With a large-scale earthquake predicted for the Lima area, potentially causing catastrophic damage and loss of life, the Peruvian financial sector is getting ready to test its widest-ranging business continuity exercise this October.
The banks are focusing on communications and cash supplies. Their planning is based on previous seismic events such as the Feb. 2010 earthquake in Chile, where both fixed-line and mobile phone networks were damaged and overworked, and only 72% of institutions were able to re-establish contact with key stakeholders. Infrastructure and communications failures were identified as key obstacles to recovery at that time.
As a result, the Chilean central bank now has a backup radio communication system in place, and the Central Bank of Peru is following its lead. 100 key bank officers have also been set up with smartphone apps allowing them to access and control bank systems remotely during crises.
Read more at: http://www.risk.net/operational-risk-and-regulation/news/2370864/peru-banks-plan-for-business-continuity-after-earthquake