Article
FINMA Circular 2023/1 on Operational Risk – What changes for banks in Switzerland?
From the 1st of January 2024, banks and other financial intermediaries will have to comply with the requirements of the new FINMA Circular 2023/1. What is the specific impact on how financial institutions manage operational risks and how can companies navigate complexities and implement changes in time to be compliant?
The Swiss Financial Market Supervisory Authority (FINMA) refines its supervisory practice regarding the management of operational risk with the fully revised FINMA Circular 2023/1. In particular, the revision reflects significant changes with potential implications on how companies are expected to manage operational risk, particularly in connection with information and communications technology, handling critical data, managing cyber risk and ensuring operational resilience.
What is the impact for the financial sector?
What are the main challenges?
How can Deloitte help?
FINMA’s fully revised circular on operational risk and resilience contains several complex elements that require a tailored approach in implementation efforts. Deloitte offers a 4-week rapid diagnostics assessment to evaluate your company’s current state of readiness, identify critical gaps in relation to the new requirements, followed by a joint review of recommended measures.
Conclusion
Financial institutions need to prioritise effective management of cyber risk and protection of critical data assets, in adherence to FINMA circular 2023/01. We recommend our four-step diagnostics approach, which helps organisations to assess their operational resilience and readiness, identify critical gaps and review mitigation measures necessary to strengthen operational resilience.
Our team of diagnostics team of experts in operational risk management, resilience and cyber have successfully supported numerous institutions in the banking sector in addressing the challenges that stem from operational risk. We would be delighted to assist your organisation in achieving compliance with this new regulation revision.
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