Operational Continuity in Recovery and Resolution Planning

Exploring the Service Company structure

Operational continuity is at the heart of “business as usual”, but it takes on a particular importance in the context of recovery, resolution and post-resolution planning.

Regulators, resolution authorities and standard setters such as the Financial Stability Board (FSB) are asking banks to demonstrate that vital infrastructure and operations will continue to be provided throughout any stabilisation and restructuring process in the event of severe financial stress.

Critical Shared Services support one or more of a group’s material entities or business units in performing critical economic functions. A sudden or disorderly failure of these shared service would lead to a serious disruption in the performance of material business units or entities” 

This paper explores: 

  • how regulators are addressing operational continuity
  • the exploration of the service company structure
  • the challenges to the service company structure
  • areas to consider before implementation
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