By Beverly Chandler, Opalesque London:
The lion’s share of the global hedge fund industry found itself at the epicentre of the north eastern corner of the US that Storm Sandy hit with such ferocity on 29th and 30th of October. For the non-American hedge fund community, yesterday was as if someone had switched the power off in the US, as communications pretty much stopped and news, once the country reached daybreak on the 30th October, came in the form of increasingly shocking images of devastation and post-Apocalyptic scenes.
Time for all the disaster recovery and business continuity planning to step up to the plate but with Storm Sandy’s breadth of 800 to 1000 miles, concerns are that data recovery facilities might have been a tad too close.
One hedge fund administration consultant, interviewed by Opalesque, says: "I've done a lot of operational due diligence visits on the major East Coast fund administrators and they all have good specialist secondary disaster recovery sites - but they are always about 30-50 miles from their main office. This means that Sandy will have pounded both their primary and back up business sites - so it raises the question did their disaster recovery plans work and could they offer a seamless service to their clients? I would doubt it - if their staff couldn't even get to the back up sites. They may have been able to offer a skeleton service by people working from home - if they were lucky enough to have power!"
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