ComputerWorld’s Sept 10 article on CDP is a good starting point for this emerging trend. It’s an example a technology that appeals to all, but is best to implement with relatively mature IT practices in place.
As the Hello World! post for this blog, we want to start by sharing lessons learned by investment advisers effected by Katrina. The Securities & Exchange Commission provided summary findings in their June 2007 Compliance Alert. Here’s the relevant excerpt:
Particular provisions of the advisers’ Disaster Recovery Plans that appeared to be effective with respect to the adviser’s ability to provide uninterrupted advisory services to clients in a compliant manner after a disaster included:
- a pre-arranged remote location for short-term and possible long-term use
- alternate communication protocols to contact staff and clients, such as cell phones, text messaging, web-based email accounts, or an Internet website
- remote access to business records and client data through appropriately secured means that ensure ongoing compliance with Regulation S-P and other confidentiality requirements
- temporary lodging for key staff where necessary as a result of a relocation of the firm
- maintaining accurate and up-to-date contact information for all third-party service providers, including custodians, broker-dealers, transfer agents, pricing services, and research firms
- familiarity with the business continuity plans of such third-party service providers
- contingency arrangements for loss of key personnel, such as the president or primary portfolio manager, either temporarily or permanently
- effective training of staff on how to fulfill essential duties in the event of a disaster, including compliance matters
- periodic testing, evaluation, and revision of disaster preparedness plan
- maintaining sufficient insurance and financial liquidity to prevent any interruption to the performance of compliant advisory services
