Business continuity planning
Business continuity planning (BCP) is an integrated framework of measures intended to enable an institution to continue its critical operations (i.e. ICT and operations) in case of incidents. Since the events of 11 September 2001, the area of BCP and crisis management has seen rapid and momentous developments.
Continuity requirements
Institutions within the financial core infrastructure traditionally focus on risk management and the protection of their systems and critical operational processes. Underpinning their efforts are continuity requirements as set down in:
- the – generally accepted worldwide – Core Principles for Systemically Important Payment Systems (particularly CP VII: Security and operational reliability)
- the Recommendations for securities settlement systems (Recommendation 11: Operational reliability) and for central counterparties (Recommendation 7: Operational risk)
- Order in Council 5. An Englisch translation will be made available. The Dutch version (Algemene Maatregel van Bestuur 5: Besluit prudentiële regels Wft ) can be found on our website.
Fleshing out the framework
In consultation with the Dutch market parties that make up the core infrastructure of Dutch payment and securities systems the Assessment Framework for Business Continuity Planning (BCP) Financial Core Infrastructure was agreed on. The standards of this framework take into account not only the risk of technical and/or organisational failure, but also the ability to absorb natural disasters and calamities resulting from deliberate human actions (including terrorism). These are recommendations which institutions, supervisors and overseers could use.
The assessment framework pays explicit attention to the human factor and the business continuity plan for the entire system of payment and securities. After all, the institutions making up the core infrastructure depend on each other. DNB has the initiative in emergency plans for the sector and will, in case of a large-scale incident, act as crisis coordinator for payment and securities systems.
