Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697631705711.pdf (Antigua and Barbuda)
Issue No.

1, 2020 Introductory Note: In the last issue of to avoid potential cash slippages from our newsletter the growing risk of an already financially challenged cyber security was discussed along with sector.

Against this backdrop, implications and possible strategies to Business Continuity Management be incorporated in the internal control (BCM) will be discussed in this issue, policy.
Who would have thought, that as an integral part of risk management the year 2020 would present a set of response to current and possible unique challenges that have now taken implications of the COVID-19 center stage, thanks to the COVID-19 pandemic.

Pandemic!

Included in this Issue… Companies are grappling to develop  Introductory Note policies such as remote working solutions to address business disruptions triggered by the ongoing pandemic.
This brings its own exposures which must be addressed  Managing Operational Change During a Pandemic – A Regulatory Perspective   Legislative Updates Statistical Updates …and more!
FINANCIAL SERVICES REGULATORY COMMISSION IBCs and Corporate Management & Trust Services Division 1 Business Continuity Plans (BCP) THE FOUR STAGES OF A BCP incorporate several processes geared at addressing likely impacts of operational disruption imposed by internal/external events such as cyber threats, natural disasters or pandemics.
Whether a BCP is maintained or being drafted, now is an excellent time to review policies and procedures that address likely impacts of material loss to business operations resulting from fraud and related crimes that may be elevated due to the ongoing pandemic.
The following discussion will consider Business Impact Analysis Risk Assessment Risk Management Risk Monitoring & Testing Business Impact Analysis key components of an effective BCP Recent lockdown and remote working as part of the risk management arrangements presented a practical framework.
“Now is an excellent time to review policies and procedures that address likely impacts of material loss to business operations resulting from fraud and related crimes that may be elevated due to the ongoing pandemic.” opportunity to identify business priorities which need to be maintained during emergencies and business interruption events.

A business impact analysis (BIA) is the first stage of the BCP and should assist management in the prioritization of essential business functions.
Benchmark considerations to conduct an effective BIA should include the following: FINANCIAL SERVICES REGULATORY COMMISSION IBCs and Corporate Management & Trust Services Division 2  Assessment and prioritization of all Risk Assessment business functions/processes and interdependencies;  Identification of the potential impact of business disruptions resulting from uncontrolled, non- specific events on business functions and processes;  Assessment of the legal or regulatory environment.
For instance, the possibility of business relocation will have security and reporting implications;  Estimation of maximum allowable downtime and acceptable level of losses associated with business interruptions; and  Estimation of recovery time and recovery point objectives.

1.

Evaluate Assumptions 2.

Analyze Threats 3.

Prioritize Disruptions 4.

Analyze Gaps The second stage of a BCP involves a robust stress-testing of key business areas geared at evaluating the effectiveness of the BIA.
Businesses are encouraged to evaluate all stress scenarios involving personnel, systems, data, location etc.

At minimum, the risk assessment stage should include The above considerations are dynamic the following: and involve interrelated company-wide factors which should be proportionate to the size and complexity of the business.
 An assessment of the BIA assumptions through various stress test scenarios which incorporates micro and macro risk factors;  Business impact analysis which considers various factors.

For FINANCIAL SERVICES REGULATORY COMMISSION IBCs and Corporate Management & Trust Services Division 3 instance, what are the implications flexible or easily adapted to any given of the Global pandemic on threat scenario.

customer markets, technological infrastructure, systems and data?
Similarly, what are the implications of a major hurricane on location?

What legal or regulatory concerns, if any, must be addressed in a remote working situation?

 Prioritization of possible business interruptions through severity and probability assessments.

 Policies and procedures assessments to address, how the BCP will be implemented based on prioritized potential business interruptions.

Policy assessments are geared at identifying gaps between a business’s procedures versus the BCP.
The outcome of this activity will underscore any additional risk areas that must be incorporated in the BCP process.

Risk Management is the third stage of the BCP process and involves the identification, assessment and control of a business’s risk areas through the Taking into consideration that BCM process.
Before proceeding business threats come from many with this part of the discussion, areas such as malicious activity, natural consider the following: disasters, pandemics or technology failure, it is important that stress testing assessments focus on the impact of threats rather than one specific threat.

This will help to ensure a comprehensive assessment which is 1.

Does your business have a written BCP?

2.

Does your BCP address risk factors at the company-wide level?
FINANCIAL SERVICES REGULATORY COMMISSION IBCs and Corporate Management & Trust Services Division 4 3.

Is your BCP known to all relevant  Specific in identifying the staff?

