The UK’s chief financial watchdog, the Financial Services Authority (FSA), has called on the 12,000 firms it regulates to keep business continuity as a priority.Specifically, the FSA called for the chief executives of the top 40 firms whose interruption of business could cause systemic risk to report how they measure up to best practice guidelines drawn up by the FSA, the UK Treasury and the Bank of England.
The FSA, which has revamped its own business continuity planning since the September 11 attacks on the World Trade Center in New York in 2001, was keen to emphasise that its measures were not “prescriptive”. Some national regulators have introduced a rules-based formula with regard to business continuity planning, such as minimum distances between head offices and back-up sites or having back-up sites manned on a continuous basis.
But the FSA said businesses needed to treat business continuity as a priority and should ensure this operational risk is overseen at a senior executive level. It warned smaller firms about the consequences of neglecting business continuity, with FSA managing director Michael Foot saying: “[If] you cannot withstand an emergency event, then it is essentially your business which is at risk”.
An FSA survey last year found the top 40 firms had made “considerable improvement in their business continuity”.
More on Regulation
NCDEX finds itself in conflict with government clearing house proposals
Regulator set to focus on backtesting and replicability of index products
2015 rules promise oversight increase
Recent Iosco consultation paper aims to better co-ordinate global regulation
Sign up for Risk.net email alerts
Sponsored video: Tradeweb
Multifonds talks to Custody Risk on being nominated for the Post-Trade Technology Vendor of the Year at the Custody Risk Awards 2014
Sponsored webinar: IBM Risk Analytics
Nominated for two technology awards
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.