Business Recovery Plan In Foreign Exchange

In this article, we are going to discuss about the business recovery plan in foreign exchange. Let us start with reviewing the checklist put together by the regulatory authority regarding business recovery plan in forex.

It has been stated in the checklist that each of the member firm must adopt a written business continuity and disaster recovery plan which has been tailored to its operations. The following details in this regard have been drafted by the agency in order to provide the necessary information to the firms and making it easy for them to meet the standard being laid down.

According to the business recovery plan in foreign exchange guidelines, each of the member firm need to maintain its business continuity and disaster recovery plan with other firm procedures. It is not enough to have a written policy to meet all the conditions laid down by the regulatory authority. In addition to this, the firm must also implement and follow a proper policy and also communicate it to its employees.

Guidelines for business recovery plan in foreign exchange consist of the following main points:

• The firm must establish a well written business continuity and disaster recovery plan and also test the test the plan on regular basis.
• The revisions must be made into the business recovery plan in foreign exchange if and when required.
• The business recovery plan in forex must be communicated among the key employees in order to maintain its copies off-site.
• There must be a proper system proving duplicate essential computer and telecommunication systems at a backup facility.
• Firm should provide primary and backup facilities at various geographically distributed areas. For example, the primary and backup facilities should be located in different power grids, and different telecommunication vendors should be utilized.
• A proper mechanism should be on place to take regular back up of essential electronic data like the general ledger.
• The complete, up-to-date inventory of all information technology systems, including both hardware and software must be maintained by the firm.
• There must be a proper plan outlining the impact of business interruptions encountered by third parties determined to be essential to the continuation of the firms business.
• Proper Maintenance of details such as current employee’s telephone lists and contact information.
• Duplicate critical staff competencies.
• The firms should develop a proper communication plan to contact essential parties such as employees, board members, customers, carrying brokers, vendors, disaster recovery specialists and regulatory authority.