Regulators call for action on operational resilience
Black Swan events – the things you think will never happen - can and do happen. No matter how resilient your firm is, there are always unexpected external threats and risks beyond your control. From the credit crisis and the Covid-19 pandemic to floods and fires and famine, your organisation is vulnerable.
Yet, if you take a more holistic view to threats - and how you can adapt to them - you can vastly increase your operational resilience. A white paper from GreySpark, commissioned by the ITRS Group, said that the latest avalanche of regulatory activity relating to operational resilience is a call to action. It is time for every company to update – or create – their operational resilience practices and policies.
Multi-jurisdictional challenges GreySpark notes that, even prior to the onset of the Covid pandemic, regulators and standards setters worldwide were focused on how firms can bolster operational resilience. They are currently laying out what is expected you’re your operational resilience policies and processes. An integrated financial world - with its cross-border service delivery interdependencies - means that the resilience of a firm’s services in one jurisdiction may depend heavily on different supporting assets or processes located in other jurisdictions.
Assessing the feasibility of a multi-jurisdictional approach to operational resilience requires you to understand the full extent that regulatory demands will place on your firm - and the consequential impact that the requirements will have on your strategies and business models. Regulators, despite their differences, are all aiming to create a financial services sector that is resilient to operational disruption. This article explores the similarities and differences in operational resilience regulation to help firms navigate the challenges of building multi-jurisdictional operational resilience policies and processes.
To read Greyspark's white paper in full, please click below.