TOPIC: Business Continuity

Business Continuity Management: 7 Areas to Evaluate Part-Way Through A Pandemic

In a quickly changing environment, it’s possible that a plan that covered all the bases last month needs to be altered to address new factors. Is your BCP everything you need it to be?https://www.ncontracts.com/integrated-risk-blog/business_continuity_management_7_areas_evaluate_part_way_through_pandemic

    Department-by-Department E-book

    A good COVID-19 response plan does more than preserve access to financial services. It creates value by evaluating and modifying a financial institution’s business model to improve resilience and decrease risk—whether that means introducing new programs or adjusting controls.
    This e-book shows FIs how to assess and manage the operational risks presented by coronavirus to build stronger institutions.
    Learn more HERE

      Coronavirus response: follow along

      Don't forget that we have a topic tag for Coronavirus.  Follow it here to see how other FIs are responding to the crisis in a number of ways:  https://www.cbancnetwork.com/community/topics/view/e634db58-d8a9-480c-ac6c-f97a357f9a8b?icn=dashboard

      Here's an interesting thread where FIs are talking about how they're changing their staffing to respond:  https://www.cbancnetwork.com/community/discussions/view/94628c96-7aa8-493a-81d9-5cf606d2a2be?filter=topic%2Be634db58-d8a9-480c-ac6c-f97a357f9a8b

        BID Article: Leading During A Crisis

        Leading During A CrisisAs we work through continuity plans and manage the uncertainties that loom with COVID-19, leadership is key to ensure customers and employees that we are still there for them. We look at things to help keep everyone calm while reinforcing your commitment to them. READ ARTICLE

          Barclays' Outlook on Coronavirus Impact - Trade, Economy, Banking System Resilience, etc.

          Hi CBANC community! I wanted to share some market insight we received from our banking partner, Barclays. Just one opinion and obviously there's still a lot left to unfold but figured I'd share! Doc attached for download as well. 

          Brief summary of the Barclays coronavirus client call on Friday:

          Macroeconomic
          • Significant reduction in global growth prospects for H1 expected, with impact greatest in particularly vulnerable regions (China, Japan, South Korea, Europe)
          • Most impacted parts of the economy include the travel sector, commodities (particularly oil) and SMEs
          • Ongoing uncertainty about outlook beyond H1, driven largely by uncertain public health forecast and effectiveness of virus containment and economic measures
          • Coordination of monetary and fiscal policy to respond to the crisis is not only encouraged, but also expected (i.e. “baked into” market expectations) – as a result, expect little impact when it does occur but significant adverse impact when it doesn’t (see market response to ECB not reducing rates last week)
          Banking system resilience
          • Banking system is more resilient to respond to a credit crunch due to reforms on bank capital and liquidity requirements put in place in response to the Global Financial Crisis
          • As a result, risk of systemic failure emanating from the financial system have reduced (but not disappeared)
          • Trading floors globally have not been stress tested to a scenario where everyone has to work from home to date; however, in Asia there have been contingency measures in place for the past 4-6 weeks requiring staff to work from multiple locations, with little to no impact on functioning of global capital markets 
          Capital markets
          • Turbulent forecast even prior to coronavirus, due to unstable US/China trade outlook and Brexit
          • In moments of market uncertainty, there is typically a shift towards “save haven” assets (e.g. USD, JPY, gold). However, what we have seen over the past 1-2 weeks is a flight to liquidity (even gold price declined) as institutional investors engage in broad liquidation of their positions in an attempt to manage risk
          • In FX markets:
            • Volatility is back both among G10 and especially emerging markets currencies
            • Emerging markets liquidity has deteriorated over the past 1-2 weeks, trades executed at wider spreads
            • G10 liquidity has been more stable with lower impact on spreads (impact particularly felt on forwards)
          • Last week capped the most turbulent stretch since 2008

          Trade
          • Barclays do not currently see any extraordinary requests about additional working capital – utilisation levels in line with expectations
          • Feedback from corporate clients as follows: (i) lower stock and inventory levels, (ii) lower orders and production levels, (iii) cutbacks in production days, (iv) difficulty in finding additional suppliers to reduce their concentration risk
          • Sporadic but patchy reports that Chinese production is starting to come back to normal; however, these improvements likely to be offset by disturbances to both demand and supply in Western economies that are undergoing lockdowns
          • As this becomes a demand problem, quality of debtors becomes important – likely to result in working capital issues

            BUSINESS RESILIENCY: MANAGING THE RISKS OF COVID-19

            When disaster strikes, you need to know for certain that your business can continue functioning. For financial institutions, this means creating and continually testing your business continuity plan (BCP).  We've created several resources to help you strengthen resilience within your organization and to assist you in not only getting prepared, but staying prepared, for unforeseen events. Resources include: 
            • Blogs
            • Webinars
            • Checklists
            • Regulatory resources
            VIEW RESOURCE PAGE

              MANAGING CORONAVIRUS OPERATIONAL RISK DEPARTMENT-BY-DEPARTMENT FOR COMMUNITY BANKS - TUESDAY, MARCH 24, 2020 @ 12:00 PM CT

              As the coronavirus spreads across the globe, you must assess the risks of the pandemic and what it could mean for your institutions. From sick staff and IT systems to fluctuating financial markets and the need to maintain critical functions, banks need to consider how COVID-19 will impact each major department and business line.

              During this webinar, Michael Berman will discuss how to assess the operational risks coronavirus poses to your bank. From risk management to mitigation controls, the webinar will cover:

              • A department-by-department breakdown of risks to evaluate, including HR, IT, finance, and the front line
              • Forecasting changes in banking behavior and customer needs
              • What regulators have to say about pandemic preparation and testing
              • Determining if your existing BCP plan is adequate
              • How to conduct a pandemic risk assessment
              There will be time for Q&A after the presentation.
               
              REGISTER NOW

                MANAGING CORONAVIRUS OPERATIONAL RISK DEPARTMENT-BY-DEPARTMENT FOR CREDIT UNIONS - THURSDAY, MARCH 19, 2020 @ 2:00 PM CT

                As the coronavirus spreads across the globe, you must assess the risks of the pandemic and what it could mean for your institutions. From sick staff and IT systems to fluctuating financial markets and the need to maintain critical functions, FIs need to consider how COVID-19 will impact each major department and business line.

                During this webinar, Michael Berman will discuss how to assess the operational risks coronavirus poses to your institution. From risk management to mitigation controls, the webinar will cover:

                • A department-by-department breakdown of risks to evaluate, including HR, IT, finance, and the front line
                • Forecasting changes in financial institution behavior and customer needs
                • What regulators have to say about pandemic preparation and testing
                • Determining if your existing BCP plan is adequate
                • How to conduct a pandemic risk assessment
                There will be time for Q&A after the presentation.

                Register Now

                  COVID-19 - Is your Pandemic Plan ready?

                  You already have a rock-solid pandemic plan, right? Of course you do. But given the current coronavirus (COVID-19) news, it might be worth locating the plan, dusting it off, and reviewing it to ensure it is as comprehensive as you remember it to be. While there are many other good sources of information on the illness (such as CDC’s info for businesses: https://www.cdc.gov/coronavirus/2019-ncov/specific-groups/guidance-business-response.html), there are considerations that are financial institution specific. You might want to consider the following when reviewing your pandemic plan: 

                  • Be sure to look beyond your institution’s walls - specifically vendors. If a pandemic occurs, will your normal cash deliveries occur, and do you have an alternate source? FedEx/UPS or other deliveries may also be disrupted. 
                  • Expect more ATM traffic. That might be a reasonable option in a pandemic situation, especially if your ATMs accept deposits. Direct customers there and online when possible (consider developing communications statements in advance).
                  • If your cleaning service were unable to continue services, have a plan for how office trash collection and cleaning can be done by your own staff. Do you have cleaning supplies if you must do so?

                  • Can you close lobbies and operate through drive-ups only? Proactively evaluate which branches you might temporarily close if overall staffing is too low, and how to redistribute staff to locations kept open.  

                  • Consider working shifts in areas where you may want to distance employees from each other (e.g., have some work 6-noon and others noon-6 to separate staff). If schools were to close, it may place additional stress on staffing.
                  • In the event of a pandemic, you might need to know who on staff is pregnant, has existing medical issues, or anything else that might put them at increased risk by working. But you still must keep medical issues private (HIPAA…).
                  • Consider HR/payroll issues. Expect there will be personnel that have used up all their PTO, and if they show minor symptoms may come to work when they would otherwise stay home. Also, if some staff are deemed non-critical and asked to not come to work, expect the question “Will I be paid to stay home?”
                  • Do you have guards at any locations? You may need to re-evaluate the need for them (more or less needed) in an extreme situation. The need may change if you were to decide to close any lobbies.
                  • If you have a significant up-tick in VPN access, do you have sufficient Internet bandwidth, and VPN licenses, to support the increased traffic?
                  • If employees are allowed to work from home, consider whether that might result in customer data on personal computers. Would that be permitted or allowable?

                    ACH Origination file delivery back up method- Fiserv service bureau bank using Apiture online banking

                    COO at a bank ($205MUSA)
                    We are a Fiserv premier core outsourced bank and use Apiture online banking. We are looking for a back up method for ACH origination files when the direct connect between Apiture and Fiserv fails. Or, as happened today, an originator needed a file pushed after cut off. Apiture was able to deliver the file to us, but we had trouble getting to to Fiserv. Any recommendations for a secondary method to submit files?