PA Consulting’s financial services expert, Sundeep Gupta, discusses the importance of strengthening operational resilience within the finance industry, following the publication of the FCA and PRA's requirements.
The article discusses how, by March 31, 2022, financial firms in the UK should be able to explain how fast critical parts of their businesses could recover from IT failures and other operational issues and how they would minimise the impact.
On March 29, the Bank of England’s Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) said regulated firms must set out the areas where disruptions could hit customers, the time it would take to return to normal and identify potential financial stability issues. Firms are expected to explain how long it would take individual parts of their businesses to recover from a disruption and prioritise the more important units for recovery.
Sundeep says: “Both the FCA and the PRA have made it clear that operational resilience is as important as financial resilience.”
He goes on to say that this means firms should be addressing key areas and activities such as governance and risk management, important business services and mapping, impact tolerances, testing, gain assurance around regulatory expectations and embedding operational resilience.