Operational Resilience - What will it mean for IT?
Peter Walker, editor FStech interviews Richard Pike, CEO, Governor Software and other industry experts as he takes a look at Operational Resilience and what this could mean to the focus required by senior management and the board on their IT department and Data Security.
The PRA and FCA released a discussion paper in July this year looking at an approach to improve the operational resilience of financial firms and financial markets structures. The regulators see greater focus on operational resilience as vital in protecting the UK financial system, institutions and consumers and this paper possibly reflects how the challenge of operational resilience within firms continues to become more onerous with large scale technology changes and an increasingly aggressive cyber environment.
To quote the FCA website "It envisages that boards and senior management can achieve better standards of operational resilience through increased focus on setting, monitoring and testing specific impact tolerances for key business services, which define the amount of disruption that could be tolerated"
What is Operational Resilience: The Bank of England define it as "the ability of firms and the financial systems to absorb and adapt to shocks rather than contribute to them". Its focus is preserving the continuity of "critical economic functions for both the economy and financial firms customers and clients. This new regulation come off the back of recent IT failures and disruption in financial services firms.
To read the FSTech article click here