of cyber incidents and disruptions using simulations and other more rigorous tests in addition to tabletop exercises. After an incident, ask: Were business functions interrupted? How quickly and effectively were they restored? Did you meet your targets? Why or why not?
  • Build a dedicated test environment that can handle robust and complex simulations.
  • Identify and monitor continuity risks, and scrutinize your metrics regarding incidents and disruptions using a variety of dashboards to analyze them from different perspectives. Include a “mandatory adherence to standards” test. Do you pass? Why or why not?
  • Strengthen your third-party risk management so that you provide the same level of scrutiny to non-FS organizations and service providers as to those in FS.
  • Update your scenario libraries to account for new risks such as cyber attack-related data loss.
  • Adopt more complex operating models to safeguard third-party services (such as cloud services), remote workforces and increases in mobile end-users.
  • Automate your recovery. Manual processes take more time, making it more likely that large, complex entities will miss restoration goals.

Financial services

Adam Gilbert

Global Senior Regulatory Advisor, PwC US

Julien Furioli

Principal, Financial Services Technology, PwC US

Tamika Boateng

Financial services, PwC US

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Shawn Lonergan

Partner, Technology & Operational Resilience, PwC US

Michael Hodges

Managing Director, Cybersecurity and Privacy, PwC US

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Business continuity planning in banking and finance

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Oro provides content designed to educate and help audiences on their compliance journey.

“In banking or finance, trust is the only thing you have to sell.” Patrick Dixon

Banking and finance is a key part of the modern economy, and ensuring the stability of financial institutions is paramount. But how do banks maintain their operations during unforeseen disruptions and crises? 

The answer is robust Business Continuity Planning (BCP) . 

If you’re in banking or finance, you’ll know BCP is a critical component of any bank’s risk management strategy, and its importance cannot be overstated. In this post, we delve into the world of BCP in banking, highlighting its role and key components.

Key takeaways

  • Business Continuity Planning (BCP) is essential for banks to remain resilient during crises and comply with regulatory requirements.
  • BCP should include risk assessment, technical solutions, HR & training, and a Business Impact Analysis (BIA).

The role of Business Continuity Plans in banking

Business Continuity Planning is a proactive process designed to anticipate potential threats, vulnerabilities, and weaknesses. The BCP process bolsters a bank’s resilience during crises. It aims to reduce losses and maintain business operations despite disruptions. 

Imagine a scenario where a major natural disaster or cyber attack impacts your bank’s operations, and you have no plan in place. The consequences could be dire, leading to financial loss, reputational damage, and regulatory non-compliance.

Banking’s BCP encompasses having an established plan, adhering to regulatory standards, and stabilizing financial markets. It encompasses a broader scope than Disaster Recovery Planning (DRP), which focuses solely on the technical aspects of recovering IT infrastructure and systems. 

At its core, a thorough BCP in banking: 

  • Addresses all aspects of a bank’s operations
  • Trains employees to manage disruptions
  • Ensures uninterrupted service to customers while retaining its market position

Regulatory requirements

Banks are required to have a comprehensive BCP in place to address potential disruptions and ensure compliance with industry standards. This includes adhering to the ISO 22301:2019 standard, the global benchmark for business continuity management.

Adherence to these regulatory standards allows banks to show dedication to sustaining operations, customer service, and financial asset protection during disasters.

Financial market participants and infrastructure service providers

The modern financial system is a complex web of interconnected market participants and infrastructure service providers, including financial institutions such as:

  • Investment banks
  • Broker-dealers
  • Individuals

As a result, the stability of the entire financial system hinges on the ability of each participant to maintain their operations during disruptions.

In this context, BCP in banking must consider the interconnectedness of financial market participants and infrastructure service providers to minimize systemic risks.

To develop a thorough BCP, banks need to gauge the prospective impacts of disruptions on the market, along with the geographic interdependencies that shape contemporary local, national, and global banking networks. This way, their BCP can tackle the distinct challenges presented by this interlinked financial environment, allowing them to persistently serve their customers and stabilize financial markets amidst considerable disruptions.

Understanding specific disruptions to banking

A significant business disruption can take many forms. Banks must address specific disruptions, such as natural disasters, cyber attacks, and pandemics, in their BCPs to ensure comprehensive coverage and preparedness. By considering these unique challenges, banks can develop targeted strategies and solutions that address the specific risks and vulnerabilities posed by each type of disruption.

Damage from natural disasters

The frequency and intensity of natural disasters (earthquakes, hurricanes, wildfires, floods, etc.) are on the rise. While these pose a significant risk to habitat and humanity, they also cause significant disruptions to business operations, including banking. Banks, therefore, require contingency plans for physical damage, power outages, and disruptions to transportation and communication networks. 

Banks can also use financial products, such as insurance, to address the financial risks of natural disasters. By having comprehensive plans in place to address the unique challenges posed by natural disasters, banks can minimize the impact on their customers and ensure the stability of the financial system during such events.

Cyber attacks and technological failures

Cyber attacks and technological failures also pose significant threats to banks, as they can lead to data breaches, system outages, and financial loss. According to the IMF :

“The financial sector is particularly vulnerable to cyber-attacks. These institutions are attractive targets because of their crucial role in intermediating funds. A successful cyber-attack on one institution could spread rapidly through the highly interconnected financial system.”

To address these threats, banks must implement robust cybersecurity measures, such as firewalls, encryption software, and endpoint protection, to safeguard their IT infrastructure and systems from malicious actors.

In addition to cybersecurity measures, banks must also invest in data backup and recovery solutions to ensure the availability of their data and systems in the event of a cyber attack or technological failure. These solutions, coupled with comprehensive incident response plans, can help banks minimize the impact of cyber-attacks and technological failures on their operations and customers.

