Source: Securities Commission Malysia
The Securities Commission Malaysia (SC) today issued Guiding Principles on Business Continuity for capital market entities, as part of its ongoing efforts to enhance the systemic resiliency of the capital market.
The principles set out the SC’s expectations of the business continuity management approach of capital market entities to ensure timely continuity of critical services and the fulfilment of business obligations in the event of disruptions. A comprehensive business continuity management approach will also help to mitigate any possibility of wider systemic risk implications to the capital market, taking into consideration the rapidly changing landscape of the market.
The principles, developed in close consultation with the industry, highlighted six focus areas including board and senior management’s responsibility in ensuring sound and effective business continuity protocol; the importance of risk identification, in particular interdependency and concentration risks; risk-based recovery strategy; annual testing of business continuity protocols; comprehensive escalation procedures and communication plans in the event of major disruptions; as well as ongoing review of business continuity arrangements.
Capital market entities are encouraged to adopt and implement these principles, which serve as best practices, taking into account the nature, size and complexity of their business operations.
Contributed | what does this mean?