Creating a Business Continuity Plan
The Purpose of Business Continuity Plans Business continuity plans are created to ensure that businesses are not caught flatfooted during any form of business disruption, from utility outages and natural disasters to government actions and acts of terrorism. A BCP is a compilation of processes and procedures that are to be put in place upon […]
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Creating a Business Continuity Plan
The Purpose of Business Continuity Plans
Business continuity plans are created to ensure that businesses are not caught flatfooted during any form of business disruption, from utility outages and natural disasters to government actions and acts of terrorism. A BCP is a compilation of processes and procedures that are to be put in place upon some triggering event in order to ensure that advisors can continue to service their clients and perform the day-to-day operations of their practice.
The Elements of a Business Continuity Plan
The North American Securities Administrators Association (NASAA) offers advisors a useful model for developing a BCP for their practices, though individual state rules may differ from the NASAA model.2 The NASAA model incorporates five key provisions, namely:
- Provide for the protection, back-up, and recovery of an advisor’s books and records.
- Identify an alternative means for communicating with customers, employees, and regulators.
- Provide for office relocation.
- Name responsible individual(s) to act in the event of the death or disability of key personnel.
- Identify ways to minimize service interruptions and client harm.
In this white paper, “Creating a Business Continuity Plan,” we discuss the purpose and scope of a BCP, review the lessons learned from the business disruption of Superstorm Sandy and outline what a model BCP looks like.
