Introduction
Effective disaster recovery and business continuity require collaboration across multiple departments, from treasury to IT, operations, and legal teams. This chapter highlights strategies for fostering cross-functional coordination to ensure robust treasury resilience.
- Role of Treasury in Organization-Wide Continuity
- Liquidity Management
- Ensure funds are available to support recovery efforts and operational needs.
- Collaborate with finance and operations to prioritize cash flow during disruptions.
- Payment Continuity
- Work with IT and banks to ensure payment systems remain operational.
- Example: A pharmaceutical company’s treasury team partners with supply chain management to pre-fund critical supplier payments during a global crisis.
- Coordination with IT Teams
- System Recovery
- Jointly develop recovery protocols for TMS and ERP systems.
- Example: A financial institution’s treasury and IT teams test failover systems for uninterrupted payment processing.
- Cybersecurity Measures
- Collaborate on cybersecurity strategies to protect treasury data during and after disruptions.
- Example: Treasury integrates multi-factor authentication for all online banking platforms.
- Collaboration with Legal and Compliance Teams
- Regulatory Compliance
- Ensure recovery and continuity plans align with industry regulations (e.g., SOX, Basel III).
- Example: A bank’s treasury and compliance teams coordinate on data retention policies to meet audit requirements.
- Insurance Claims
- Collaborate on filing and managing insurance claims for covered losses.
- Example: A retailer’s legal and treasury teams expedite claims for business interruption insurance after a natural disaster.
- Cross-Functional Continuity Drills
- Simulated Scenarios
- Conduct organization-wide drills involving treasury, IT, operations, and legal teams.
- Example: A logistics company simulates a ransomware attack affecting payment systems and supply chain operations.
- Lessons Learned
- Use post-drill evaluations to refine coordination protocols and address gaps.
Conclusion
Cross-functional coordination is essential for effective DR and BCP in treasury. By fostering collaboration with IT, legal, compliance, and operational teams, organizations can enhance their resilience and streamline recovery processes.
