In today’s ever-changing financial services landscape, maintaining uninterrupted operations is paramount, especially for businesses regulated by the FCA and PRA. The ability to swiftly recover and resume work in the event of disruptions is not just best practice, it’s a regulatory necessity.
While remote work has become more prevalent over the past few years, it’s crucial to acknowledge that working from home isn’t always the best option for PRA regulated businesses when it comes to ensuring compliance and maintaining operational resilience.
In light of recent developments where banks are actively promoting a return to the office, attention is once again shifting towards alternative workplace solutions. The rationale behind this reconsideration is that remote work (WFH) might not meet the stringent requirements of compliance audits, especially in the context of the enforcement actions and fines imposed by various industry regulators, such as the recent Ofgem fine against a global leader in financial services in relation to energy trading. It is clear that the benefits of a work area recovery solution far outweigh the risk of potential enforcement fines.
Here are some key reasons why work area recovery (WAR) is an indispensable element of your business continuity strategy:
Regulatory Compliance
All regulated businesses are subject to stringent governance, regulatory and compliance (GRC) requirements aimed at safeguarding the stability and security of the financial sector. These regulations often mandate the implementation of robust business continuity plans, including work area recovery solutions. Failing to meet these requirements can result in regulatory penalties and reputational damage.
Unpredictable Business Continuity Events
Most events occur without notice or warning, such as cyber-attacks or utility interruptions. COVID-19 was a known threat, allowing organisations time to prepare for WFH. Traditional business continuity events demand different strategies.
Speed and Coordination
Work Area Recovery is crucial for critical, high-priority, and high-risk activities identified through Business Impact Analysis. Teams must be up and running quickly, often within hours. Some teams and processes require coordinated efforts and on-site presence to maintain efficiency and data confidentiality.
Data Security and Privacy
Remote work can introduce security risks, particularly when handling sensitive financial data. Maintaining a controlled, secure work environment is essential to protect sensitive information from cyber threats and data breaches.
Isolation Risks
Currently, and throughout COVID-19, everyone has been dealing with similar challenges and is accepting of disruptions. However, if your organisation were the only one affected, maintaining 100% capacity through WFH might be unsustainable, risking confidentiality, compliance, and competitive advantages.
Connectivity and Infrastructure
Ensuring uninterrupted access to critical systems and infrastructure is vital for financial institutions. Work area recovery facilities are equipped with redundant power sources, high-speed internet, and dedicated IT support, ensuring that your employees can work without disruption.
Resilience Testing
Regular testing of your work area recovery plan helps identify weaknesses and vulnerabilities. This process is essential to ensure that your business can respond effectively to unexpected events, minimising downtime and financial losses.
Conclusion
While remote work has its advantages, it may not provide the level of security, compliance, and operational resilience required by PRA regulated businesses. Investing in work area recovery solutions ensures that your organisation can continue to function smoothly even in the face of unexpected challenges, ultimately safeguarding your reputation and bottom line.
If you would like to discuss how our work area recovery services can benefit your organisation or have any questions regarding compliance and resilience, please don’t hesitate to reach out.