In March 2021, UK regulators set out their requirements and guidance to strengthen operational resilience in the financial services sector and we are now only 2 months away from the first important deadline.
By March 2022 the PRA and FCA expect in-scope firms to have:
- Identified their important business services (IBS)
- Set impact tolerances for the maximum tolerable disruption
- Carried out mapping and testing to an appropriate level of sophistication
Identified any vulnerabilities in their resilience
Completed a self-assessment document outlining their current state of resilience
Also, as soon as possible after 31 March 2022, and no later than 31 March 2025, firms must have:
- Completed the mapping and testing
- Made the necessary investments to enable them to operate consistently within their impact tolerances
Complying with the regulators' operational resilience requirements is not straightforward and requires time, resources, cross-departmental collaboration and board-level sponsorship.
Boards and senior management are required to focus on clearly articulating and understanding the inherent risk levels of their firm's Important Business Services, assessing the firm’s readiness to respond to potentially disruptive scenarios and ensuring a robust approach to resilience.
As the final countdown begins for the first deadline, some firms are still getting to grips with operational resilience and some are not making enough progress with their programmes to achieve compliance by the deadline.
Are you ready for the first deadline? If you need help, FourthLine has a team of expert consultants that can help you implement your operational resilience framework in time.
How FourthLine can help:
FourthLine is working with financial services clients to help them achieve compliance and react to the challenges of operational resilience, through a mixture of consulting and resourcing propositions.
You can get in touch here to find out more about our tailored and proportionate responses to Operational Resilience compliance.
For further insights on Operational Resilience, go to our Operational Resilience micro-site.