T. Rowe Price
Enhancing operational resilience to meet UK regulatory requirements
Around the world, regulators are placing an increased priority on financial services firms’ operational resilience. In the UK, the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) have published new policies aimed at strengthening firms’ resilience. These policies articulate the importance of UK-based firms identifying and maintaining Important Business Services (IBSs) in times of market or business stress to protect consumers, the market and firms themselves.
T. Rowe Price, a global investment manager with more than $1.5 trillion in assets under management. The asset manager’s leaders wanted to proactively prepare for UK regulatory requirements, while developing a culture of resilience across the firm.
Taking an agile approach, we worked with T. Rowe Price to rapidly build and deliver the operational resilience frameworks, tools and knowledge required to align with principles set out by UK regulators. PA brought a wealth of industry insight, organisational agility expertise, operational resilience, corporate governance and regulatory compliance expertise to streamline compliance and equip internal teams to own this process moving forward.
- Identified the Important Business Services (IBSs) subject to UK regulatory requirements
- Delivered a high-level operating model, governance structures and testing approach
- Used organisational agility delivery principles to prepare the client to meet UK requirements for multiple services in just 14 weeks
Providing financial services in a globally connected world
In addition to financial market events, financial services firms face a wide array of operational risks. These risks include legacy technology systems failures, cloud services outages, cyberattacks, and exposure to third-party incidents, among other issues. Due to the interconnectedness of systems and players these kinds of events are often experienced across the broader market.
Financial services firms must be able to withstand such potentially disruptive events by implementing operational resilience plans in line with regulatory requirements. However, more than 90 per cent of UK Financial Service staff surveyed say their organisation is struggling to keep pace with the rate of change.