Independent assessment of your business continuity plan is the key to satisfying the FSA, says David Hiddleston
The majority of brokers are unlikely to meet the FSA's requirements in the areas of IT security and business continuity. At the very least, they will fail the requirement to hold adequate documentation. More worrying is that individual senior managers will face condemnation for not meeting the regulator's basic principles of integrity, due care, skill and diligence and for failing to take reasonable care to organise and control the affairs of their business effectively and with adequate risk management.With IT - particularly access to the internet and email communication - becoming fundamental to the operation of most broking businesses, senior managers will no longer be able to offload their responsibilities. Lack of understanding will not be a defence.Cyber Protect's research has uncovered worrying situations that are common to both the personal lines and commercial sectors. Notably:
Why is it important to have sound IT security in place?