Introduction

The “Business Continuity Management” (BCM) booklet is one in a series of booklets that comprise the Federal Financial Institutions Examination Council (FFIEC)The FFIEC was established on March 10, 1979, pursuant to Title X of the Financial Institutions Regulatory and Interest Rate Control Act of 1978, Pub. L. 95-630. The FFIEC members include the Board of Governors of the Federal Reserve System (FRB), the Consumer Financial Protection Bureau (CFPB), the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration (NCUA), the Office of the Comptroller of the Currency (OCC), and the State Liaison Committee (SLC). Information Technology Examination Handbook (IT Handbook). The IT Handbook is prepared for use by examiners.Each FFIEC member agency may use the principles outlined in this booklet, consistent with the member agency’s supervisory authority. With the publication of this booklet, the FFIEC member agencies replace the “Business Continuity Planning” booklet issued in February 2015. The change from business continuity planning to business continuity management reflects the changes in customer and industry expectations for the resilience of operations.

The BCM booklet describes principles and practices for IT and operations for safety and soundness, consumer financial protection, and compliance with applicable laws and regulations. The BCM booklet also outlines BCM principles to help examiners evaluate how management adresses risk related to the availability of critical financial products and services. This booklet discusses BCM governance and its related components, including resilience strategies and plan development; training and awareness; exercises and tests; maintenance and improvement; and reporting for all levels of management, including the board of directors.

The focus of this revised booklet is on enterprise-wide, process-oriented approaches that consider technology, business operations, testing, and communication strategies critical to the continuity of the entire entity. However, business continuity should not be focused only on the planning process to recover operations after an event, but rather it should include the continued maintenance of systems and controls for the resilience of operations. Business continuity should be incorporated into the risk management life cycle of all systems, processes, and operations of an entity.

For IT Handbook purposes, the term “entities” includes depository financial institutions,The term “depository financial institution” includes national banks, federal savings associations, state savings associations, state member banks, state nonmember banks, and credit unions. nonbank financial institutions,The term “nonbank financial institution” includes non-depository financial institutions under CFPB’s jurisdiction and subject to CFPB supervision and examination. bank holding companies,The term “bank holding company” includes any company which has control over any bank or over any company that is or becomes a bank holding company as defined by the Bank Holding Company Act. and third-party service providers.The term “third-party service providers” includes those entities that provide banking services subject to examination under the Bank Service Company Act, the Home Owners Loan Act of 1933, the Dodd-Frank Wall Street Reform and Consumer Protection Act, or other relevant law. This booklet does not impose requirements on entities. Instead, this booklet describes practices that examiners may use to assess an entity’s BCM function.

Appendix A of this booklet provides objectives-based examination procedures. The application of the principles and related examination procedures should vary according to an entity’s complexity and risk profile. Examiners should evaluate entities in accordance with their agency’s regulatory authority.

 

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I Business Continuity Management