Resilience Benchmarking Project Discussion Paper published

The Tripartite Authorities have published a report which presents the findings from the latest Resilience Benchmarking Project. This aimed to assess the progress the financial sector has made in enhancing its resilience since the first Resilience Benchmarking Project in 2005, and to ‘consider whether any new issues had emerged that needed to be addressed’.

Writing in the foreword of the document, Callum McCarthy, chairman of the Financial Services Authority states:

“The results of the project are encouraging. Overall, the resilience of the sector continues to improve. As such it remains our view that we do not at this stage need to become more prescriptive in our regulatory approach to business continuity management. Nonetheless, although the overall outcome is positive, there were significant variations between the results of individual participants which, as in 2005, will be followed up bilaterally as part of the normal supervisory processes.

“One broad area of concern is that the results suggest senior management is paying less attention to the risks of major operational disruption than was the case in 2005. This is understandable given that the 7 July terrorist attacks on London occurred part way through the first benchmarking project. The sharp deterioration in the global financial environment since last summer also helps explain why senior management’s focus may be elsewhere. Nevertheless, it is important that senior management ensure their organisations develop appropriate plans to deal with the consequences of a major operational disruption such as terrorist attack or pandemic, both of which continue to be assessed as significant risks, and support individual and collective efforts to improve the sector’s preparedness.”

The tripartite authorities are seeking comments on the report and its proposals. Feedback is required by 30 September 2008 and a feedback statement will be published in December 2008.

Read the paper (PDF).

•Date: 17th June 2008• Region: UK •Type: Article •Topic: Financial sector BC
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