OSFI B-13: Ensuring Effective Disaster Recovery

ResilienceNow
Oct 21, 2024
2 min read

Introduction to OSFI Guideline B-13

The Office of the Superintendent of Financial Institutions (OSFI) Guideline B-13 requires Federally Regulated Financial Institutions (FRFIs) to establish comprehensive, enterprise-wide disaster recovery plans (DRPs) aimed at mitigating disruptions to technology-related services. Disaster recovery playbooks detailing the activation, execution, and management of these plans must be developed, maintained, and regularly updated. In addition, to meet operational resilience expectations, disaster recovery plans must align with broader Business Continuity Plans (BCPs) and Crisis Management Plans (CMPs).

Disaster Recovery Playbooks: Key Components

A robust DRP must clearly define roles and responsibilities for stakeholders involved in the response procedures to disaster scenarios. The disaster recovery framework should include a complete set of policies, standards, recovery procedures, guidelines, and action-oriented playbooks. These documents must identify and analyze dependencies, both internal and external, related to critical technology services and infrastructure.

Information Security and Data Management in Disaster Recovery

Information security and data storage are critical considerations within the DRP. The plan should provide detailed strategies for managing these elements during disaster scenarios, ensuring data protection and availability. Additionally, the DRP must address physical infrastructure, such as servers, data centers, and other key technology assets, ensuring that recovery efforts are not disrupted by damage or loss of access to these facilities. By addressing both digital and physical assets, the organization can ensure a comprehensive and effective disaster recovery process.

Testing and Updating the Disaster Recovery Plan

DRPs must be regularly tested under various scenarios, including new business developments, environmental risks, sustained outages, and historical threats. These tests help to assess the effectiveness of current recovery strategies and highlight areas for improvement. Testing results should be thoroughly reviewed, validated, and used to update recovery plans, strategies, and procedures to ensure they are aligned with current operational resilience objectives.

Third-Party Dependencies and Continuous Monitoring

The testing process also needs to evaluate the effectiveness of the DRP’s strategies for maintaining data backups and critical technology services during a disaster. FRFIs should ensure that both upstream and downstream dependencies, such as outsourced services or third-party technology providers, are adequately covered in the disaster recovery plan. Ongoing management of third-party risks, through continuous monitoring and active engagement, should be prioritized to minimize vulnerabilities.

Aligning RTOs and RPOs with Operational Resilience

Additionally, it is important to ensure that Recovery Time Objectives (RTOs) and Recovery Point Objectives (RPOs) align with the organization’s operational resilience targets. These objectives should be carefully considered when designing the recovery procedures to minimize disruptions and ensure the continuity of critical services.

Maintaining Operational Resilience through DRP

In conclusion, a well-structured DRP, aligned with OSFI B-13 and tested regularly, is essential for FRFIs to maintain operational resilience and respond effectively to potential disasters. By addressing technology, data, and third-party dependencies, and ensuring that plans are kept up-to-date with evolving threats and changes in business operations, FRFIs can enhance their readiness to face disruptions and continue providing essential services.

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