Risk & Resilience.
More than simply weathering the perfect storm. Understand, measure and monitor your ability to withstand disruptions.
“Operational resilience: the ability of firms, FMIs and the financial sector as a whole to prevent, adapt, respond to, recover and learn from operational disruptions.” FCA
Risk & Resilience: Disruptions will happen, actions should be focused on response and recovery.
In 2018, on the back of a number of high profile disruptive events and against a backdrop of an ever more interconnected world, the PRA, FCA and Bank of England started a dialogue with the financial services industry to introduce the concept of Operational Resilience in a bid to better adapt and recover when things go wrong.
The emphasis is on “when”, not “if”. When businesses assume (severe but plausible) disruptions happen, it helps them to visualise their path to recovery and plan and test how to restore services to avoid harm. Harm to customers, other market participants, policyholders, the business itself, and the financial system as a whole.
Only by understanding the end to end chain underpinning each key service, the humans, technology, data, physical facilities and third parties, and planning for disruption of these resources, can businesses truly assess whether they are operationally resilient. A solid communication backbone then allows for swift action, clarity internally and externally, and a way to learn, remediate and drive investment decisions.
Interesting Projects:
