The European financial market infrastructure is formed by a network of different operators where reliability and continuity is based on sound, robust and trouble-free functioning of the different components of this network. If, for some reason, one piece of the network is not working properly, this will also cause problems for other participants. In a worst-case scenario, this can extend throughout the whole infrastructure and paralyse the entire financial system. This is why the smooth functioning of payment and security settlement systems is of utmost importance.
One way of ensuring the smooth functioning of the whole system is that every participant has a relevant business continuity system in place. As an overseer of local payment and settlement systems, the Bank of Finland is promoting this activity. One way of promoting the proper use of business continuity planning is this web page, which aims to share information on business continuity, with relevant links in both a domestic, European and global context.
The Bank of Finland and the local supervisor, FIN-FSA, work closely together in promoting the proper use of business continuity planning. The FIN-FSA is responsible for supervising individual institutions, and in that context inspects the business continuity plans of various relevant institutions.
Definition of Business Continuity
The ECB definition of Business Continuity:
Business continuity is the uninterrupted operation of a business. The term refers to all of the organisational, technical and staffing measures that are employed to
- ensure the continuation of all core business activities in the immediate aftermath of a crisis, and
- guarantee the gradual restoration of business activities as a whole in the event of sustained and severe disruptions.
The ESCB's glossary on business continuity (PDF)