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Business Continuity Management (BCM)
Understanding Business Continuity Management (BCM) in Europe and Key Jurisdictions
Business Continuity Management (BCM) is the process of preparing financial institutions to handle disruptions effectively, ensuring continuity of critical operations and minimizing potential impacts on clients, stakeholders, and the financial system. In Germany, Austria, Switzerland, Luxembourg, and Liechtenstein, BCM is recognized as a cornerstone of operational resilience, addressing risks such as cyberattacks, natural disasters, and system failures. A robust BCM framework ensures institutions can maintain regulatory compliance and client trust during crises.
Legal and Regulatory Requirements for Business Continuity Management
Financial institutions are subject to stringent BCM requirements set by European and national regulators to safeguard the stability of the financial sector.
European Union
- ECB: The European Central Bank emphasizes BCM as a critical component of operational risk management under the Single Supervisory Mechanism (SSM). Institutions must ensure preparedness for severe business disruptions.
- EBA: The European Banking Authority includes BCM as a requirement in its Guidelines on Outsourcing Arrangements and Operational Resilience Framework, ensuring institutions can recover critical functions swiftly.
- EIOPA: The European Insurance and Occupational Pensions Authority mandates BCM under the Solvency II Directive, focusing on governance, risk management, and operational continuity.
- ESMA: The European Securities and Markets Authority enforces BCM standards under MiFID II, emphasizing the need for operational continuity to protect investors and maintain market stability.
Germany
- BaFin and Deutsche Bundesbank: The MaRisk framework requires institutions to establish BCM systems, including Business Impact Analysis (BIA), disaster recovery planning, and regular testing.
Austria
- FMA: Austria’s Financial Market Authority enforces BCM under the BWG and VAG, emphasizing risk assessment, recovery strategies, and communication plans.
Switzerland
- FINMA: The Swiss Financial Market Supervisory Authority mandates BCM through its Circular 2017/1, requiring institutions to identify critical operations and ensure their continuity during disruptions.
Luxembourg
- CSSF: The Commission de Surveillance du Secteur Financier outlines BCM requirements in CSSF Circular 12/552, focusing on contingency planning, testing, and governance.
Liechtenstein
- FMA: The Financial Market Authority aligns BCM requirements with European directives, ensuring institutions can maintain critical operations under adverse conditions.
Leitner & Associates‘ Business Continuity Management Solutions
We provide comprehensive BCM solutions to ensure your institution is prepared for any disruption:
- Audit: In-depth assessments of existing BCM frameworks to identify gaps and ensure compliance.
- Consulting: Expert guidance to develop, implement, and optimize BCM systems.
- Training: Customized programs to equip teams with BCM knowledge and skills.
- Interim Management: Experienced professionals to manage BCM functions during transitions.
- Outsourcing: End-to-end BCM services to streamline operations and maintain resilience.
Products for Business Continuity Management Implementation
From building a framework from scratch to enhancing existing systems, our products cover every aspect of BCM:
- Commentaries: Expert analysis of BCM regulations and practical insights for implementation.
- Guidelines: Frameworks for establishing and managing effective BCM systems.
- Policies: Clear documentation of BCM governance, roles, and responsibilities.
- Procedures: Detailed instructions for handling business disruptions.
- Control Plans and Checklists: Tools to monitor and enhance BCM preparedness.
- Reports and Training Certificates: Comprehensive documentation of BCM efforts and validation of expertise.
Why Choose Leitner & Associates for Business Continuity Management?
At Leitner & Associates, we specialize in creating robust BCM frameworks that ensure resilience and compliance. Whether building from a „green field“ or optimizing existing systems, our solutions are tailored to meet the specific needs of your institution.