1 / 12

FCA Operational Resilience and Business COntinuity

SMCR compliance requires strategic risk management in today's complex regulatory landscape. Organizations must develop robust documentation mechanisms, create comprehensive control libraries, and leverage technology solutions to enhance governance. The key is proactive identification of emerging risks, continuous monitoring of regulatory changes, and maintaining clear accountability structures. Effective implementation ensures operational resilience and regulatory alignment in an increasingly challenging business environment.

leewerrell
Download Presentation

FCA Operational Resilience and Business COntinuity

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. 5 Minute Silent Webinars

  2. FCA Operational Resilience: Ensuring Business Continuity The Financial Conduct Authority (FCA) has issued clear guidelines on Operational Resilience for financial institutions, requiring robust plans to maintain critical business functions during disruptions.

  3. Understanding the FCA Operational Resilience Requirements FCA's Expectations Key Principles The FCA expects firms to have a comprehensive understanding of their operational resilience requirements, including identification of critical business services, impact tolerance levels, and effective strategies to mitigate potential disruptions. Operational Resilience must be based on five key principles: impact tolerance, identification of important business services, mapping of interdependencies, management of people and technology, and implementation of testing and monitoring.

  4. Identifying Critical Business Services Core Functions Impact Assessment Firms need to identify their core business functions, including areas like trading, payments, settlement, and customer service. A comprehensive assessment is crucial to understand the potential impact of disruption on each critical business service, considering the severity and duration of the disruption. Prioritisation Firms should prioritise critical services based on their impact and potential for recovery, ensuring resources are focused on the most critical functions.

  5. Assessing Tolerance Levels and Impact Tolerances Recovery Time Objective (RTO) Impact Tolerance Firms must define acceptable impact levels for each critical business service, considering the severity and duration of disruption that can be tolerated. The RTO specifies the maximum time a business service can be unavailable before significant adverse consequences occur. Recovery Point Objective (RPO) The RPO defines the maximum acceptable data loss that can be tolerated during a disruption.

  6. Developing Operational Resilience Strategies Risk Assessment 1 Thoroughly assess potential disruptions, considering various scenarios like cyberattacks, natural disasters, and pandemics. Mitigation Controls 2 Develop and implement controls to minimize the impact of disruptions, including redundancy, backup systems, and disaster recovery plans. Recovery Plans 3 Detailed recovery plans are essential to ensure a swift and effective restoration of critical business services.

  7. Mapping Interdependencies and Third-Party Risks Interdependency Analysis Firms need to identify and map interdependencies between their own business services and those of third parties, ensuring a holistic understanding of potential disruptions. Third-Party Risk Assessment Thorough due diligence and ongoing monitoring of third-party service providers are essential to mitigate risks related to their operational resilience. Contractual Agreements Clear contractual agreements with third parties should include clauses related to operational resilience, ensuring they have adequate measures in place.

  8. Implementing Effective Testing and Response Plans Regular Testing Regular testing of operational resilience plans is crucial to ensure their effectiveness and identify any weaknesses. 1 Scenario Planning 2 Plan for various scenarios, including those that could be most disruptive, to ensure the firm is prepared for any potential challenge. Communication and Coordination 3 Establish clear communication channels and ensure effective coordination among teams during disruptions. Post-Incident Review 4 Conduct thorough post-incident reviews to identify lessons learned and improve future responses.

  9. Ongoing Monitoring and Continuous Improvement Monitoring and Reporting 1 Establish a system for ongoing monitoring and reporting of operational resilience metrics, ensuring timely identification of any potential risks or issues. Continuous Improvement Implement a continuous improvement program to regularly review and update operational resilience plans, adapt to changing threats, and ensure compliance with FCA regulations. 2 Employee Training Regular training and awareness programs for employees are essential to ensure everyone understands their role in operational resilience and knows how to respond to disruptions. 3

  10. Next Steps To learn more or to schedule a no-obligation discovery call, please don’t hesitate to get in touch with us at https://complianceconsultant.org, info@complianceconsultant.org or in the UK call on 0800 689 0190. Alternatively, you can schedule a call directly via this link https://bit.ly/CCDiscovr. Also claim our 25% Discount for all of 2025, celebrating our 25th Anniversary.

  11. If you have any burning questions, please contact us

  12. If you have any burning questions, please contact us

More Related