Recent events have highlighted the vital importance of robust business continuity plans (BCP) and Disaster Recovery Plans (DRP) across industries. Late last week, a significant outage hit Microsoft's Azure cloud platform, followed by a problematic software update from a major security firm, CrowdStrike. This combination caused widespread issues, including blue screen failures on Windows computers, affecting operations in airports, train systems, banks, healthcare organizations, hotels, and television stations globally. These incidents, although unrelated, collectively triggered the activation of BCPs around the world.Such occurrences emphasize the need for the banking sector to routinely test and update its business resumption plans. Ensuring these plans are effective and up-to-date is crucial for maintaining operations during disruptions, whether they occur on a local, national, or global scale. Community financial institutions (CFIs) must be prepared to handle unforeseen challenges swiftly to continue providing services and protecting their clients' trust. Thinking Ahead Of course, bankers are familiar with both BCPs and DRPs since financial institutions are required to have one. However, given recent events, it’s important to remember that a “set-it-and-forget” approach could leave you in a stressful situation if your team isn’t regularly reviewing your existing plans. Your business resumption plans should be continuously revisited to ensure that they are up to date and adequately reflect your organization’s potential risks. Similarly, it is important to ensure that recovery plans are function-based and broad enough to be successful in any sort of disaster, covering all potential problems from a natural disaster to a global pandemic. When reviewing your existing BCP and DRP documents, here are eleven practical tips to help ensure your plans can remain as effective as possible:
- Conduct Regular Simulations. Periodically simulate various disaster scenarios to test the effectiveness of your BCP and DRP. This helps identify potential weaknesses and areas for improvement.
- Update Contact Information. Ensure that contact information for key personnel and external partners is always up-to-date. This is crucial for effective communication during a disruption.
- Review Vendor Resilience. Assess the continuity plans of your critical vendors and partners. Ensure they have robust BCPs in place to minimize the impact on your operations.
- Ensure Redundancy. Implement redundancy for critical systems and processes to avoid single points of failure. This includes having backup systems, alternative workflows, and contingency service providers. In this recent example, PCBB was up and running ahead of many other companies, and in doing so, was able to serve as a contingency backup for processing domestic and foreign payments on behalf of its customers.
- Diversify Communication Channels. Establish multiple communication channels (e.g., email, phone, messaging apps) to ensure information can be disseminated quickly and effectively during an emergency.
- Back-Up Critical Data. Regularly back up critical data and ensure it is stored securely and accessible in the event of a disaster. Consider using both on-site and off-site storage solutions.
- Train Staff Regularly. Provide ongoing training for all employees on their roles and responsibilities within the BCP and DRP. Familiarity with the plan ensures a quicker and more efficient response.
- Evaluate Technological Advances. Stay informed about the latest technological advancements in disaster recovery and business continuity. Implementing new technologies can enhance your organization's resilience.
- Perform Post-Incident Reviews. After any incident, conduct a thorough review to assess what worked well and what did not. Use these insights to refine and improve your plans.
- Maintain Clear Documentation. Keep clear and detailed documentation of your BCP and DRP, making it easily accessible to all relevant personnel. This ensures everyone knows where to find the plan and how to follow it.
- Remain Vigilant. After major events whether natural disasters or man-made, CFIs should be in a heightened state of awareness. Threat actors will attempt to use these events as a lure to obtain sensitive data. CFIs should also be aware of Fear, Uncertainty and Doubt (FUD) from vendors stating that their “products” would have or will prevent these events going forward.
In an era where digital infrastructure is increasingly intertwined with every facet of business, the importance of robust and well-maintained business continuity and disaster recovery plans cannot be overstated. The recent dual incidents involving a major cloud outage and a flawed software update serve as stark reminders of the unpredictable nature of such disruptions. For the banking sector, where trust and reliability are paramount, regularly testing and updating BCPs is not just a regulatory requirement but a fundamental practice to ensure operational resilience and client trust. By incorporating practical tips and continuously refining their plans, CFIs can better prepare for any eventuality, safeguarding their operations and maintaining the trust of their clients in an ever-changing technological landscape.
