[BOT] BCM Policy Issued by Bank of Thailand

[BOT] BCM Policy Issued by the Bank of Thailand (BOT)

The Bank of Thailand (BOT), the country's central bank, promotes financial stability. Unlike other central banks in Southeast Asia, the BOT has a publicly available policy document dedicated to BCM.

This policy, titled "Policy Statement Re: Business Continuity Management (BCM) and Business Continuity Plan (BCP) of Financial Institutions," provides a clear framework for BCM expectations for Thai FIs.

Policy Statement on BCM and BCP

https://www.bot.or.th/content/dam/bot/fipcs/documents/FPG/2551/EngPDF/25510386.pdf, is Issued in 2008. the BOT's policy statement outlines key expectations for FIs in Thailand regarding BCM.

These include:

Importance of BCM: The policy emphasizes the importance of BCM for maintaining operational resilience and mitigating disruption within the Thai financial system.
Board of Directors Responsibility: The Board of Directors of each FI is ultimately responsible for establishing and overseeing the BCM framework within the organization.
BCM Framework: The policy outlines the need for FIs to develop and implement a comprehensive BCM framework. This framework should encompass:
Policy and Standards: Establishing clear guidelines and standards for BCM practices within the FI.
Risk Assessment: Conduct a thorough risk assessment to identify potential threats and vulnerabilities impacting critical business functions (CBFs).
Business Continuity Plans (BCPs): Developing and maintaining documented BCPs that outline recovery strategies for CBFs following disruptions. These BCPs should be tailored to the specific risks identified in the assessment.
Testing and Exercising: Regularly test and exercise BCPs to ensure their effectiveness and identify areas for improvement.
Incident Response: Establishing clear procedures for responding to incidents that could disrupt operations. These procedures should include communication protocols, escalation processes, and recovery measures.
Reporting Requirements: The policy requires FIs to submit their written BCM and BCP documentation to the BOT for review within a specified timeframe.
Notification Requirements: The policy mandates FIs to notify the BOT promptly if a significant disruption impacts their operations.

Focus Areas for Financial Institutions Operating in Thailand

The BOT's policy statement provides a clear roadmap for BCM practices in Thailand. Key focus areas for Thai FIs include:

Alignment with BOT Policy: Ensuring their BCM programs comply with all the requirements outlined in the BOT's Policy Statement on BCM and BCP.
Risk-Based Approach: Conduct risk assessments considering threats specific to the Thai financial sector, such as natural disasters (floods), cyberattacks, technological disruptions, and infrastructure outages.
Focus on Critical Business Functions: Prioritizing BCP development and testing for CBFs is crucial for maintaining financial stability in Thailand.
Regular Testing and Improvement: Regularly testing BCPs through simulations and exercises to identify weaknesses and ensure operational readiness during disruptions.
Incident Response and Communication: Developing clear procedures for responding to incidents and communicating effectively with stakeholders during disruptions.

Summing Up ...

The Bank of Thailand's publicly available policy statement provides a comprehensive and industry-specific framework for BCM in Thailand.

Understanding these expectations is essential for Thai FIs to develop and maintain robust BCM programs. Effective BCM practices contribute to the overall resilience of the Thai financial system and public confidence in the banking sector.