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
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.