DataMonitor research finds financial sector business continuity divide

New research carried out by DataMonitor Research on behalf of from Mitel has found that over half (52 percent) of City firms surveyed have no plans in place to deal with the outbreak of a pandemic.

On the face of it, this is a surprising figure given the recent focus of the Tripartite Authorities on the issue of business continuity planning for a pandemic scenario and the comprehensive exercise that was carried out in November (see http://www.continuitycentral.com/news02920.htm). However, there is a divide in the financial services sector as to those who are more organised than others. While over eight in 10 (85 percent) corporate banking firms are confident they have plans in place in the event of their normal working site being unavailable, city traders and brokers are the worst prepared with 45 percent not clear on how they would work if their site was shut down.

Brokers and traders are also the least prepared in the financial services sector for the risk from fire (55 percent had no plans) and threat of terrorist attacks (50 percent). This is surprising given the high stakes involved on the trading floor where fortunes can change dramatically in a matter of minutes. Being out of action, even for a couple of hours, due to an unforeseen emergency, could have a significant impact on a firms’ bottom line.

Other findings were:

• When it comes to IT systems over a third (36 percent) of respondents confessed to not planning for a major failure.
• 44 percent said they had not planned how they would operate in the event of their normal working site being unavailable.

Ian Bevington, vertical marketing specialist at Mitel, said: “Whilst financial services organisations are amongst the best prepared, this research suggests that their plans have not been developed to cover the increasing threat of terrorism and a pandemic. This should be a high priority for businesses in all sectors, and the importance of having sound business continuity plans in place should not be underestimated.

“The majority of financial services organisations are not fully exploiting the wealth of technology now available to support remote and flexible working. It is crucial to invest in a sound IT infrastructure so that employees can continue to work in the best possible way in the event of a disaster and minimise the impact on productivity and profitability.”

www.mitel.com

•Date: 15th Feb 2007 • Region: UK •Type: Article •Topic: Financial sector
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