While giving testimony to the US Senate Committee on Banking, Housing, and Urban Affairs, Michael S. Barr, Vice Chair for Supervision at the Federal Reserve will confirm that operational resilience remains a priority.
In testimony scheduled for today, Mr Barr will tell the Committee:
“Financial institutions face significant challenges from a wide range of disruptive events. These include technology-based failures, cyber incidents, pandemics, and natural disasters.
“Such events, combined with banks' growing reliance on third-party service providers, expose them to a range of operational risks, which are often difficult to anticipate. When they manifest, these risks can affect the safety and soundness of affected banks and pose risks to US financial stability by limiting market functioning or undermining trust in the system.
“We at the Federal Reserve will continue to work in this area to help ensure that banks understand and manage these complex and evolving challenges and that consumers remain protected.
“Additionally, we are committed to working closely with other domestic agencies and international authorities to coordinate on supervisory approaches to operational resilience.”