Operational resilience is the next phase in the evolution of financial services regulatory policy.
We approach this resilience at a conceptual level, identifying 5 elements which make up a holistic operational resilience framework:
- Financial resilience – capital, liquidity, prudence;
- People resilience – governance, accountability, culture;
- Structural resilience – clarity of operational and legal structures;
- Regulatory resilience – maintaining regulatory compliance and flexibility to respond to evolving regulatory expectations; and
- Systems resilience – cyber and data security, including the ‘in the ether’ elements and the physical security of, for example, the premises of data centres and servers.
Our Guide on Operational Resilience provides a snapshot of our views on effective operational resilience for financial services institutions.
To help you stay up to date, our #OperationalResilience Hub features an interactive timeline which currently covers the UK, EU, Hong Kong and Singapore, alongside output from global standard setters such as the Basel Committee, the Financial Stability Board, IOSCO and IAIS. We are adding more major financial services centres and will be regularly updating the timeline; the next jurisdiction to be added will be Australia.
If you have any questions, get in touch. Our team of experts is here to work with you to ensure your approach to operational resilience meets not just regulatory expectations, but all the expectations of your customers, your people, your community, your stakeholders and partners.
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Disclaimer
The articles published on this website, current at the dates of publication set out above, are for reference purposes only. They do not constitute legal advice and should not be relied upon as such. Specific legal advice about your specific circumstances should always be sought separately before taking any action.