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Business continuity a growing concern in financial industry

Banks often ignore business continuity in favor of more immediate crisis mitigation demands.
Banks often ignore business continuity in favor of more immediate crisis mitigation demands.

Banks are by and large ignoring key business continuity needs, some experts warn. According to Risk.net, the trend is increasing, which is putting more financial institutions at risk, especially those operating on global markets.

"Business continuity is one of those concepts that is never placed at the top of the agenda because it's considered to be such low likelihood," Sam Isaacson, senior manager of financial services risk and advisory practice for BDO, an accountancy networking firm, told the source. "People like to ignore it. I think it's consistent throughout the market. When you're in a situation like this where there is greater awareness of it, then it naturally raises itself further up the top of the board level agenda. It most likely puts itself into a position where it really ought to be discussed more regularly."

The issue is that banks don't recognize the importance of disaster recovery due to the plethora of more immediate risks they face on a daily basis, such as geopolitical climates and global economic issues.

Isaacson recommends that banks focus on business continuity planning, and the impact of their strategy on local communities, as well as the areas they do business with on a regular basis. Lessons could even be learned from IT corporations, he noted, such as a major Russian IT firm moving its base of operations to Switzerland recently, due to the increased political tension between Russia and the West.

Banks should consider bringing on expert business continuity advisors and consultants to optimize their approach to continuity of operations planning, as well as risk avoidance in general. The right expert can minimize business impact and optimize the protection of core systems, and the economy.