Business continuity plans
The events of September 11 caused a lot of destruction, led to widespread dislocation to most financial institutions in their operations and personnel. The effects of September 11 events revealed the interdependence that exist in the financial system. It showed that decisions made by major institutions in regard to their level of preparedness for crises have great significant to the others both directly and indirectly.
This calls for a need coordinated business continuity planning as a result of the lessons learned from the events. The destruction caused to the physical infrastructure, which supported the financial institutions and telecommunication breakdown led to dislocation in the financial markets, disruption in clearing and settlement mechanism for government securities, repurchase agreements and commercial paper. (Morgan & Heckman, 2009).
One lesson learned is the importance for businesses to have contingency plans that focus on many buildings and various systems. The plans should consider the disruption that may affect the entire buildings, city or region in which they operate. Most of the business contingency plans had not put in place how their staff could be relocated to other sites in cases of such crisis, which occurred on September 11. The other lesson learned is the necessity for financial
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This is because most of the financial institutions had concentrated their operations within the geographical area in New York City. The financial institutions operations were tremendously devastated by the events, which destroyed the world trade centre. The concentration did not help as the events caused telecommunication failures, which affected many institutions, which were located in the same region (Morgan & Heckman, 2009).
The September 11 events also demonstrated the kind of interdependence that existed among the financial institutions wherever they were located. The event caused affected most of the operations of most financial institutions even those that were located outside New York. Most of connectivity to banks, broker-dealers and other organization were disrupted. Customers operations were affected by the effects of businesses, which they did not have, direct transactions. Delivery of funds and securities were hampered as a result of operational problems at other institutions. (Morgan & Heckman, 2009).
Morgan, M. & Heckman, J. (2009) The Impact of 9/11 on Business and Economics: The Business of Terror, New York, Palgrave Macmillan.