Financial firms need plans for what to do if normal business operations are disrupted. Common disruptions include power outages, severe weather, and interruptions to communication systems. To prepare for these situations, firms maintain comprehensive business continuity plans (BCPs).
BCPs can vary in detail, but they typically include the following:
Data recovery plans
Meeting locations for employees
Alternative communication plans for employees
Alternative communication plans for customers
Firms must provide customers with an outline of their BCPs when customers open accounts, and they must also make this outline available on the firm’s website. In addition, firms must provide the BCP outline to customers if the customer requests it in writing.