Pandemics and staff inaccessibility

Pandemics ( such as the COVID-19 outbreak ) present unique challenges for banks, as they can lead to staff inaccessibility, remote work requirements, and health and safety concerns. To address these challenges, banks must establish plans for remote work, alternative staffing arrangements, and health and safety protocols to ensure the well-being of their employees and customers during such events.

Prioritizing employee well-being and safety allows banks to:

  • Foster a supportive work environment
  • Enable employees to perform optimally during disruptions and emergencies
  • Maintain the continuity of critical functions and services
  • Ensure that the bank can continue to serve its customers
  • Maintain the stability of the financial system during pandemics and other staff inaccessibility events

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Business Continuity Planning is an important element of ISO 27001 compliance. Find out what it looks like for your organization.

3 key components of a bank’s Business Continuity Planning process

So, how do you stay ahead of these disruptions? A well-rounded bank’s BCP consists of three key components : 

  • Risk assessment and management
  • Technical recovery solutions
  • Human resources and training

Each component plays a crucial role in ensuring the bank’s ability to withstand disruptions and continue providing essential services to its customers. Let’s look at each in more detail.

1. Risk assessment and management

Risk assessment and management is the first step in developing a comprehensive BCP for banks. It involves:

  • Identifying potential threats and vulnerabilities, such as data loss, regulatory non-compliance, reputational damage, financial risk, and human-caused disasters
  • Implementing measures to mitigate their impact on operations
  • Ensuring the continuity of critical functions

An efficient risk management process also requires frequent BCP updates to accommodate changes in the bank’s operations, threat scenarios, and audit suggestions. Continuous risk assessment and management allow banks to:

  • Keep their Business Continuity Plans updated
  • Ensure their plans are efficient in handling possible disruptions
  • Minimize the effect on their customers and financial system stability

2. Technical recovery solutions

Technical recovery solutions focus on the restoration of IT infrastructure and systems during a disruption, ensuring the continuity of critical functions and contributing to business recovery. In today’s digital age, the resilience of a bank’s IT systems is of utmost importance, as even minor disruptions can have far-reaching consequences for the bank’s operations and customers.

To address this challenge, banks must invest in robust technical recovery solutions. These solutions not only help banks restore their core systems and data following a disruption but also provide the necessary tools for monitoring and managing their IT infrastructure, ensuring the highest level of resilience and preparedness.

3. Human resources and employee training

Human resources and employee training are essential components of a bank’s BCP, as they ensure that employees are aware of their roles and responsibilities during a disruption and can effectively execute the plan. Training should incorporate emergency response drills, BCP procedure overviews, and periodic plan reviews to keep employees current and conversant with the processes.

Moreover, banks must invest in the well-being and safety of their employees, as they are the backbone of the organization. By providing access to mental health support, flexible work options, and clear health and safety guidelines, banks can create a supportive work environment that enables employees to perform at their best during disruptions and emergencies.

The importance of Business Impact Analysis (BIA) in banking

Business Impact Analysis (BIA) is an important aspect of BCP in banking, as it helps banks identify critical functions, assess the potential impact of disruptions, and set recovery time objectives to prioritize resources and efforts.

Executing an exhaustive BIA provides banks with valuable insights into their operations and weaknesses, which aids in the development of targeted recovery strategies and disruption impact minimization on customers and the financial system.

Identifying critical functions

Critical business functions in banks (e.g., transaction processing or customer account services) are those that would have a disastrous effect on stakeholders or the bank if they were to fail.

Identifying these functions is crucial for determining which processes and systems must be prioritized for recovery during a disruption.

Concentrating on the most critical operation aspects enables banks to allocate resources and efforts effectively, thereby reducing the disruption impact on customers and financial system stability.

Setting recovery time objectives

Recovery time objectives (RTOs) are a key component of the BIA process, as they help banks establish the maximum acceptable downtime for critical functions. 

Setting RTOs involves assessing the: 

  • Bank’s risk appetite
  • Cost of downtime
  • Availability of resources
  • Potential impact of downtime on customers and stakeholders

Clear RTOs help banks steer recovery strategy development and ensure their readiness to handle disruptions promptly and effectively.

Examples of RTOs in banking include restoring core banking systems within 24 hours, gaining customer access within 48 hours, and resuming full operations within 72 hours. These objectives serve as benchmarks for banks to measure their progress and preparedness, helping them identify areas for improvement and adjust their BCP accordingly.

Implementing and testing a bank’s Business Continuity Plan

Implementing and testing a bank’s BCP is a structured process that involves regular maintenance and updates to ensure its effectiveness during a disruption. The process encompasses:

  • Recovery strategy development
  • Roles and responsibilities allocation
  • Communication protocol establishment
  • Regular reviews and updates to maintain an up-to-date and effective plan

BCP implementation process

The BCP implementation process begins with the development of recovery strategies, which outline the specific actions and resources required to restore critical functions and systems following a disruption. These strategies should be based on the findings of the bank’s BIA and risk assessment, ensuring that they address the most significant threats and vulnerabilities.

Once recovery strategies have been developed, banks must assign roles and responsibilities to employees, outlining their duties during disruption and ensuring that they are trained and prepared to execute the BCP, which includes the disaster recovery plan. Establishing clear communication protocols is also essential, as it enables the bank to maintain effective coordination and information sharing during a disruption.

Testing and maintenance

Regular testing and maintenance are critical to the success of a bank’s BCP, as they help identify weaknesses and areas for improvement, ensuring that the plan remains current and effective. Testing can involve various methods, including tabletop exercises, walkthroughs, and full-scale simulations. These exercises not only evaluate the plan’s viability but also assess the ability of employees and executives to handle stress and make decisions under pressure.

Alongside testing, regular BCP maintenance is vital to keep the plan updated and responsive to changes in the bank’s operations, threat scenarios, and audit suggestions. By conducting regular reviews and updates, banks can ensure that their BCP remains effective in addressing potential disruptions, thereby minimizing the impact on their customers and financial system’s stability.

