- As financial institutions and their customers prepare for Hurricane Irene, lessons learned from Hurricane Katrina can be particularly helpful.
- The guidance, issued by the Federal Financial Institutions Examination Council in 2006, highlights unique challenges created by significant storms, including communication and power outages, destruction of facilities, and interruption in availability of certain branches and ATMs.
- Business continuity plans generally worked well in enabling institutions to meet these challenges and restore operations swiftly.
- Preparation is critical to the speed at which essential services can be restored. Key lessons learned are:
- Anticipate disruptions in communication services and the ability of critical staff to reach their assigned recovery area, possibly over an extended period of time.
- Anticipate that financial institution operational facilities could be damaged or destroyed, creating a need for alternate facilities. The location of a back-up site can be critical to successful recovery efforts.
- Be prepared to operate in a “cash only” environment.
- Recognize that a financial institution’s involvement in neighborhood, city, state, and federal volunteer programs can facilitate a community’s recovery from a catastrophic event.
FDIC-Supervised Banks (Commercial and Savings)
Chief Executive Officer
Chief Lending Officer
Lessons Learned From Hurricane Katrina: Preparing Your Institution for a Catastrophic Event
Thomas F. Lyons at 202-898-6850, or firstname.lastname@example.org
FDIC Financial Institution Letters (FILs) may be accessed from the FDIC's Web site at www.fdic.gov/news/news/financial/2011/index.html.
To receive FILs electronically, please visit http://www.fdic.gov/about/subscriptions/fil.html.
Paper copies of FDIC Financial Institution Letters may be obtained via the FDIC's Public Information Center, 3501 Fairfax Drive, E-1002,
Arlington, VA 22226 (1-877-275-3342 or 703-562-2200).