September 11, 2014
Business Continuity Redux: How the Perfect Storm Provided Regulators with the Perfect Opportunity
The breadth and destructive force of Hurricane Sandy, which in October 2012 spread across 15 states as the largest Atlantic hurricane on record, tested the financial industry’s best-laid plans for business continuity management (BCM). Regulatory authorities, such as the Securities and Exchange Commission (SEC), the Financial System Regulatory Authority (FINRA), and the Commodity Futures Trading Commission, used this event to re-examine, re-emphasize, and re-educate the financial base concerning common weaknesses and lessons learned. And beyond the regulatory compliance concerns, many investment advisors learned how a disaster could severely challenge their service to clients and the stability of their businesses.