Assessment on the Level of Preparedness for Disaster Risk Governance and Resiliency of Banking Industry in the Philippines: A Survey Method Approach

Abstract

Disaster risk governance is the way in which the authorities, public servants, media, private sector, and civil society coordinate in communities, and on regional and national levels in order to manage and reduce disaster and climate related risks. Financial system must continue, especially after a major disaster occurs. Banks composes majority of the financial institution that any disruption to its operations affects the community and cripples the economy. This study aims to assess and analyzethe level of preparedness of banks in terms of disaster risk governance as well as it’s resiliency to the given crisis. A survey questionnaire was used to several commercial banks in the Philippines to determine the banks level of preparedness and if disaster risks governance is present. This study assesses the banks in terms of its compliance with local and international standards on disaster preparedness, back-up system, and strategic operational plan. The results show that most of the banks are in compliance with the local standards but a low compliance in international standards. In the case of disaster preparedness it resulted in an average compliance. There is a high compliance in terms of back-up system and lastly most banks have yet to have a very good strategic operating plan. The results indicate that there is a need to conform to international standard to strengthen banks resiliency. An average compliance in terms of disaster preparedness may not be enough especially with the recent increase in the strength of the different disasters. The study recommend that Banks must have risk identification and risk assessment activities to properly assess the present location and possible risks that some of their branches might face in case a natural disaster occurs. Banks must also have a central area that will be their point of information and communication in case of natural disaster. This central area will also be the one to conduct operations and communicate with other related agencies. Information and communication are vital in the area of resiliency, as it will give them things that they need to prepare and to get back to normal.