Evaluating and contrasting the approach taken by Maltese banks towards implementing a business continuity plan

Abstract

Business continuity planning (BCP) is a component of business continuity management and provides a plan that sets out procedures and processes which are necessary to continue or restore the operations of an organization in the case of a disaster or disruption. This research was aimed to investigate the extent to which Maltese banks approach the formulation of a business continuity plan. This dissertation studied how the preparation for business continuity is carried out in six banks located in Malta and analysed the different standards that each bank followed in order to establish a suitable and an approved business continuity plan. This study also evaluated the process and procedures that are carried out when planning for business continuity. Additionally, this research sought to observe the involvement of different employees in the development of the business continuity plan. Lastly, the dissertation briefly examined the extent to which the plan for continuity by the Maltese banks was considered to be an approved business continuity plan by the Malta Financial Services Authority (MFSA). Data and relevant material was gathered from existing multi-sourced and peer-reviewed secondary data sources. The methodology used was a qualitative one and semi-structured interviews were adopted. The data was compared and contrasted both between the different Maltese banks and also between the Maltese scenario and foreign banks. Findings showed a distinction of procedures between the banks with regards to the process of attaining a business continuity plan, especially when contrasting the use of standards. Results showed similarities between the banks' objectives, particularly with regards to continuation of operations with a fast recovery and minimum impact. Moreover, every interviewed bank seemed to involve the employees in some way or another within the development of the plan. Lastly, it was established that the MFSA only states that a financial institution is to have a business continuity plan, however it provides no guidance or further clarifications. Consequently, banks established in Malta emerged to be less aggressive towards business continuity planning whilst international banks located in Malta portrayed higher resemblance to other foreign banks with respect to a more active business continuity plan approach.