Banking, financial services, and insurance firms along with their regulators are becoming increasingly determined to focus on operational resilience and BCM. The increasing dependency that ...
Banking, financial services, and insurance firms along with their regulators are becoming increasingly determined to focus on operational resilience and BCM. The increasing dependency that the segment has on complex systems, third parties, automation, and technology has led to an obsession to eliminate failure or outages in the first place. Thus, the marketplace can hold companies accountable for experiencing disruptions, which puts their reputation at risk. The BFSI (banking, financial services, and insurance) segment has developed a certain expectation to deliver its services without any failure or delay.
Business continuity strategies inclusive of crisis management and disaster recovery help financial companies swiftly respond to and recover from the event of disruptions seamlessly. Keeping evolving crises in mind, it’s crucial for companies of every segment to deploy an infallible business continuity management plan. Although, for financial enterprises, it is paramount given the amount of dependency it carries on other domains.
BFSI has always been and will continue to be susceptible to the challenges of resiliency, technological disruptions, and security. On top of that, the pressure to ensure real-time and round-the-clock services have made the situation even worse. The surging evolution of technologies is the foremost reason behind the challenges but brings solutions as well.
Business Continuity Management Software isn’t a new concept. Companies have been around it for a while but usually for accomplishing regulatory compliance. But, not to the surprise, the software can be a lifesaver for businesses during tough times of crises and disasters.
In a financial institution, where any downtime, network outage, or server failure cannot be accepted at any cost, active measures must be taken to ensure uninterrupted operations.
Integrating continuity systems can establish resilience and improve it over time.
Although the reasons to adapt operational resilience are obvious, it is worth considering why
5 Ways Operational Resilience Can Be a Gamechanger for your Finance Organization
Deutsche Bank faced a civil monetary penalty of $9 million due to an inefficient disaster recovery plan in 2016. The bank witnessed a swap reporting platform failure. The Bank failed to report and reflect the data properly for the next 5 days. Thus, massing the fine for breaching reporting requirements. However, if the bank had equipped an up-to-date business continuity management platform, things would have been different. A crisis management strategy for tracking, scrutinizing, and notifying the reporting platform outage, in real-time, would have saved them.
Resiliency and security remain top concerns for finance providers. As technology grows more complex, maintaining real-time operations becomes increasingly challenging. However, adopting operational resilience for financial institutions as a lifestyle can save businesses from disruptions and create opportunities.