Conclusion: BCP is a critical component of a bank’s risk 

By addressing potential threats, vulnerabilities, and disruptions, banks can ensure the continuity of operations, comply with regulatory requirements, and maintain the stability of financial markets. 

A comprehensive BCP encompasses risk assessment and management, technical recovery solutions, human resources, and training, as well as business impact analysis to identify critical functions and set recovery time objectives. With proper planning, communication, and regular testing and maintenance, banks can be well-prepared to face any disruption and continue to serve their customers and support the financial system during challenging times.

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How To Develop a Bank Business Continuity Plan

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Developing a bank business continuity plan is vital for entrepreneurs. A bank business continuity plan will help protect your business in the event of an unexpected disruption. Here are some tips on how to develop a bank business continuity plan for your business.

What Is a Business Continuity Plan?

A business continuity plan outlines how a business will continue to operate in the event of an unexpected disruption. The plan should include procedures for how the bank will maintain operations, protect employees and customers, and minimize disruptions.

For example, if your bank experiences a power outage, your business continuity plan should include procedures for how your bank will continue to operate. The plan should also include procedures for how you will communicate with employees and customers during the disruption.

Importance of Business Continuity Planning for Banks

Banks are critical businesses that provide essential services to their customers. In the event of an unexpected disruption, banks need to have a plan in place to ensure that they can continue to provide these essential services.

Business continuity planning helps banks to protect their employees, customers, and operations. In the event of a disruption, bank business continuity plans help to ensure that banks can quickly resume operations and minimize disruptions.

Elements of a Continuity Plan for Banks

Several key elements should be included in a bank business continuity plan. These elements include:

  • Identifying critical employees and functions
  • Developing backup plans
  • Testing and rehearsing
  • Updating the plan

Let’s take a closer look at developing the continuity plan.

How to Develop a Business Continuity Plan for Your Bank

There are a few key steps that you will need to take to develop a bank business continuity plan.

  • Assess your risks : The first step is to assess the risks that could potentially disrupt your bank’s operations. This includes identifying both external and internal risks. For example, external risks could include a natural disaster or a power outage. Internal threats could include a data breach or an employee strike.
  • Identify your critical functions : Once you have identified the risks that could disrupt your bank’s operations, you will need to identify which functions are critical to your bank’s operation. These are the functions that must be maintained to keep your bank running such as customer service or cash management.
  • Develop procedures for maintaining operations : Once you have identified your critical functions, you will need to develop procedures for how these functions can be maintained in the event of a disruption. This includes developing procedures for things like alternative sites. If your bank has multiple locations, you will need to identify alternative sites where your bank can operate if one of your locations is unavailable.
  • Employee training : Remember that once you develop your business continuity plan for your bank, you will need to train your employees on how to execute the procedures. This is essential for ensuring that your bank can quickly resume operations in the event of a disruption.
  • Test your plan : Once you have developed your bank business continuity plan, you will need to test it to ensure that it is effective. This includes conducting drills and exercises to simulate a disruption. This will help you to identify any weaknesses in your plan so that you can make necessary adjustments.
  • Update your plan : It is important to regularly update your bank business continuity plan. As your bank grows and changes, so too will the risks that could potentially disrupt your operations. By regularly updating your plan, you can ensure that it remains effective. Update the plan at least annually or after any major changes to your bank.

Develop Your Bank Business Continuity Plan

By following these steps, you can develop an effective bank business continuity plan that will help to protect your business in the event of a disruption.

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Business Continuity Plan Template for Retail Banks

Business Continuity Plan Template for Retail Banks

What is a Business Continuity Plan for Retail Banks?

A Business Continuity Plan for Retail Banks outlines the strategies, processes, and practices that will be used to protect the bank’s operations and services in the event of an emergency or disruption. This plan can help minimize the impact of an emergency on the overall operations of the bank, allowing it to continue its operations with minimal interruption or disruption.

What's included in this Business Continuity Plan for Retail Banks template?

  • 3 focus areas
  • 6 objectives

Each focus area has its own objectives, projects, and KPIs to ensure that the strategy is comprehensive and effective.

Who is the Business Continuity Plan for Retail Banks template for?

This Business Continuity Plan template is designed for retail banks and other financial institutions to help them develop their own business continuity plans. These plans are essential to ensure the continuity of banking operations, customer services, and financial transactions during emergencies or disruptions.

1. Define clear examples of your focus areas

A focus area is a broad area of the business which an organization wishes to improve or maintain. In this plan, the focus areas are Business Continuity, Risk Management, and Data Security. Each focus area should have a set of objectives, measurable targets (KPIs), and related projects that can be implemented to achieve the desired outcomes.

2. Think about the objectives that could fall under that focus area

Objectives are specific, measurable goals that an organization wishes to achieve. Each focus area should have a set of objectives that can be achieved through the implementation of related projects. Examples of some objectives for the focus area of Business Continuity could be: Develop a comprehensive Business Continuity Plan, and Ensure continuity of banking operations, customer services, and financial transactions.

3. Set measurable targets (KPIs) to tackle the objective

KPIs or Key Performance Indicators are measurable targets that help track the progress of objectives. These are defined for each objective and can be used to measure the success of the projects implemented to achieve the objectives. An example of a KPI for the focus area of Business Continuity could be: plan Business Continuity Plan.

4. Implement related projects to achieve the KPIs

Projects or actions are the specific steps taken to achieve the objectives and reach the KPIs. Each project should have a set of actions and responsibilities that need to be completed in order to achieve the desired outcome. An example of a project related to Business Continuity could be: Establish a Business Continuity Committee.

