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Informational Memorandum
Subject:Reassessment of Business Continuity Plan
Date of Memorandum:10/18/2001
Expiration Date:
Office:OE
Signed By:Smith, Roland
FCA Contact Person:Holland, Tom
Contact Phone:703-883-4484
List of Attachments:

INFORMATIONAL MEMORANDUM



October 18, 2001


To: The Chief Executive Officer
All Farm Credit System Institutions

From: Roland E. Smith, Director
Office of Examination

Subject: Reassessment of Business Continuity Plan


Despite the tragic events of September 11, 2001, the financial markets operated with limited disruption. Certainly a key factor was that mission-critical information systems continued to provide the financial industry the necessary support during this uncertain time. Nevertheless, these events should cause financial institutions and financial regulators to review current practices and priorities as it relates to planning for business recovery. To that end, you should give special attention in the coming months to the Business Continuity Plan of your institution to ensure it addresses the ramifications of natural disasters, acts of war or terrorism, and cyber-terrorism. The Farm Credit Administration has previously issued guidance on various elements of business continuity planning that could assist board and management. This guidance includes the following Informational Memoranda which can be found on our Web site – www.fca.gov.

“Contingency Planning for Business Continuity” issued June 30, 1998
“Guidance on Year 2000 Contingency Planning” issued January 29, 1999
“Threats to Information Management Systems” issued August 30, 1999
“Risk Management of Outsourcing” issued October 25, 2000

The primary objective of a Business Continuity Plan is to enable an organization to survive a disaster and to reestablish normal business operations. In order to survive, the organization must ensure that mission-critical operations can resume normal processing within a reasonable timeframe. For financial institutions, including Farm Credit System (FCS) institutions, the general public likely expects “reasonable time” to be quite a short period of time. The board and management’s reassessment of the institution’s Business Continuity Plan should include the following actions:


If you have any questions about this memorandum, please call Tom Glenn, Special Examination and Supervision Division, Office of Examination, at (703) 883-4412, or write to him on the Internet at e-mail address Glennt@fca.gov.