New Deloitte report offers guidance on enhancing operational resilience in the UK financial services sector
- Published: Thursday, 01 August 2019 07:43
In July 2018 the Bank of England and UK Financial Conduct Authority published a discussion paper on operational resilience and are expected to strengthen regulation in this area. Deloitte has issued a new report to assist financial sector organizations prepare. The report outlines ‘how the financial services sector can get ahead of the regulator and enhance operational resilience within their organizations’ and identifies five opportunities:
Firms and FMI should adopt a business services view to focus time, effort and resources on what is important to the customer, consumers more generally and the sector as a whole.
Business services should be prioritised by their relative importance against three main categories: financial stability; organizational viability; and customers and other market participants harm.
Firms and FMI should express their tolerated threshold for severe but plausible disruption to important business services as well as setting an objective to ensure that threshold is not breached. These are not just time-based but clear business statements of outcome-based objectives.
Firms and FMI should thoroughly think about how to manage prompt and meaningful communications during a disruption, including ensuring the necessary capacity to do so, to maintain confidence in the organization and reduce harm caused.
Once tolerances for disruption are established, they should be tested against dynamic scenarios to prove they can be met.