The financial sector consists of many interconnections between different markets, systems, participants and service providers. Failure, slowdown or interruption of the work of a financial institution or one of its service providers as a result of operational incidents may jeopardize its ability to fulfill its obligations to its customers and partners, and may even, in some cases, destroy the financial system through infection.
Given these interdependencies and the complexity of the financial sector, financial institutions should adopt sound management practices to ensure business continuity after an operational incident. Business continuity management is a priority for the rational management of operational risk.
Business continuity management is to set up processes to identify key operational incidents that could threaten a financial institution, such as natural disasters, power outages, power outages, computer outages, piracy and terrorism, epidemics, etc. Identifying these incidents allows assess their impact on the institution and take the necessary mitigation measures to ensure the continuity of critical activities.
The purpose of this guide is to describe expectations for business continuity management. Various industry laws administered by the Authority authorize financial institutions to provide guidance, which may include sound management practices. The principles of business continuity management proposed by AMF are based on the terms of reference. This framework offers a collaborative approach to ensure consistency and complementarity of continuity management. This approach includes, but is not limited to, government agencies, healthcare organizations, and any other organizations or institutions that provide essential products or services. This guide also draws on the guidelines of the Banking Supervisory Committee, the International Association of Insurance Supervisors and the Joint Forum for sound risk management and business continuity.
AMF recognizes that the choice of financial management of the business continuity process depends on several factors, such as its size, nature and complexity of its activities. Despite the various processes adopted by financial institutions, an effective business continuity management process should be based on the principles proposed below, such as a clear formulation of the succession strategy and the participation of senior management. and board of directors.
The business continuity management process should also take into account the nature and significance of operational incidents identified by the institution. This manual only covers major operational incidents. In determining the degree of continuity management, an institution may rely on a risk-based approach. This approach allows you to evaluate various incidents based on, in particular, their likelihood of occurrence and their severity, and establish treatment priorities.
This prioritization is based on the time needed to resume operations and the significance of the effects that will be caused by their interruption. The facility can then determine the minimum level of service and acceptable break time. Failure to provide essential products and services can have serious implications for an institution’s reputation. Business continuity management is an effective way to solve this problem.
This article proposes the principles of risk management services, which contribute to the strict and effective management of business continuity of financial institutions based on a systematic and structured approach. These principles are also intended to promote the use of an integrated, ongoing and integrated approach to risk management of a financial institution. In essence, the proposed principles relate to the organization of continuity management, identifying major operational incidents, assessing their impact on mission-critical activities of the institution, and planning for continuity management.
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