scenario delivery

1© 2006 KPMG LLP, the UK member firm of KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted.

KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.

Scenario delivery



Exercise scenario cell

Exercise Director

Logistics Manager

Scenario CellManager

Facilitators’Liaison Manager

Logistics Team

Facilitators’Liaison TeamInjector Cell

Civil AuthoritiesMHASCDFSPFLTA

SGX Cell

Journalist CellMAS Cell



Post-exercise

Participant ‘on-the-day’ poll

Press conference

Detailed debrief questionnaire

Report



Key learning points – crisis response

Markets expect regulators to take a lead

Regular, effective communications are vital to support market stability and maintain market confidence

Critical information to be retrieved from the financial institutions, so the extent of damage is assessed

Co-ordination within the financial industry and with emergency services is essential

Business continuity is not only an information systems issue, but also a human resources issue



Why does sector-wide resilience matter?

• Financial system highly interconnected

• All financial markets participants are dependent upon the ability of counterparties to make payments and settle transactions

• Borrowers need lenders

• Buyers need sellers

• Financial infrastructure providers underpin the system

• Does not make sense to plan in isolation

[From a presentation by David Strachan, Sector Leader Financial Stability, Financial Services Authority, March 2007]



Why does cross-border resilience matter?

• Events in UK markets have global ramifications and vice versa

• Crucial that international regulatory community can respond in a coordinated and effective way to global disruption

• Actions taken internationally need to be mutually reinforcing




Conclusions

• “KPMG's paper rightly concentrates upon firm-specific issues as the essential building block for improving resilience

• But it also highlights the importance of thinking and engaging more widely across the UK financial sector and across borders”

• “At the FSA we believe that the work we have undertaken in cooperation with key firms on benchmarking and testing has contributed – and will continue to contribute – to enhancing sector-wide resilience

• Our key priority going forward will be to strengthen the ability of authorities to respond effectively to major cross-border events”


Presenter’s contact details

Rick Cudworth

Partner, KPMG LLP (UK)

Service Leader, Business Continuity

+44 (0)7715 704805

[email protected]

www.kpmg.co.uk

scenario delivery

Documents