Businesses, regardless of size and complexity, should document a BCP that addresses business recovery strategies and procedures for critical business areas following disruptions.
implementation triggers;  Specific in outlining the immediate steps to be taken after a business disruption;  Flexible in order to adequately respond to unexpected threat Further, it is the board’s and scenarios; management’s responsibility to ensure  Impact specific rather than event- that such a plan is subjected to focused; periodic reviews and amendments, as necessary.
To ensure proper implementation, the BCP must also be known to all relevant personnel who should be trained on carrying out the action plans.
At a minimum, the BCP should be:  Documented and stored (electronically and off-site) in the event the original copy is destroyed or unreachable during a threat;  Annually reviewed and approved Businesses are reminded that the development or maintenance of a BCP which is outsourced to third parties does not alter the board and senior management’s responsibility to develop, implement, review and maintain a plan which addresses the unique business disruption exposures and other exigencies.
Risk Monitoring & Testing by the board and senior The final stage of the BCP cycle is management;  Shared with employees; arguably the most critical and one which is often part of the supervisory review process.

Risk monitoring and FINANCIAL SERVICES REGULATORY COMMISSION IBCs and Corporate Management & Trust Services Division 5 testing ensures that the BCP remains business.
With this in mind, the adequate and relevant throughout foregoing are benchmark changing business environments and considerations for building and exigencies.

BCPs should be tested on maintaining an effective BCP.

Critical a holistic or company-wide level to to the success of the entire process is ensure that expectations are the financial component.

An effective achievable.
At minimum, the testing BCP should include liquidity machinery should consider material considerations to address cash changes in the business and its external requirements for restoring downed environment and should include the systems; implementing remote working following:  The assignment of roles and responsibilities for implementing the testing program;  An assessment of the BIA and risk assessments;  Communications testing; and  Board and senior management evaluation of the testing program, the results and recommendations.
It should be noted that revisions to the BCP which emanate from test results should also be documented and tested.

As noted before, your BCP must be scalable to adequately match the nature, complexity and scope of the arrangements; and accessing alternative cash delivery sources during times of pandemic, natural disasters and the like.
Key personnel requirements are other critical success factors of an effective BCP as the issue of succession planning should also be considered as a risk mitigation strategy.

Reminder!!

In response to the ongoing COVID-19 pandemic, we invite you to take advantage of our submission document electronic portals via the eRegistry or email.

Also inquire with our Finance team on making electronic payments.
FINANCIAL SERVICES REGULATORY COMMISSION IBCs and Corporate Management & Trust Services Division 6 LEGISLATIVE UPDATE STATISTICAL UPDATES The Commission continues to monitor the range of registration services for trends which may be indicative of the ongoing global pandemic.

The following chart provides an overview of the percentage change in new registrations and other key services for the period ended June 30, 2019/2020.
The analysis has shown a 16.95% decline in new company registrations compared to the same period in 2019.

Conversely, a 15.38% increase was recorded COGs while AR remained consistent.

The Law Miscellaneous (Amendment) Act, No.

3 of 2020 was gazetted on March 30, 2020.

This Act amends several legislations, including the International Business Corporations Act (IBC Act), in an effort to maintain the jurisdiction’s high rating following the second round mutual evaluation report of Global Forum.
Importantly, this Act amends several sections of the IBC Act to remove references to bearer shares which is a significant step in immobilizing their use in this jurisdiction!

The department will be issuing a circular to provide further information on company registration processes pursuant to this important change.
COG COI COD Certificate of Good Standing Certificate of Incumbency Change of Directorship RTMTS Reinstatement of Company AR NR Annual Renewals New Registrations FINANCIAL SERVICES REGULATORY COMMISSION IBCs and Corporate Management & Trust Services Division 7 CROSSWORD PUZZLE – BUSINESS CONTINUITY Alarms Avalanche BCP BIA Communications Plan Crisis Mgmt Damage Disaster N S P S A R A F R U A I M C C I S T I O H C O A Emergency Evacuation Explosion Failover Generator Learning center Safety Member service Plan Administrator Recovery Regulations Reputation Social Media Terrorism Tsunami Vandalism Business Continuity Disaster Declaration Colo Site earthquake Disruption Garagetown Warehouse E S D T R A X R L S T V A N D A L I S M A B O E Fire Flood Pandemic MOC Natural Disasters Security Robbery RTO Our Mission: To develop Antigua and Barbuda as an effectively regulated, well managed major financial services jurisdiction WE INVITE YOUR QUESTIONS & COMMENTS IBCs & CMTSPs Department
 Financial Services Regulatory Commission Email: registryandCMTSP@fsrc.gov.ag FINANCIAL SERVICES REGULATORY COMMISSION IBCs and Corporate Management & Trust Services Division 8