Essay about Crisis Management
In 2005, Bank for International Settlements (BIS) came up with 7 high-level principles on business continuity and was issued to various financial industry participants as guidelines. The 7 principles provide a comprehensive overview of the necessary steps for business continuity planning. Financial industry participants are required to develop respective business continuity planning in accordance to the 7 high-level principles.
There are various incidents within the last decade that has resulted in major operational disruption to financial industry. However, with the guidance of the 7 high-level principles, most of the participants were able to cope with crisis well and survive through the crisis. In this report, …show more content…
These case studies will be used to show the relevance and importance of each of the 7 high-level principles.
Business continuity planning refers to having a plan to ensure the business continues to survive in the event of an operational disruption of any sort. Bank for International Settlements (BIS) came up with 7 high-level principles on business continuity as a response to a request from Financial Stability Forum in September. The principles provide a comprehensive coverage of business continuity planning to financial authorities and financial industry participants.
Principle 1 focuses on the importance of having a sound business continuity plan for both financial industry participants and financial authorities. This principle also stresses that the ultimate responsibility for business continuity planning lies with the board of directors and senior management.
Principle 2 advises organizations to expressly consider and plan for major operational disruptions caused by catastrophic incidents. This is in response to the increasing number of natural disasters and act of terrorism that has