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 detail.
Vendor and Third-Party Management