Operational Resilience

Overview: 

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.

 

Other related workstreams

Outsourcing

The increasing use of outsourcing by regulated entities is of growing importance to a number of supervisory authorities.

Cyber and Technology

In recent years, cyber security has increasingly become the top global risk for business, with regulators and policy-makers also paying increased attention to financial institutions’ cyber security planning.