TEXT-Fitch: CLO manager continuity plans pass sandy test
Nov 13 - A review of New York City-based managers of Fitch-rated CLOs indicates limited disruption to normal operational activities as a result of Hurricane Sandy. Business continuity plans (BCPs) were initiated in cases where offices were closed during the days following the storm. Fitch found that BCP actions were largely limited to initiation of employee remote access procedures versus more extensive offsite disaster recovery procedures. Each of the reviewed NYC managers has since returned to normal operating procedures. Because most managers rely on technology, it is imperative they maintain comprehensive disaster recovery and business resumption plans, including data back-up routines and maintenance of uninterrupted power sources. Most managers have plans in place to reduce or eliminate the amount of time that critical systems are offline in the event of a power outage, natural disaster, or other emergency. Fitch reviews managers' disaster recovery and business resumption plans for adequacy and completeness. Frequency and success of disaster recovery simulations and data restoration tests are also important considerations. More information on the effects of Hurricane Sandy on the capital markets can be found at www.fitchratings.com. The above article originally appeared as a post on the Fitch Wire credit market commentary page. The original article can be accessed at www.fitchratings.com. All opinions expressed are those of Fitch Ratings.