The Operational Resilience Policy by the FCA, PRA, Bank of England is now in effect from 31st March 2022. The importance of operational resilience is ensuring the UK financial sector is operationally resilient. Operational disruptions and the unavailability of important business services have the potential to cause wide-reaching harm to consumers and/or risk to market integrity, threaten the viability of firms and cause instability in the financial system.
This policy affects:
*Banks
*Building societies
*PRA-designated investment firms
*Insurers
*Recognised Investment Exchanges
*Enhanced scope SM&CR firms
*Entities authorised and registered under the Payment Services *Regulations 2017 or Electronic Money Regulations 2011
By now, you must already have:
identified your important business services that, if disrupted, could cause intolerable harm to consumers of your firm or risk to market integrity, threaten the viability of firms or cause instability in the financial system
set impact tolerances for the maximum tolerable disruption to these services
carried out mapping and testing to a level of sophistication necessary to identify important business services, set impact tolerances and identify any vulnerabilities in your operational resilience
conducted lessons learnt exercises to identify, prioritise, and invest in your ability to respond and recover from disruptions as effectively as possible
developed internal and external communications plans for when important business services are disrupted
prepared self-assessment documentation
After 31 March 2022, and by no later than 31 March 2025, firms must have performed mapping and testing so that they are able to remain within impact tolerances for each important business service.
Firms must also have made the necessary investments to enable them to operate consistently within their impact tolerances.
The #ResilienceThinkTank is here to explore challenges you may face with the new regulation or answer any questions to help you with your future work on staying compliant and more. Contact us today!
More information can be found on the FCA website.