Only a few weeks ago, the Bank of England (the Bank), Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) published a shared policy summary and co-ordinated consultation papers (CPs) on new requirements to strengthen operational resilience in the financial services sector.
It came on the back of a number of statements of leading UK regulators that highlighted the importance these authorities assign to improving the operational resilience of firms and Financial Market Infrastructures.
The PRA went on to share its vision that would see operational resilience into the UK’s prudential framework by the end of 2020, side by side with the financial resilience pillar. It underscores the growing threat from cybercrime and the UK has made it clear that will put firms under scrutiny in light of IT failures in financial services that is likely to see increased enforcement action in this field. Likewise, the FCA published further guidance in January regarding the implications for operational resilience for firms using outsourcing and other third party service providers, and what it expects from them.
The British regulators are not alone in their focus on this matter. Authorities around the world have put operational resilience in a time of crisis at the top of their agendas.
In an ever more complex financial world, meeting regulatory requirements has become increasingly difficult, but the rise of RegTech solutions has created many valuable tools. It has revolutionized the way financial organisations meet theserequirements, but also provides banks with the resilience they need to respond appropriately, stand firm and remain operational in a crisis.
Karl Viertel, founder and CEO of Alyne, the RegTech operating out of Munich, New York, London and Melbourne, explains in an article why Operational Resilience should form an integral part of a firm’s overall strategy and it should extend beyond business continuity and disaster recovery. Read about it here.
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