Operational Resilience Program – Steps to Conduct a Failure Modes and Effect Analysis (FMEA)
Basel defines Operational Resilience as a bank`s ability to deliver critical operations even at times of disruption. This would mean that the bank should have the ability to identify and protect itself from threats and potential failure. Failure Mode Effect Analysis is a step-by-step approach for identifying possible vulnerabilities or failures and prioritize the same […]
Impact Tolerance – Setting Impact Tolerance is a Vital Step to Build and Enhance Operational Resilience of an Organisation.
Impact Tolerance is quantifying the level of disruption, a critical business service can accommodate or absorb, before such disruption creates a significant impact or harm on the organisation or its customers. These impact could be financial, operational, regulatory etc. Regulators now mandating the financial services organisations to quantify these impact tolerances in terms of time […]
Operational Resilience Programme – Digitize your BIA (Business Impact Analysis) – An Important Step
Let’s first try and understand what is a BIA? Business Impact Analysis is a methodology which allows to predict the impact of disruption on your business functions and processes. One of the other objectives of carrying out a BIA is to help the firm to create a remediation plan in case the disruption event occurs. […]
Synopsis of the Operational Resilience guideline of MAS- Monetary Authority of Singapore
Operational disruptions, if not recovered speedily, may compromise the ability of financial institutions (“FIs”) to meet their business obligations, resulting in financial and reputational damage, as well as inconvenience to customers. MAS is concerned with both the soundness of individual FIs and the stability of the financial system. FIs are thus expected to have controls […]
Hongkong’s Regulations for Operational Resilience
On 22nd December, 2021 HKMA (Hong Kong Monetary Authority) came up with a Supervisory Policy Manual for Operational Resilience to provide Authorized Institutions (AI) with guidance on the general principles which they are expected to consider when developing their operational resilience framework. When is an AI said to be Operationally Resilient? An AI is said […]
Irelands’ Financial Service Sector Guidance on Operational Resilience
The Central Bank of Ireland`s objective of this guidance is to communicate to industry how to prepare for, respond to and recover and learn from an operational disruption that affects the delivery of critical or important business services. The Guidance aims to boost operational resilience and recognise the interconnections and interdependencies, within the financial system, […]
New Operational Resilience Regulation for Financial Institutions in United States (USA)
The Federal Reserve, the Central Bank of the United States in August 2021 has released a paper intended to help community banks assess threats when considering connections with financial technology (fintech) companies. This paper came up after the European Central Bank and the UK Prudential Regulatory Authority released regulations around operational resilience earlier in 2021. […]
Process Mapping is an important step in building an Operational Resilience Framework
The Covid -19 pandemic has clearly shown two trends within firms: The intensified use of technology and Operations can be managed through digital work force also. The pandemic-related disruption has impacted processes, people, service providers, customers, internal systems, employees, and facilities. Regulators across the globe are concerned that, as dependability on technology and digital way […]
Growing Importance of Operational Resilience in the Digital Era
Operational Resilience assumes that things will go wrong, and it will force organizations to plan on how to recover from the disruption. It is a mindset shift. Rather than trying and controlling disruptions, the approach is to assume disruptions will happen and plan accordingly on how to recover and comeback to normalcy from that state. […]
