What action must a firm take if it faces a power outage that disrupts communication with clients?

When a firm experiences a power outage that significantly disrupts its communication with clients, the most appropriate action is to activate its business continuity plan. This plan is designed to help the firm maintain operations and protect client communication during emergencies. A well-prepared business continuity plan will outline procedures to follow in the event of unexpected disruptions, ensuring that the firm can continue to provide services to its clients and manage the situation effectively.

This option emphasizes the importance of having proactive measures in place to keep operations running as smoothly as possible, minimizing the impact on clients and the business itself. By implementing the business continuity plan, the firm can address the disruption, maintain communication lines, and implement solutions like alternative communication methods or temporary relocation of operations.

While notifying FINRA might be a requirement in certain circumstances, this would typically depend on the severity and estimated duration of the outage. Simply discontinuing operations would not be practical or beneficial for the clients or the firm. Posting updates on social media may provide some immediate communication, but it does not represent a structured or adequate response to a disruption of operations, which is why activating the business continuity plan is the most effective choice.