5. Utilize Cascade Strategy Execution Platform to see faster results from your strategy

Cascade Strategy Execution Platform is a comprehensive platform designed to help organizations develop and execute their strategies faster and more effectively. The platform provides intuitive tools and features to help you manage your strategy, track progress and results, and collaborate with your team.

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Business Continuity Plan in Banks: Ensuring Uninterrupted Operations

February 1, 2024

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A Business Continuity Plan (BCP) in banks is a strategic framework that ensures uninterrupted operations and service delivery during and after a disaster or crisis.

Banks need to remain resilient during crises and comply with regulatory requirements . A comprehensive BCP will include strategies for risk mitigation , preparedness, quick recovery from operational disruptions , and maintaining critical functions.

It often involves reviewing exposures , identifying critical business functions, and preparing for various scenarios, including natural disasters, cyber-attacks, or any event that could significantly impact the bank’s ability to operate.

An effective BCP in banking focuses on maintaining, resuming, and recovering business operations, including the technology infrastructure critical for day-to-day functions.

A bank’s BCP process should reflect objectives that align with regulatory expectations and best practices to ensure the institution can continue to provide essential services to its customers, even in adverse conditions.

This includes having a checklist, tips for creating a robust plan and addressing frequently asked questions to guide banks in developing their own BCP strategies ( AlertMedia , FDIC ).

Banks are essential to the global economy, and their operations must be resilient to disruptions. As such, business continuity planning (BCP) is a critical aspect of the banking industry.

A business continuity plan for a bank is a comprehensive set of procedures and strategies that aim to ensure that the bank can continue operating in the event of a disruption.

A business continuity plan in banks is designed to identify potential disruptions and outline the steps that must be taken to mitigate their impact. The plan should address various scenarios, including natural disasters , cyber-attacks, pandemics, and other events that can cause significant disruptions to the bank’s operations.

The BCP must also consider the bank’s critical functions, such as payment processing, customer service, and data management , among others.

Key Takeaways

  • Business continuity planning is crucial for banks to ensure their operations can continue in the event of a disruption.
  • A business continuity plan must identify potential disruptions and outline the steps that must be taken to mitigate their impact.
  • The plan should address various scenarios, consider the bank’s critical functions, and comply with regulatory standards.

Understanding Business Continuity Planning

Concept of business continuity.

Business Continuity Planning (BCP) is the process of creating a strategy to ensure that essential business functions continue to operate during and after a disaster or other disruptive event.

The goal of BCP is to minimize the impact of the disruption and to ensure that the organization can continue to operate with as little disruption as possible.

Business continuity plans typically identify the critical business processes and the interdependencies between them. They also outline the steps that need to be taken to ensure that these processes can be restored quickly and efficiently in the event of a disruption.

business continuity plan

This includes identifying the resources that will be needed, such as personnel, facilities, and technology.

Importance for Financial Institutions

Business Continuity Planning is particularly important for financial institutions like banks and credit unions. Regulators require these institutions to have a BCP in place to ensure that they can continue providing essential services to their customers during a disruption.

The impact of a disruption to a financial institution can be significant in terms of financial losses and damage to reputation.

A well-designed and tested BCP can help to minimize these risks and ensure that the institution can continue to operate with minimal disruption.

Business Continuity Planning is a critical process for financial institutions to ensure that they can continue to operate in the event of a disruption.

By identifying critical business processes and interdependencies and outlining the steps needed to restore them, financial institutions can minimize the impact of a disruption and ensure that they can continue to provide essential services to their customers.

Key Components of a Business Continuity Plan

A Business Continuity Plan (BCP) is a comprehensive plan that outlines an organization’s procedures and strategies for recovering from significant disruptions.

For banks, a BCP is essential to ensure that they can continue to provide services to their customers and maintain their reputation in the market.

Business Impact Analysis

The first step in developing a BCP is to conduct a Business Impact Analysis (BIA). A BIA identifies the bank’s critical functions and the potential impact of disruptions to those functions.

It also identifies the resources required to recover those functions. A BIA helps the bank prioritize its recovery efforts and allocate resources effectively.

Recovery Strategies

Once the BIA is complete, the bank can develop recovery strategies to address the potential disruptions identified in the analysis.

Recovery strategies should include procedures for restoring critical functions and systems and plans for communicating with customers, employees, and other stakeholders.

Plan Development and Documentation

The final step in developing a BCP is documenting the plan and procedures. The plan should be comprehensive and easy to understand, with clear instructions for each recovery process step.

It should also include contact information for key personnel and vendors and backup plans in case the primary recovery strategies are ineffective.

A well-developed BCP is critical to ensuring that a bank can continue to provide services to its customers and maintain its reputation in the market.

a disaster

By conducting a thorough BIA, developing effective recovery strategies, and documenting the plan and procedures, a bank can be confident that it is prepared to recover from significant disruptions.

Operational Resilience in Banks

Banks must have a Business Continuity Plan (BCP) in place to ensure that they can continue to provide essential services to their customers in the event of a disruption.

However, in recent years, regulators have expanded the scope of BCP to encompass all aspects of resilience, including operational and cyber resilience . This shift has led to the development of the Operational Resilience (OR) concept in banks.

Technology and Infrastructure

Technology and infrastructure are critical components of OR in banks. Banks must ensure that their IT systems and infrastructure are resilient and can withstand disruptions.

This includes having redundant systems in place, ensuring that backups are regularly tested and updated, and having a disaster recovery plan .

Banks also need to ensure that their staff are trained in the use of the IT systems and infrastructure and that they are aware of the procedures to follow in the event of a disruption.

This includes having clear communication channels in place, both internally and externally, and having a system for reporting and tracking issues.

Financial Services Continuity

Financial services continuity is another key component of OR in banks. Banks need to ensure that they can continue to provide essential financial services to their customers in the event of a disruption.

This includes having contingency plans for critical business processes, such as payment processing and account management.

