The Depository Trust & Clearing Corporation (DTCC)’s new white paper is urging the global financial services industry to establish business resilience in order to weather future market disruptions, according to Embargo.
The firm believes that a paradigm shift is needed to protect the industry from significant threats presented by cyberattacks, rapid development and adoption of new technologies, increased interconnectedness of the financial ecosystem, and growing industry-wide concentration risks.
“Resilience First,” DTCC’s new whitepaper, highlighted the need for a holistic forward-looking approach driven by business ownership and industry-wide collaboration.
It emphasised the importance of broadening business resilience efforts to include all relevant stakeholders, ensure full business ownership, consider an end-to-end perspective across critical business services, and incorporate resilience into the initial design of new products and services.
“With the threat of potential disruptions continuing to grow, firms can no longer afford to focus on disaster recovery, business continuity management, and cybersecurity in isolation,” said Dan Thieke, managing director for business risk & resilience management at DTCC.
“Resilience initiatives should look holistically at threats and aim to safeguard critical business services against a wide range of technical, physical, logical or financial disruptions.”
The report also detailed core principles and supporting guidelines to further resilience efforts. They were developed by the firm but they can be adopted by entities that want to make their critical business services even more robust.
Thieke explained that ongoing industry collaboration is needed to ensure readiness to mitigate the impact of technical, physical, or logical disruptions to critical business services.
“We are committed to leveraging our experience to lead the discussion on the evolution of industry-wide resilience. This is a key strategic enabler that is consistent with our mission to deliver the world’s most resilient and secure post-trade infrastructure for our clients,” Thieke concluded.