The largest financial services and futures industries firms are well-prepared to respond to a major threat or potential disaster, while smaller firms lag behind, according to the results of a study conducted by Wall Street consultancy the Tellefsen Consulting Group (TCG).
The TCG survey, which was conducted concurrent to the August 2003 Northeast blackout, provides an indication of the preparedness of a cross-section of financial services firms, across twelve major areas of disaster recovery/business continuity planning and related activities.
Half of large firms - defined in the survey as those with over 250 employees - say they are "very well prepared" to respond to a major disaster or threat situation, while most small firms rate themselves as only being "adequately" prepared.
Differences in planning among large and small firms were noted. Large firms distribute business continuity and disaster recovery plans more widely to their staff than smaller firms; 80% of large firms indicate distribution to all employees, compared with 40% of small firms. Unlike large firms, small firms have not supplemented Property and Casualty Insurance with supplemental Catastrophic Risk coverage - possibly for cost purposes - and have indicated no future plan to obtain any.
A key finding of the survey revealed that 85% of the largest financial services and futures industry firms have adopted both business continuity and disaster recovery plans. Most firms have a dedicated person or group accountable for BC/DR planning and budgeting and firms conduct planning on a centralised basis.
John Rapa, president and CEO of TCG comments: "Most have gotten the message and have relatively mature DR and emerging BC plans; the survey indicates that most firms developed and implemented their BC/DR plans within the last two years."