Cross-Functional Coordination in DR and BCP for Treasury

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.

1. Role of Treasury in Organization-Wide Continuity

1. Liquidity Management
   • Ensure funds are available to support recovery efforts and operational needs.
   • Collaborate with finance and operations to prioritize cash flow during disruptions.
2. Payment Continuity
   • Work with IT and banks to ensure payment systems remain operational.
3. Example: A pharmaceutical company’s treasury team partners with supply chain management to pre-fund critical supplier payments during a global crisis.

2. Coordination with IT Teams

1. 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.
2. 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.

3. Collaboration with Legal and Compliance Teams

1. 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.
2. 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.

4. Cross-Functional Continuity Drills

1. 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.
2. 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.