institutions are expected to have sound Business Continuity
Management (BCM) to cope with emergencies and unplanned
their operations. MAS continued to emphasise the importance
of sound BCM in its overall supervisory assessment. MAS
also conducted a thematic BCM review to assess the financial
institutions state of readiness against disruptions.
In June 2003, MAS issued BCM guidelines after consulting
the public. The guidelines encompass seven principles
which financial institutions are
encouraged to adopt to strengthen their BCM. They may
adapt the guidelines as necessary, taking into account
their specific business activities and operating environments.
The principles provide guidance on recovery time objectives
for critical business functions, separation policy to
address concentration risk, and catering for a wide-area
outage scenario among others.
Financial institutions recognise the need to work together
on BCM matters. The banking industry, through the Association
of Banks in Singapore (ABS), formed a BCM Task Force to
enhance the industrys resilience and responsiveness
to crisis. The ABS BCM Task Force has set up an industry-wide
crisis co-ordination framework. It also held meetings
with service providers to better appreciate the interconnectedness
of participants in the financial sector and their BCM
preparedness. We support and participate in the Task Force.
Enhancing Risk-focused Supervisory Approach
Box 1 Fostering a Sound and Progressive
Financial Services Sector