Welcome » IT Booklets » Wholesale Payment Systems » Wholesale Payment Systems Risk Management » Operational (Transaction) Risk » Business Continuity Planning (BCP)
Financial institutions should recognize their role in supporting
systemic financial market processes (e.g., inter-bank payment
systems and key market clearance and settlement activities) and
understand that service disruptions at their institution may
significantly affect the integrity of key financial markets.
Critical markets include, but are not limited to, the markets
for federal funds, foreign exchange, commercial paper, and
government, corporate, and mortgage-backed securities. Firms
that play significant roles in critical financial markets are those
that participate in sufficient volume or value such that their
failure to perform critical activities by the end of a business day
could present systemic risk (see Appendix F).
In addition, financial institutions should coordinate BCP
development and testing with all applicable third parties.
All financial institutions, especially those that play a
major role in critical financial markets, are expected to have
sufficient business continuity plans, commensurate with their funds
transfer activities. Financial institutions should also
coordinate testing with other industry participants. Refer to
IT Handbook's Business Continuity Planning Booklet for more