Banks also need to ensure that their staff are trained in the procedures to follow in the event of a disruption, and that they are aware of the importance of maintaining financial services continuity .

Operational Resilience is a critical component of the Business Continuity Plan in banks. Banks need to ensure that their IT systems and infrastructure are resilient, that their staff are trained in the procedures to follow in the event of a disruption, and that they have contingency plans for critical business processes.

By doing so, banks can ensure that they can continue to provide essential services to their customers in the event of a disruption.

Risk Management and Impact Analysis

Banks are exposed to various risks resulting in financial loss , reputational damage, and legal liabilities. Therefore, risk management is a critical aspect of business continuity planning .

The following are the two main components of risk management and impact analysis:

Identifying and Assessing Risks

The first step in risk management is to identify and assess potential risks that can disrupt the bank’s operations. This includes internal and external risks, such as cyber-attacks, natural disasters, power outages, and human errors.

Banks can use various techniques, such as risk assessment matrices , scenario analysis, and historical data analysis, to identify and prioritize risks .

Conducting Business Impact Analysis

Once the risks are identified and prioritized, the next step is to conduct a business impact analysis (BIA). A BIA assesses the potential impact of a disruption on the bank’s critical business processes and functions.

It helps banks identify their recovery time objectives (RTOs) and recovery point objectives (RPOs) for each critical process.

Banks should identify the interdependencies between their critical processes and functions during the BIA. This helps to ensure that the recovery of one process does not depend on the recovery of another process.

Banks should also identify the resources required to recover critical processes, such as personnel, technology, and facilities.

Risk management and impact analysis are critical components of business continuity planning for banks. By identifying and assessing potential risks and conducting a BIA, banks can develop effective strategies to mitigate the impact of disruptions on their critical business processes and functions.

business impact analysis

Testing and Maintenance of BCP

Business Continuity Plan (BCP) is essential to any bank’s risk management strategy . Testing and maintaining the plan is crucial to ensure the bank is prepared for any unexpected event.

This section will discuss the importance of regular testing procedures and updating and improving the plan.

Regular Testing Procedures

Regular testing procedures are essential to ensure that the BCP is effective and can be implemented promptly and efficiently.

Banks should test their BCP at least once a year to identify any weaknesses and areas for improvement. The testing process should involve all relevant stakeholders, including senior management, IT staff, and other key personnel.

The testing process should include a range of scenarios, including natural disasters, cyber-attacks, and other potential threats.

Banks should also measure the effectiveness of their BCP against predefined metrics to ensure that the plan meets the required standards. The testing process results should be documented and reviewed by senior management to identify any areas for improvement.

Updating and Improving the Plan

BCP is not a one-time exercise, and banks should regularly update and improve their plan to ensure it remains effective.

Banks should review their BCP at least once a year to identify any changes in the business environment and update the plan accordingly. This includes changes in the bank’s operations, IT infrastructure, and regulatory requirements.

Banks should also identify any weaknesses in their BCP and take steps to improve the plan. This may include updating the plan to include new processes, technologies, or procedures. Banks should also ensure their staff is trained to implement the updated plan effectively.

Testing and maintenance of the BCP is essential to ensure that banks can respond effectively to unexpected events. Regular testing procedures and updating and improving the plan are crucial to ensure that the BCP remains effective and meets the required standards.

Training and Awareness

Banks must have a comprehensive training program to ensure that all personnel know the business continuity plan and their roles in its implementation.

This training program can include both online and in-person training sessions and regular drills and exercises to test the plan’s effectiveness.

Employee Training Programs

Employee training programs should cover the following topics:

  • The purpose and scope of the business continuity plan .
  • The roles and responsibilities of each employee in the event of a disruption.
  • The procedures for activating the plan and contacting key stakeholders.
  • The communication channels that will be used during a disruption.
  • The steps that must be taken to resume normal operations.
  • The importance of maintaining accurate and up-to-date contact information.

Training sessions should be tailored to each employee’s specific roles and responsibilities.

For example, IT personnel may require more in-depth training on the technical aspects of the plan, while customer service representatives may require more training on communication protocols.

Stakeholder Communication

Effective communication with stakeholders is critical during a disruption. Banks should have a communication plan outlining the procedures for contacting stakeholders and keeping them informed.

The communication plan should include the following:

  • A list of key stakeholders, including customers, vendors, and regulators.
  • The communication channels, such as phone, email, or social media, will be used to contact stakeholders.
  • The frequency of updates and the information that will be provided.
  • The procedures for escalating communication if necessary.

Banks should also conduct regular communication drills to test the effectiveness of the communication plan and identify any areas that need improvement.

A comprehensive training and awareness program is essential for ensuring that banks are prepared to respond effectively to disruptions and minimize the impact on their operations.

Regulatory Compliance and Standards

Business Continuity Planning (BCP) is essential for banks to remain resilient during crises and comply with regulatory requirements and industry standards.

Banks must adhere to the Financial Industry Regulatory Authority (FINRA) Rule 4370, which spells out the required BCP procedures.

Compliance with Financial Regulations

Banks must ensure that their BCP is appropriate to the scale and scope of their operations and adheres to financial regulations.

Compliance with financial regulations is crucial for banks to maintain their reputation and avoid regulatory penalties. Banks must identify potential risks and develop a BCP to mitigate those risks and ensure continuity of operations.

Banks must also ensure that their BCP meets the objectives of financial regulations . The objectives of financial regulations include protecting customers’ interests, maintaining the financial system’s stability, and preventing financial crimes.

compliance, risk culture

Adhering to Industry Standards

Banks must adhere to industry standards to ensure that their BCP is effective and meets the requirements of regulators.

Industry standards provide guidance on the development and implementation of BCPs, including risk assessment , technical solutions, HR and training, and a Business Impact Analysis (BIA).

