financial institutions creating value in the post-9.11 world
A SWIFT / PROMETHEE report
ISBN 2 907587-11-02
Cover image:
"Untitled", 1987 - Béatrice Helg
Introduction by Leonard H. Schrank, CEO, SWIFT
Part I. DEFINING RESILIENCE
Chapter I. A financial system under stress
9.11 calls for a new definition of resilience in line with new types of threats, natural or intentional. Chapter 1 builds upon the SWIFT “capacity to bounce back” definition to identify three interlocking levels of risk mitigation, adjustment and learning.
Insights from Andrew Crockett
Chapter 2. Assets and networking capacities under threat
Several original conceptual maps are combined into a typology of the assets and networking capacities that each financial institution must protect.
Insights from Pierre Francotte
Part II. TESTING RESILIENCE: PERSPECTIVES FROM THE U.S., EUROPE AND ASIA
Chapter 3. Lessons from 9.11: the new U.S. agenda
How financial institutions and regulators in New York and Washington reacted on 9.11, cyberthreats and the situation one year later.
Insights from William L. Rutledge and Jeffrey P. Neubert
Chapter 4. European and Asian contributions to resilience
Enhanced Business Continuity plans can lead to cross-fertilize regional perspectives. Europe is ahead in adoption of global standards like the IAS, while Asia calls for focused approaches to emerging-markets vulnerabilities.
Insights from Sirkka Hämäläinen, Jean-Claude Trichet, Ki Chi Kwong and Joseph Yam
Chapter 5. The Edmond Israel Foundation’s survey of market practitioners
On risk and risk mitigation...
Insights from Marco Baggioli
Part III. TURNING RESILIENCE INTO VALUE
Chapter 6. Schumpeterian resilience: insights from ecology
The Panarchy school, led by C.S. Holling, has explored the combination of innovation and stability within natural and man-made "adaptive cycles". Several of its key concepts are relevant to financial institutions.
Chapter 7. Regulators, insurers and markets: the adaptive cycles of resilience
The longer time horizon of insurers and the capacity of regulators to help institutions learn from best practices have a key role to play in a resilient financial system. Yet, are intentional acts like 9.11 insurable? For regulators, what type of learning process was launched with Basle II?
Insights from Joel Ludvigsen, Dennis Cox, William L. Rutledge and Danièle Nouy
Part IV. MARKET INFRASTRUCTURES AS RESILIENCE PROVIDERS: AN AGENDA FOR ACTION
Chapter 8. Combining resilience and efficiency: the power of infrastructures
As illustrated by the Fed-sponsored Business Continuity Summit of February 2002, market infrastructures are essential to the Business Continuity of the financial industry, and can also be a powerful catalyst for collective learning and for the development of cooperative approaches.
Insights from Joel Ludvigsen, Joseph De Feo, David Hardy, Jeffrey P. Neubert, Roger Lee, John M. Trundle, Sir Andrew Large and Tjerk Veenstra
