|File Size||3.46 MB|
|Create Date||January 7, 2019|
|Last Updated||January 9, 2019|
In the years since the financial crisis regulators have focused on improving the financial resilience of banks. This year will see attention shift from financial to operational resilience. Regulators expect firms to plan on the assumption that disruption will occur and to set thresholds for the amount of disruption that could be tolerated.
Operational failings risk profound consequences for business models, markets, consumers and workforces placing resilience high on the regulators agenda. Regulators want Boards and executives to assume disruption to systems and processes will occur and so have back-up plans and recovery options in place.
Risk leaders must recognise that assessing individual risks in isolation is not enough to identify plausible scenarios; knowing the potential cumulative impact should it all go wrong at the same time is key. Operational resilience is a challenge but given the nature of the risk it is of critical importance.