Crisis management in the financial sector

The reliability of the financial system in all situations is of vital importance to society. Financial markets have become international in scope, with the extensive adoption of new technology. Although this has brought benefits, it has also increased the potential threats to the system, and particularly the system infrastructure. Authorities and other financial market participants need to be active both in prevention and in preparing to meet new threats as they arise. Increasing internationalisation has reduced the significance of national borders in financial market contingency planning. Within the European Union, a framework based on multinational agreements has been developed to allow advance preparation for potential crises affecting the financial system. This is being tested in exercises at both national and international level. Business continuity and contingency planning carried out independently by companies and organisations in the financial sector also make an essential contribution to maintaining the ability of the financial markets to withstand crises.