Building the UK financial sector’s operational resilience discussion paper

The Bank of England, Prudential Regulation Authority (PRA), and Financial Conduct Authority (FCA) published a joint discussion paper (DP) on an approach to improve the operational resilience of firms and financial market infrastructures (FMIs). Released in July 2018, this discussion paper examines issues around resiliency for financial services firms, including within third-party relationships. Although cyber risk is a particular focus of the paper, the paper proposes that firms focus on the continuity of the most important business services as an essential component of managing operational resilience; set board-approved impact tolerances which quantify the level of disruption that could be tolerated; and plan on the assumption that disruption will occur as well as seeking to prevent it.