Banks Wake Up to Need for Disaster Recovery

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Byline: Heather McKenzie

A decade ago disaster recovery plans were the exception rather than the rule among financial institutions. During the Irish Republican Army's (IRA) bombing campaign on mainland Britain in the early 1990s institutions in the City of London relied on the cosy idea of the City as a community. If the bombers disrupted operations at their dealing rooms they could camp out at another bank's offices until alternative accommodation could be found.Ten years on, it would be rare to find an institution anywhere in the world that does not have a disaster recovery plan. Regulatory pressure as well as the events of September 11, 2001 have driven the adoption of business continuity strategies.

The UK's Financial Services Authority said in a consultation paper on operational risk management, published in July 2003: "A firm should have in place appropriate arrangements, having regard to the nature, scale and …