Almost 10 months since Superstorm Sandy caused widespread destruction to the northeastern U.S., an area not known for frequent hurricane activity, the people and businesses affected have still not fully recovered. As we now reenter the peak of hurricane season, businesses along the eastern seaboard are probably taking a closer look now than in years past at their disaster preparedness in light of last year’s events. The impact of Hurricane Sandy was certainly not limited to the U.S. In reality, there were global implications as, for example, U.S. equity and options markets were closed for two full trading days following the storm. As a result, the SEC, FINRA and the CFTC undertook a joint review of their individual business continuity and disaster recovery planning. Last week, on August 16, these three regulatory agencies issued a joint release outlining some lessons learned and best practices noted in their investigations and review.
The release focused on a number of specific areas including:
- Widespread disruption considerations;
- Alternative locations considerations;
- Vendor relationships;
- Telecommunications services and technology considerations;
- Communication plans;
- Regulatory and compliance consideration; and
- Review and testing.
The primary motif in the release was that
Continue Reading Hurricanes, flash freezes and other disasters – plan and disclose accordingly or you may be hearing from the SEC