Hedge Fund Business Continuity Planning Prompted by Tornado Outbreak
It’s a simple question: is your hedge fund business continuity plan in place to help you prepare for a disaster?
It has been a historic season for tornadoes. The recent twister that ripped through Joplin, Missouri killed more than 130 people, making it the deadliest storm in nearly 60 years.1 And just last night, seven tornadoes touched down in western Massachusetts, creating panic and wreaking havoc in a state that rarely sees that type of weather.
This year’s tornado season proves that even when the circumstances seem unreal and impossible, the worst can still happen, therefore your hedge fund or investment management firm needs to be prepared.
Here are a few reminders about how to prepare your hedge fund for a disaster situation:
- Establish a BCP. First step’s first. You have to have a business continuity plan in place before you can execute it. Work with internal executives or a third-party service provider to craft a BCP plan that best suits your firm.
- Identify Key Decision Makers. You’ll need to know which individuals will be responsible for activating the business continuity plan and communicating with employees.
- Establish Communication Procedures. How will you notify employees? Examples include a call tree or an automated notification system.
- Determine Remote Capabilities. Will there be a central meeting location? Can employees work from home? Do you have enough Citrix licenses to support an increase in remote users?
- Consider Providing Employee Assistance. Depending on the scope of the disaster, you may want to consider offering employees some type of assistance to cope with the aftermath.
The most important factor in hedge fund business continuity planning is communication. If you are upfront about assigning communication responsibilities, it will ensure that employees are properly notified of business continuity procedures and will make for a smoother transition back to normalcy.
Does your hedge fund have a business continuity plan in place?1, ABC News