The UK financial services sector has experienced market shocks as diverse as the global financial crisis, geopolitical events, technology failures and a hostile cyber environment. In response, regulatory attention is focusing on how firms and financial market infrastructures (FMI) improve their operational resilience to high-impact events.
In July 2018, the Bank of England and Financial Conduct Authority published a discussion paper recognising the complexity of the financial services sector and proposing ways firms and FMI can improve operational resilience to severe but plausible events.
I would like our firms to be on a WAR footing: with-stand, absorb, recover.
Lyndon Nelson, Deputy CEO & Executive Director, Bank of England
In our latest report, we outline how the financial services sector can get ahead of the regulator and enhance operational resilience within their organisations. Our practical guide identifies five opportunities and includes worked examples. These opportunities are:
Firms and FMI should express their tolerated threshold for severe but plausible disruption to important business services as well as setting an objective to ensure that threshold is not breached. These are not just time-based but clear business statements of outcome-based objectives.
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As leaders and pioneers in resilience and crisis management over the last 10 years, we have a depth and breadth of expertise and are well placed to help firms and FMI understand the complexities and nuances involved in building operational resilience.
If you would like to discuss any of the issues or opportunities raised in this report, get in touch with one of our team.