Operational resilience is the ability of a firm to identify and prepare for, respond and adapt to, recover and learn from an operational disruption. It is expected to be a key regulatory focus over the coming years. Regulators aim to bring about change in how the finance industry thinks about operational resilience in order to build a more resilient financial system. Specific issues include (i) poor governance and oversight of outsourced functions and third-party service providers, (ii) insufficiently resilient legacy IT systems with poor cyber security, and (iii) a lack of contingency plans for business disruptions.
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