Doubts Raised About Business Continuity Plans in the Wake of Hurricanes Katrina and Rita According to AFP Survey of Treasury and Finance Professionals

October 11, 2005 – San Antonio, TX – Just over a third (37%) of treasury and finance professionals feel that their organization is well prepared to handle an event similar to Hurricanes Katrina and Rita, according to a survey conducted at this week’s Annual Conference of the Association for Financial Professionals (AFP). In the survey conducted yesterday, attendees at the premier event for financial professionals indicated that despite the tragic stories and extensive media coverage of the two hurricanes, few organizations have tested their business continuity plans.

In the AFP Survey, sponsored by JPMorgan Chase, the majority of respondents said that their organizations are only somewhat prepared with business continuity plans for an event similar to Hurricanes Katrina and Rita, such as weather-related, natural disasters or an act of terrorism. More than half (55%) believe their business is somewhat prepared, while 8% believe their organization is not prepared.

"Our survey demonstrates that there is a level of uncertainty among treasury and finance professionals that their business’ continuity plans are in a state of readiness that will enable them to continue operating in the case of an event similar to the two hurricanes," said Jim Kaitz, President and CEO of the Association for Financial Professionals. "With responsibilities that include managing trillions of dollars through the global financial markets each day, AFP members play an essential role in the U.S. economy, and in the days following the hurricanes they struggled to deal with a range of issues. AFP is committed to helping our members acquire the knowledge to enhance their business continuity plans."

Forty-seven percent (47%) of finance professionals said their organization’s operations were impacted by Hurricanes Katrina and Rita – 12% significantly impacted – while 53% of survey respondents reported that their organization suffered little or no impact.

Despite the fact that almost half of the respondents said their organizations’ operations were impacted, only 24% of finance professionals say their business or organization has recently tested its business continuity plans as a direct result of the hurricanes. Further 26% plan to test their business continuity plans while 50% of organizations have no such plans.

According to survey respondents, the primary areas addressed by most companies’ continuity plans include:

• Back Office Operation Redundancy– 72%
• Communications – 68%
• Offline Business Operations – 65%
• Corporate Communications – 58%
• Liquidity – 49%
• Account Payable/Receivable – 49%
• Employee Payroll/Emergency Funds – 49%

Despite the fact that staff and site protection and staff and recovery worker accommodations are significant issues along the Gulf Coast, these issues are not as frequently addressed in organizations’ business continuity plans according to the survey respondents.

Leaders in the treasury and finance profession are meeting in San Antonio this week at the AFP Annual Conference to discuss critical issues facing treasury and finance professionals. More than 150 educational sessions and workshops are being offered on the key issues and over 250 exhibitors are showcasing the latest products, services and technologies for the treasury and finance profession.

More than 1,000 finance professionals participated in the survey, which was sponsored by JPMorgan Chase and conducted on October 10, 2005 at the AFP Annual Conference. A copy of the results can be obtained at: www.AFPonline.org/research.

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The Association for Financial Professionals, headquartered in Bethesda, Maryland, supports more than 14,000 individual members from a wide range of industries throughout all stages of their careers in various aspects of treasury and financial management. AFP is the preferred resource for financial professionals for continuing education, career development, certifications, research, representation to legislators and regulators, and the development of industry standards. Sponsored by the Association for Financial Professionals, the CTP designation is the globally recognized industry standard for treasury and a requirement for a changing profession. More than 16,000 professionals have earned AFP’s certification since 1986. For more information about AFP, visit www.AFPonline.org.