There is a lot of pressure on the financial services industry right now. Disruption from FinTech innovators, data driven product developments, complex compliance regulations and mergers and acquisitions are just some of the factors on the minds of many executives.
These major industry shifts are opening the doors for new and unpredictable threats, requiring organizations to take action in order to protect client’s, shareholder’s and their own assets.
Maintaining resiliency and keeping assets—whether personnel, data or physical property—secure is critical when it comes to client trust and loyalty.
Investing in Business Continuity Management
One of the best, most comprehensive ways to prepare and protect assets is through business continuity planning. Not only are business continuity requirements part of several major compliance standards including FFIEC, COSO and NASD, but this comprehensive strategy allows you to be agile enough to face cyber attacks, data breaches and downtimes brought on by crippling storms.
These threats are real. In fact, KPMG and Continuity Insight report that 65% of financial organizations reported experiencing an incident requiring BC plan activation in the past year.
Many organizations that have undergone an incident in the last several years have reported seeing drops in client retention. Cisco’s 2017 Annual Cyber Security Report notes that survey respondents reporting a breach, said that operations and finance were the functions most likely to be affected, followed by brand reputation and client retention. This is no surprise. Think back to Equifax’s 2017 data breach and how they are still struggling to repair not just their business but their brand reputation as well.
The business best practice that argues it is not only cheaper, easier and more effective to retain clients as opposed acquiring new ones, aligns with the need to take business continuity planning seriously in order to remain competitive.
How BCM Helps with Client Loyalty
So how exactly does having a comprehensive business continuity plan in place help with client retention and loyalty?
1. It Keeps Your Business Up and Running
Whether you’re processing transactions, placing investments in real-time or simply reporting on your clients’ returns, business continuity planning makes sure your day to day activities can remain in place, limiting client complaints and concerns, and as a result, keeps their trust intact.
2. It Offers Peace of Mind
Business continuity management is tangible proof that you take client data security seriously. By letting clients know that you have a plan that meets compliance standards, you can show that you are a prepared and reliable partner.
3. It Shows You’ll Go Above and Beyond
While business continuity is included in several compliance standards, taking your program beyond compliance shows your business culture and value. Doing more than just the bare minimum shows that you’ll treat their business the same way.
- It Supports Business Growth
With all the changes going on in the financial services industry, taking the time to put a plan in place in advance, allows your company to focus on what matters most—growing your business and ultimately finding more ways to better meet your client’s needs.
Don’t wait until it is too late to make client retention and loyalty a priority. Make an investment in growing and streamlining your business continuity management today.
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Written by Assurance Software
Assurance Software takes your company’s enterprise-wide business continuity and resiliency program to the next level. With Assurance as your go-to partner for continuity and resilience, you can confidently mitigate risk, manage recovery, and safeguard your employees, customers, operations and brands.