Banks must also ensure their vendors or third-party service providers maintain a BCP. Exit strategy plans are developed by front-line units and control functions to ensure that the bank can continue to operate during a crisis.

Banks must comply with financial regulations and adhere to industry standards to develop an effective BCP . Compliance with financial regulations and industry standards is essential for banks to maintain their reputation, avoid regulatory penalties, and ensure continuity of operations.

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Chris Ekai is a Risk Management expert with over 10 years of experience in the field. He has a Master’s(MSc) degree in Risk Management from University of Portsmouth and is a CPA and Finance professional. He currently works as a Content Manager at Risk Publishing, writing about Enterprise Risk Management, Business Continuity Management and Project Management.

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Business continuity planning at central banks during and after the pandemic

Report by the Consultative Group on Risk Management (CGRM) established at the BIS Representative Office for the Americas

In August 2021 the Consultative Group on Risk Management (CGRM) set up a task force to examine how Business Continuity Planning (BCP) at BIS member central banks in the Americas has changed since the beginning of the Covid-19 pandemic. This report is the outcome of the work of the task force. Its findings might help central banks in the region and beyond to adjust their BCP to the new risks that emerged from the pandemic and the new ways of working that might outlive it.

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Business Continuity

Valuable components for your bank’s business continuity and disaster recovery plan.

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The COVID-19 pandemic tested how prepared organizations were for the unexpected. Even before the pandemic, organizations needed to be ready for any number of potential disasters, both natural and man-made.

The best way for community banks to address and manage unforeseen risks is to create a comprehensive business continuity and disaster recovery (BCDR) plan . This blog will provide insight into the critical components for any community bank disaster recovery plan, aiming to help bank owners and IT teams ensure their organization is ready for anything.

Why Are Business Continuity and Disaster Recovery Plans Vital for Banks?

Banking institutions play a pivotal role in the global economy, handling trillions of dollars in transactions every day. As such, any disruption to their operations can have far-reaching consequences, affecting not only the institution itself but also the financial system’s stability.

A bank disaster recovery plan is the lifeline that ensures your company’s ability to continue its essential functions, deliver services to customers, and protect sensitive data in the face of unforeseen disasters.

The Unique Vulnerabilities and Risks Faced by Banks

Does your bank have the infrastructure to fight against cyberattacks, which target financial companies 300 times more than other institutions? Have you factored in the risk of a natural disaster disrupting your operations, especially if your bank is located in an area with a high rate of seismic activity or on a coastline? What about financial-specific risks such as market volatility or fraud, which can quickly spiral out of control if not properly managed?

Banks are exposed to a multitude of unique vulnerabilities and risks, ranging from cyberattacks and natural disasters to economic downturns and operational failures. Unlike many other businesses, banks hold sensitive customer data and are subject to stringent regulatory oversight, amplifying the consequences of any disruptions.

Here is a closer look into the unique challenges banks like yours face when it comes to disaster preparedness.

Regulatory Requirements

Regulators recognize the critical role that banks play in the economy and have established strict requirements for BCDR planning. Compliance with these regulations is not optional; it is a legal obligation.

Banks must adhere to guidelines set by entities like the Federal Deposit Insurance Corporation ( FDIC ), the Office of the Comptroller of the Currency ( OCC ), and others. Failure to do so can result in substantial fines and reputational damage.

Data Security and Customer Privacy

Data incidents can have catastrophic consequences for banks, leading to financial losses and reputational damage. A robust BCDR plan should prioritize data security and customer privacy. Encryption, access controls, and secure backup solutions are crucial in safeguarding sensitive information.

Operational Dependencies

Banks rely on a complex web of operational dependencies, including technology systems, third-party vendors, and key personnel. Identifying and mapping these dependencies is a critical step in BCDR planning.

In the event of a disruption, a comprehensive understanding of these dependencies enables banks to allocate resources effectively and maintain critical operations.

What Is the Role of Business Impact Analysis (BIA)?

A Business Impact Analysis (BIA) is a fundamental component of bank disaster recovery planning. It involves a systematic assessment of the potential impact of disruptions on business operations. For banks, a BIA should examine the financial implications, regulatory compliance, customer service, and reputational risks associated with various disaster scenarios.

What Is the Process of Risk Assessment for Banks?

Risk assessment for a bank involves a systematic process that identifies, analyzes, and evaluates the risks associated with an organization’s operations. The goal of this process is to understand how different threats, both internal and external, might affect the bank’s ability to function.

  • Identify Potential Risks: This can include cyber threats, physical disasters (fire, flood, earthquakes), operational risks (system failure, process error), legal and compliance risks, and more. 
  • Analyze Risks: Risks are analyzed in terms of their potential impact on the bank’s operations and the likelihood of their occurrence.
  • Evaluate Potential Severity: Each risk is evaluated in terms of financial loss, disruption of services, reputational damage, and regulatory penalties. A risk matrix can be a useful tool in this step, plotting the severity of impact against the likelihood of occurrence for each identified risk.
  • Prioritize Risks: This is done based on their potential impact and likelihood. This helps the bank to focus its efforts on managing the most significant risks first.
  • Establish Risk Thresholds and Create a Risk Appetite Statement: This defines the level of risk that the bank is willing to accept. 

A regular review and update of the risk assessment is crucial, as the risk landscape can change rapidly due to technological advances, changes in the business environment, or regulatory updates.

To complete the risk assessment, the bank needs to document all the processes, make the findings accessible to relevant stakeholders, and integrate the outcomes into the bank’s BCDR planning process. This ensures that the bank’s disaster recovery strategies are aligned with the identified risks and their potential impact.

Valuable Components in a BCDR Plan

To create an effective bank disaster recovery plan tailored to the unique challenges of your industry, consider the following key components :

1. Emergency Response Plan

Define clear roles and responsibilities for staff during emergencies and establish communication protocols.

