DISASTER PREPAREDNESS AND THE ROLE OF THE BSP AND...
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DISASTER PREPAREDNESS AND THE ROLE OF THE BSP AND THE FINANCIAL SERVICES SECTOR ATTY. VICENTE S. AQUINO Deputy Governor – Resource Management Sector and Security Plant Complex, Bangko Sentral ng Pilipinas Earthquake Resilience Conference: Collaboration and Coordination in Preparedness and Response Taipan Room, Tower Club, Philamlife Tower, Makati City, 21 May 2015
Transcript of DISASTER PREPAREDNESS AND THE ROLE OF THE BSP AND...
DISASTER PREPAREDNESS AND THE ROLE OF THE BSP AND THE
FINANCIAL SERVICES SECTOR
ATTY. VICENTE S. AQUINO Deputy Governor – Resource Management Sector and Security Plant Complex,
Bangko Sentral ng Pilipinas
Earthquake Resilience Conference: Collaboration and Coordination in Preparedness and Response Taipan Room, Tower Club, Philamlife Tower, Makati City, 21 May 2015
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Do You Know How Many Banks (Head Offices and Branches) are Operating in the National Capital
Region?
Total Number of Banks in the NCR:
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2,644 Universal and Commercial
Banks
544 Thrift Banks
87 Rural and
Cooperative Banks
3,275 (83 head offices and 3,192 branches)
35 head offices 2,609 branches
28 head offices 516 branches
20 head offices 67 branches
I. BSP Regulatory Framework for Business Continuity Management
• Circular Letter dated 26 September 2001 [Requiring Banks to Prepare and Submit Business Continuity Plans (BCPs) to BSP]
• Circular Letter dated 3 October 2001 [Requiring Non-Bank Financial Institutions (NBFIs) to Prepare and Submit BCPs to BSP]
• Memorandum to all Banks and NBFIs dated 3 April 2003 (Requiring the Submission of Updated BCPs to BSP)
• Memorandum to all Banks and NBFIs with Head Offices Located in Metro Manila, Metro Cebu and Metro Davao dated 20 October 2003 (Requiring the said entities to furnish BSP with information on their Back-Up Site Arrangements)
• Memorandum to all Banks and NBFIs dated 22 January 2004 (Revised Guidelines on the Establishment of Back-up Operation Centers and Data Recovery Sites)
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BSP Regulatory Framework for Business Continuity Management (cont’d.)
• Circular No. 808 dated 22 August 2013 (Enhanced Guidelines on Information Technology Risk Management for all Banks and other BSP-supervised institutions)
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BSP Regulatory Framework for Business Continuity Management (cont’d.)
Objectives
o Minimize disruption of basic banking services
o Minimize financial losses
o Resume critical operations within the shortest possible time from the occurrence of the disaster
o Continue upholding consumer protection
o Avoid systemic impact within the financial services industry
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BSP Regulatory Framework for Business Continuity Management (cont’d.)
Salient Features
o Comprehensive and updated Business Continuity Plan (BCP)
o BCM oversight structure
o Periodic testing, validation and review
o Communication plan and outreach strategy
o Back-up operations center/data recovery site
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BSP Regulatory Framework for Business Continuity Management (cont’d.)
Primary Elements of BCP
o Identification of mission-critical processes
o Identification of different crisis scenarios
o Sustained functioning of mission-critical processes and/or timely resumption of non-critical operations
o Creation of Business Continuity Management Teams (BCMTs)
o Formulation of a disaster preparedness and emergency response action plan
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II. Ongoing Initiatives of the Banking Industry
o BCM oversight structures are in place.
o Business continuity and disaster recovery plans are documented and updated.
o Alternate business continuity sites are established.
o Redundant/multiple communication lines exist.
o Simulation exercises are regularly conducted.
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Ongoing Initiatives of the Banking Industry (cont’d.)
o Liquidity contingency plans are available.
o Branches are equipped with uninterruptible power supply (UPS) units, generator sets and adequate fuel supply.
o Branches can operate on an “offline mode” or revert to manual procedures.
o Banking services are delivered in a limited mode (i.e., cash withdrawals and deposits) .
o Buddy branch system is adopted.
WORST-CASE SCENARIO
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III. BSP Resiliency Framework
Incident Management
Business Continuity
The overall coordination of BSP’s response to an incident that may endanger life, property, and/or reputation.
The integrated approach towards the continuation of BSP’s critical business activities during business disruptions.
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IV. BSP’s Mission-Critical Functions
The mission-critical functions that are part of the BSP BCMS are:
1. Payments and settlements (Real-Time Gross Settlement)
2. Lending and credit
3. Treasury operations
4. Currency management
5. Accounting operations
6. Information and communications technology
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V. Ongoing Initiatives of the BSP
o BSP mission-critical operations particularly cash management, treasury, rediscounting and settlement can operate using manual procedures.
o BSP Head Office and alternate site are equipped with uninterruptible power supply (UPS) units, generator sets and adequate fuel supply.
o BSP Head Office and Security Plant Complex structures can withstand strong earthquakes and are well-secured.
o BSP Head Office and Security Plant Complex are both connected to two (2) power grids and have two telcos providing connectivity/link with each other and with the banks.
WORST-CASE SCENARIO
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VI. Overall Preparedness and the Way Forward
o BSP’s robust regulatory framework and the banking sector’s preparedness initiatives will ensure the availability of critical banking services to the public.
o Regular coordination will be constantly done with the banking sector to ensure readiness even in a worst-case scenario.
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Overall Preparedness and the Way Forward
In short…
the Banking Sector is Prepared!!!
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