Instance Of Business Continuity Management In Chinese Central Securities Depository Organization

In 21 Century, the world is becoming more globalized. Information and finance are running more important roles. Enterprises are faced with a more complex environment to deal with varies of risks and crisis, and they need a more effective way when risks and crisis happens.Business Continuity Management (BCM) is a completely new methodology to help enterprises and organizations in reply on risks and crisis. BCM is a perfect integration of traditional risk management, crisis management, disaster recovery and emergency planning, with focus on how to keep the main business running continually. BCM try to help enterprises to survive and to restore when emergency happens with a new concept.With the rapid developing of Chinese bond market, being the basic elements of bond market, business like book entry, custody, settlement & clearing are centralizing to a Central Securities Depository (CSD) gradually.In china, after a decade of efforts, The Central Government Securities Depository Settlement & Clearing ltd (CDC) has possessed a CSD functionality with international standards. CDC is acting as one of the foundation elements of Chinese bond market. It provides a very important technical platform for government & regulators (such as PBC) to manage bond market and to transfer monitory policy to the market. All the key businesses ran by CDC are supported by a large and complex IT system—the Central bonds Integrated Operation System(CBIOS).Being a CSD of Chinese bond market, the risk challenge and business impact that CDC faced have its own traits.First, all of CDC's businesses are aimed to provide industry services to participants of bond market for the operations of investment & financing.Second, with the rapid developing of the Chinese bond market, as the CSD of Chinese bond market, CDC has to provide higher quality and specialized services, and almost all of the businesses are integrated within IT systems. For that reason, CDC's operation risks are mainly concentrated on availability and stability of IT systems than ever before. CDC's all series of services to bond market are tightly rely on the continuity of CBIOS. CBIOS has a direct impact to CDC's business and bond market's continuity.So, it's obligatory to find and build a exercisable, controllable management system which can help CDC to keep its businesses in continual. Using BCM methodology, enterprise like CDC will avoid risks above in a effective way.Under such underground, combining the special experience of the author's own, this article try to lucubrate instance and practice of BCM in a CSD organization like CDC. It include risk analysis within CDC, introduce of BCM theory and methodology, project management and prophase analysis of a BCM project in CDC, restore strategy of CSD business, planning of Business Continuity Plan (BCP), the correlation miscellaneous items of BCP. It consists of six chapters.Chapter 1 introduces the development of depository and settlement & clearance system of international security market, also introduces the depository and settlement & clearance system of China bond market, and a survey of CDC. By general analyzing the risk challenge and business impact of CDC as a CSD, it points out the necessary and imminence of practicing BCM in CDC.Chapter 2 mainly introduces the basic theory and methodology of BCM. By introducing produce and development of BCM, BCM methodology, with comparison of BCM in China, the article try to analyze issues and disadvantage of BCM in China, and bring forward how a BCM project to be built and run.Chapter 3 is one of the emphases. The first 2 steps of a BCM flow include BCM project management and prophase analysis. In a BCM project, besides the three essential elements of cost, time and quality, BCM most focus on classifying incident and crisis by a scalable way. It also tells how to organize risk analysis and business impact.In chapter 4, another important step of BCM flow-–recovery strategy of CDC is discussed. By analyzing the object of recovery strategy and resource management, the recovery strategy on crisis of CDC and choice of restore are fully discussed.Chapter 5 discusses about planning of CDC-BCP, the third important step in CDC-BCM flow, which includes confirmation of object, principles and essential elements, the general architecture of BCP planning.Chapter 6 discusses farther about other steps of CDC-BCM, which should not be ignored, including crisis communication, rehearsal and maintenance of CDC-BCP, popularization and education inside company, items of summarization and circulation of CDC-BCP.CDC-BCP's principles include customer's benefit first, best efficiency, defending before crisis happens. It's established for dealing with emergency to CDC IT systems (like CBIOS) correctly, timely and effectively. It should enhance the ability of crisis treatment and disaster recovery.This article tries to discuss and to build a best instance of BCM in CDC business. By executing effective CDC-BCP when emergency happens, CDC is able to lowest the impact of business interruption to Chinese bond market, also to keep the financial loss and reputation loss at the lowest level.