2. Data Backup and Recovery

Implement robust data backup solutions and ensure the ability to recover data quickly in case of loss.

3. Alternate Worksite

Identify and equip alternate worksites where essential banking operations can continue if the primary location is compromised.

4. Supplier and Vendor Risk Management

Assess the BCDR capabilities of third-party vendors and suppliers who provide critical services to the bank.

5. Testing and Training

Regularly test the BCDR plan through drills and exercises, and provide training to staff to ensure they are prepared to respond effectively during a crisis.

6. Continuous Monitoring and Improvement

BCDR planning is an ongoing process. Regularly review and update the plan to adapt to evolving threats and changes in the banking environment.

A well-crafted BCDR plan is not just a regulatory requirement; it is a strategic imperative for banks. By investing in comprehensive BCDR planning , bank owners and IT managers can protect their institutions from a wide range of threats and ensure the continued trust and confidence of their customers.

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Deutsche Bank

Business Continuity Management Program

Deutsche Bank Business Continuity Program: U.S. Broker-Dealers

In 2004, the Securities and Exchange Commission approved NASD Rules 3510 and 3520 and NYSE Rule 446, which require member firms to create and maintain business continuity plans. NASD Rules 3510 and 3520 have since been superseded by FINRA Rule 4370. In accordance with these rules, a business continuity plan will enable the firm to continue its business in the event of a significant business disruption or, in the alternative, conduct an orderly wind-down of operations.

On this page, clients of Deutsche Bank’s U.S. broker-dealers (Deutsche Bank) will find information on Deutsche Bank’s commitment to these obligations and highlights of our Business Continuity Program.

Deutsche Bank Business Continuity Program

Effective business continuity measures are critical for any business entity. Deutsche Bank is committed to protecting its staff and ensuring the continuity of critical businesses and functions in order to protect the Deutsche Bank franchise, mitigate risk, safeguard revenues and sustain both a stable financial market and customer confidence. The development, implementation, testing and maintenance of an effective global Business Continuity and Disaster Recovery program are required to sustain these objectives.

To further our commitment in the event of a significant business disruption, as well as meet all regulatory requirements, Deutsche Bank’s infrastructure includes a Business Continuity Management (“BCM”) group that is an integral part of Deutsche Bank's normal business operations. BCM plans, tests, and manages crises concerning business lines and functions’ relocation and recovery.

Ten Critical Components

Our plans to ensure business continuity address the ten key areas FINRA and NYSE stated must be addressed:

  • Data back-up and recovery (hard copy and electronic) – identification of the location of primary books and records (hard copy and electronic) and the location of back-up books and records (hard copy and electronic). In addition, firms must be prepared to describe how they back up data, as well as how they will recover data in the event of a significant business disruption.
  • All mission critical systems – systems that are necessary, depending on the nature of a member's business, to ensure prompt and accurate processing of securities transactions, including, but not limited to, order taking, order entry, execution, comparison, allocation, clearance and settlement of securities transactions, the maintenance of customer accounts, access to customer accounts and the delivery of funds and securities.
  • Financial and operational assessments – written procedures that allow a firm to identify changes in its operational, financial, and credit risk exposures. Operational risk focuses on the firm's ability to maintain communications with customers and to retrieve key activity records through its "mission critical systems." Financial risk relates to the firm's ability to continue to generate revenue and to retain or obtain adequate financing and sufficient equity. Firms may also face credit risk (e.g., where its investments may erode from the lack of liquidity in the broader market), which would also hinder the ability of the firm’s counter-parties to fulfill their obligations.
  • Alternate communications between customers and firm – alternate means of communications that a firm will use to communicate with its customers in the event of a significant business disruption.
  • Alternate communications between firm and its employees – alternate means of communications that a firm will use to communicate with its employees in the event of a significant business disruption.
  • Alternate physical location of employees – alternate locations must be designated for employees, including key personnel that have been identified to assist in the resumption of business operations.
  • Critical business constituents, banks, and counter-party impact – effect a significant business disruption will have on a firm’s relationship with its critical business constituents, banks, and counter-parties, and how it will deal with those impacts.
  • Regulatory reporting – available means a firm can use to continue its compliance with regulatory reporting requirements.
  • Communications with regulators – communication with regulators through whatever means are still available, including the designation of business continuity plan contacts with FINRA to assist in these communications.
  • Providing customers prompt access to their funds and securities – measures a firm will use to make customer funds and securities available to customers in the event of a significant business disruption.

Our client commitment statement is available to clients in our Business Continuity Program Letter .

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  1. PDF Business Continuity

    Learn how Bank of America can help you prepare for an emergency or unexpected event that may impact your treasury operations. Find out how to contact your treasury representative, customize your business continuity plan, and access online reporting and other critical services.

  2. Business Continuity Planning (BCP)

    FINRA requires firms to create and maintain written business continuity plans (BCPs) relating to an emergency or significant business disruption. Learn about the required BCP procedures, the BCP disclosure, and the lessons from the COVID-19 pandemic.

  3. Business Continuity Planning for Banks

    Learn the objectives, importance, and components of business continuity planning for banks and how to prepare for various types of disruptions. Find out how to conduct a business impact analysis and develop strategies to restore critical functions and information systems. Download a free checklist to create your own plan.

  4. 12-Point Bank Business Continuity Plan [Checklist, Tips & FAQ]

    A bank business continuity plan (BCP) is a document that outlines the protocols for recovery and prevention of various disasters that affect the bank's operations. Learn the 12-point checklist of essential components, tips and FAQs for creating a comprehensive BCP for your bank.

  5. The Ultimate Guide To Business Continuity Management for Banks and

    Learn how to develop a compliant and resilient business continuity management plan (BCMP) for your financial institution, including pandemic planning, vendor management, and risk assessment. The FFIEC's updated BCM guidance requires you to consider technology, business operations, testing, and communication strategies that are critical to business continuity.

