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Many British financial firms do not have a plan B to fall back on if they are hit by a cyberattack. The Bank of England wants to change that.
Financial regulators have asked companies to come up with a detailed plan to restore services, such as payments, loans and insurance, and invest in people and technology to make it work. "Boards and senior management should badume that individual systems and processes that support business services will be disrupted and that they will put more emphasis on contingency plans, interventions and recovery.
The discussion paper released Thursday is part of regulators' efforts to strengthen the resilience of financial firms in response to a growing number of operational failures. The focus is on the continuity of business services essential to the economy.
Regulators emphasized the role that senior corporate officials must play in improving their ability to bounce back in times of crisis. Thursday's article aims to spark a debate with industry and consumers on how best to respond to the inevitable disruptions.
Lyndon Nelson, Deputy Director General of the BOE's Prudential Regulation Authority, recently stated that companies should "
In addition to cyberattacks, the BOE and the FCA have stated that companies should be prepared for disruptions caused by the failure of outsourcing and technological breakdowns
. times in "serious but plausible" scenarios, and companies that fail will have to find solutions and have them approved by the supervisor. To guide lenders in their planning, the BOE will set a deadline after which a disruption of payments, insurance and other services would have a significant economic impact.
Source: Bloomberg
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