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Legal and Regulatory Requirements

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Many industries may find themselves bound by federal, state, and local laws or regulations that require them to implement various degrees of BCP. We've already discussed one example in this chapter—the officers and directors of publicly traded firms have a fiduciary responsibility to exercise due diligence in the execution of their business continuity duties. In other circumstances, the requirements (and consequences of failure) might be even more severe. Emergency services, such as police, fire, and emergency medical operations, have a responsibility to the community to continue operations in the event of a disaster. Indeed, their services become even more critical in an emergency that threatens public safety. Failure to implement an effective BCP could result in the loss of life or property and decrease public confidence in the government.

In many countries, financial institutions, such as banks, brokerages, and the firms that process their data, are subject to strict government and international banking and securities regulations. These regulations are necessarily strict because their purpose is to ensure the continued operation of the institution as a crucial part of the economy. When pharmaceutical manufacturers must produce products in less-than-optimal circumstances following a disaster or in response to a rapidly emerging pandemic, they are required to certify the purity of their products to government regulators. There are countless other examples of industries that are necessary to continue operating in the event of an emergency by various laws and regulations.

Even if you're not bound by any of these considerations, you might have contractual obligations to your clients that require you to implement sound BCP practices. If your contracts include commitments to customers expressed as service-level agreements (SLAs), you might find yourself in breach of those contracts if a disaster interrupts your ability to service your clients. Many clients may feel sorry for you and want to continue using your products/services, but their own business requirements might force them to sever the relationship and find new suppliers.

On the flip side of the coin, developing a strong, documented business continuity plan can help your organization win new clients and additional business from existing clients. If you can show your customers the sound procedures you have in place to continue serving them in the event of a disaster, they'll place greater confidence in your firm and might be more likely to choose you as their preferred vendor. That's not a bad position to be in!

All of these concerns point to one conclusion—it's essential to include your organization's legal counsel in the BCP process. They are intimately familiar with the legal, regulatory, and contractual obligations that apply to your organization. They can help your team implement a plan that meets those requirements while ensuring the continued viability of the organization to the benefit of all—employees, shareholders, suppliers, and customers alike.

Laws regarding computing systems, business practices, and disaster management change frequently. They also vary from jurisdiction to jurisdiction. Be sure to keep your attorneys involved throughout the lifetime of your BCP, including the testing and maintenance phases. If you restrict their involvement to a pre-implementation review of the plan, you may not become aware of the impact that changing laws and regulations have on your corporate responsibilities.

(ISC)2 CISSP Certified Information Systems Security Professional Official Study Guide

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