  6. PDF Business Continuity Planning Booklet

    Business continuity planning is the process whereby financial institutions ensure the maintenance or recovery of operations, including services to customers, when confronted with adverse events such as natural disasters, technological failures, human error, or terrorism.

  7. BCP in Banking

    A business continuity plan for financial institutions focuses on the risk mitigation and preparedness stages. You will review your exposures, threats, and risks as you learn how to prepare for them. Achieve Stability and Resilience With a BCP in Banking

  8. PDF Business Continuity Management

    In keeping with Bank of America's focus on resiliency in the face of a business disruption, all business continuity plans include procedures for addressing temporary unavailability of staff during such events to include natural disasters, pandemics, unplanned outages, etc. Facilities

  9. Business Continuity Resource Center

    How to Access and Navigate Service Status (Off-site) Business Continuity Guides During a disruption, Federal Reserve staff members work to ensure the highest possible level of service. Successful operations will require both coordination and cooperation between financial institutions and Federal Reserve staff.

  10. PDF Business continuity planning at central banks during and after the pandemic

    Business continuity planning at central banks during and after the pandemic April 2022 BIS Representative Office for the Americas This publication is available on the BIS website ( www.bis.org). © Bank for International Settlements All rights reserved. Brief excerpts may be reproduced or 2022. translated provided the source is stated. ISBN

  11. Pandemic Planning: Updated FFIEC Guidance

    Highlights. The guidance. explains the difference between traditional business continuity planning and pandemic planning. reminds banks of the traditional phases of business continuity planning (planning, preparing, responding, and recovering) and states that pandemic planning requires additional actions to identify and prioritize essential functions, employees, and resources.

  12. A Business Continuity Plan Checklist for Banks, for COVID-19 ...

    COVID-19 is here to stay, and banks need a business continuity plan checklist. This includes reassessing cash-flows, credit risks and liquidity positions; identifying new digital banking opportunities; and adjusting to a sustainable remote-work environment. ... For banks and other financial institutions, that means creating or reviewing a ...

  13. Business Continuity Plan Template for Financial Services

    This Business Continuity Plan for Financial Services template is designed for banks, financial institutions, and other organizations in the financial services industry who need a comprehensive plan for addressing potential risks and disruptions to their operations. The template outlines the steps needed to develop an effective BCP, including ...

  14. PDF Business Continuity Planning

    How you can prepare Being prepared for business disruptions is your best defense when the unexpected happens. We can help you prepare to continue important banking activities if you don't already have a plan in place. As we work with you, you'll want to consider the following:

  15. What Is a Business Continuity Plan (BCP), and How Does It Work?

    A business continuity plan (BCP) is a system of prevention and recovery from potential threats to a company. The plan ensures that personnel and assets are protected and are able to...

  16. Banking on resilience: PwC

    Bank regulators are expanding the old business continuity planning and disaster recovery (BCP/DR) model to encompass all aspects of resilience (ie. operational and cyber), effectively setting a new bar for regulated entities. Rethinking resilience As Financial services (FS) regulators around the world shift their focus, PwC has done the same.

  17. Business continuity planning in banking and finance

    Business Continuity Planning (BCP) is essential for banks to remain resilient during crises and comply with regulatory requirements. BCP should include risk assessment, technical solutions, HR & training, and a Business Impact Analysis (BIA). The role of Business Continuity Plans in banking

  18. How To Develop a Bank Business Continuity Plan

    How to Develop a Business Continuity Plan for Your Bank. There are a few key steps that you will need to take to develop a bank business continuity plan. Assess your risks: The first step is to assess the risks that could potentially disrupt your bank's operations. This includes identifying both external and internal risks.

  19. Business Continuity Plan Template for Retail Banks

    This Business Continuity Plan template is designed for retail banks and other financial institutions to help them develop their own business continuity plans. These plans are essential to ensure the continuity of banking operations, customer services, and financial transactions during emergencies or disruptions. 1.

  20. Business Continuity Plan In Banks: Ensuring Uninterrupted Operations

    February 1, 2024 Written By Chris Ekai A Business Continuity Plan (BCP) in banks is a strategic framework that ensures uninterrupted operations and service delivery during and after a disaster or crisis. Banks need to remain resilient during crises and comply with regulatory requirements.

  21. Business continuity planning at central banks during and after the pandemic

    In August 2021 the Consultative Group on Risk Management (CGRM) set up a task force to examine how Business Continuity Planning (BCP) at BIS member central banks in the Americas has changed since the beginning of the Covid-19 pandemic. This report is the outcome of the work of the task force. Its findings might help central banks in the region ...

  22. Ten Steps to An Effective Business Continuity Plan

    A Business Continuity Plan (BCP) is the process whereby financial institutions ensure the maintenance or recovery of operations, including services to customers, when confronted with adverse ...

  23. Business Continuity Management for Banks

    Business Continuity Management for Banks Disaster recovery for banks was a plan written to help the bank recover in the event of a natural disaster. ... Business Continuity Plan; Training & Testing; Review & Reporting; Rev-Jul. 2020. Course Length ≈ 40 minutes. This course is worth 0.5 CPE credit. ICBA Member - $179.00 Non-Member - $299.00 ...

  24. Valuable Components for Your Bank's Business Continuity and Disaster

    The best way for community banks to address and manage unforeseen risks is to create a comprehensive business continuity and disaster recovery (BCDR) plan. This blog will provide insight into the critical components for any community bank disaster recovery plan, aiming to help bank owners and IT teams ensure their organization is ready for ...

  25. Business Continuity Program

    Effective business continuity measures are critical for any business entity. Deutsche Bank is committed to protecting its staff and ensuring the continuity of critical businesses and functions in order to protect the Deutsche Bank franchise, mitigate risk, safeguard revenues and sustain both a stable financial market and customer confidence.