Operational Resilience: Do You Have Critical Third Parties?

The UK supervisors recently issued another joint paper proposing further regulation. This time the regulatory eye is firmly focused on those third parties that have embedded themselves so well within the industry that they pose a significant risk to the sector, the UK economy, and global infrastructure.

The Regulators Perspective On Operational Resilience

The regulators have repeatedly reminded firms that they remain accountable for operational resilience regardless of whether they rely upon third parties to deliver their important business services.

However, the regulators acknowledge that:

“no single firm or FMI can adequately monitor or manage the systemic risks that certain third parties pose to the supervisory authorities’ objectives, including UK financial stability, market integrity and consumer protection.”

New Requirements For Critical Third Parties

Hence the proposals to implement requirements specifically for these critical third parties (CTPs).

Find out more about the upcoming changes.

Lavanya Rathnam

Lavanya Rathnam is an experienced technology, finance, and compliance writer. She combines her keen understanding of regulatory frameworks and industry best practices with exemplary writing skills to communicate complex concepts of Governance, Risk, and Compliance (GRC) in clear and accessible language. Lavanya specializes in creating informative and engaging content that educates and empowers readers to make informed decisions. She also works with different companies in the Web 3.0, blockchain, fintech, and EV industries to assess their products’ compliance with evolving regulations and standards.

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