21 June 2022
Duncan Mackinnon of the PRA gave a speech at the 9th Annual Operational Resilience for Financial Institutions Summit recently, which provided a fascinating view of the supervisory, and regulatory position from the PRA’s perspective.
Given KA2’s deep understanding of Operational Resilience and our experience working with organisations to implement robust standards to meet the joint Bank of England, FCA and PRA regulations, we share our thoughts on the next stages of the operational resilience journey as we head towards March 2025.
Compliance: The Next Stage
Whilst most organisations have complied with the regulation’s basic requirements by the 2022 deadline, numerous challenges have yet to be resolved, such as how to set impact tolerances and conduct meaningful scenario testing, the granularity of business service taxonomy, and interaction with the board. For a few, the cross-organisational nature of operational resilience has resulted in a change in thinking around the required organisational structures and information to support resiliency and other cross-organisational initiatives. Do you understand the challenges posed by the next stage of the operational resilience journey and how to address them and even turn them into a business advantage?
Business Services: Resilient by Design
We recommend setting a defined outcome to embed best practice as the next stage in the evolution of Operational Resilience. Adopting a resilient by-design approach to current and future business services will make it a more seamless and commonly understood process in the organisation. Have you defined your strategy to be resilient by design?
Toolset: Data vs Visualisation
There is an ongoing debate among many involved in risk management about the importance of dashboards to deliver visibility of the operational resilience position and, specifically, the ability to evidence this position. However, based on many customer engagements and our collaborations with ServiceNow, it is clear that the timeliness and accuracy of information are the more important elements to genuinely understanding the risk landscape, particularly when a severe disruption occurs. Have you understood how to ensure that your data is accurate and up-to-date and how best to leverage it?
Using the KA2 Smarter Operational Resilience Framework and our detailed knowledge and experience in designing and implementing effective BC/DR processes, we guide clients to improve these essential pillars for effective operational resilience.
To discover how we can help your organisation understand and comply with the BoE/FCA/PRA policy, contact the team on 0203 978 1818.