Business continuity is a collective challenge

KPMG has published a new white paper ‘Living on the Frontline’, which explores business continuity issues related to the financial sector. According to KPMG, the dense concentration of financial services firms within high-profile cities such as London and New York and the highly interdependent supply chain has put the sector on the business continuity frontline.

The paper concludes that becoming a ‘resilient organisation’ is now the ultimate goal and that this cannot be achieved in isolation.

Rick Cudworth, Leader of KPMG’s Global Centre of Excellence for Business Continuity explains: “According to the Global Risks Report 2007, published by the World Economic Forum, the financial sector must build individual and collective resilience. The ‘I’m alright Jack’ mentality is a thing of the past, now more than ever they need to stick together. With the nature of global threats, a successful response depends on co-ordination and investment in protective measures by all.”

Developing a ‘resilient organisation’ is achieved by addressing three mutually dependent challenges: people or the ‘human factor’, diversity of approach, and co-ordination and collaboration across the financial services sector.

Key factors include:

* Co-ordinate with the regulator to enable benchmarking and engage with market-wide exercises. For example, the UK Tripartite Authorities, led by the Financial Services Authority have shown the way in promoting a programme of benchmarking and market-wide exercises; Singapore has recently followed suit, as business continuity evolves and responds to the global challenge.

* Develop an effective and holistic continuity strategy to satisfy the regulatory environment, and protect all stakeholders, from employees and investors, to clients and suppliers, in the light of evidence, from major catastrophes such as July 7 attacks on London and Hurricane Katrina. This will include significant, consistent and pro-active investment by financial services’ companies into planning.

* Maintain flexibility and simplicity at the heart of business continuity arrangements to ensure integration into everyday business, regular testing of plans, and consideration of the organisation within the context of the wider world

* Increase knowledge sharing across business continuity professionals, including the ability to work within financial services’ highly regulatory environment.

www.kpmg.co.uk

•Date: 12th April 2007 • Region: UK •Type: Article •Topic: BC general
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