Byline: Heather McKenzie
Spending by financial institutions on business continuity planning and disaster recovery products and services is expected to grow by 65% over the next two years, from $2.2bn ([euro]2.05bn) in 2003 to $5.3bn.Datamonitor, the UK research firm, said that the threat of terrorism has triggered awareness at a board level of the need to invest in such services, to take account of the operational risk of failure due to a terrorist attack. Financial institutions were ahead of other sectors, such as healthcare, government and corporates in their spending plans.
Datamonitor said while terrorism sparked off the spending in business continuity planning and disaster recovery, other drivers have added to momentum, such as globalisation, the move towards 24-hour, seven-days-a-week business activities, and the need to comply with regulatory requirements such as the Basle II Accord on capital adequacy and risk.
The research firm said internal reviews by financial institutions of their business processes, building safety and IT systems had been 'startling' for many. …