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Important business services

In previous editions of this series we provided an overview of Operational Resilience and Outsourcing and Third Party Risk Management requirements. 

This week our Senior Director and Regulatory Compliance Lead, Lindsey Domingo addresses further questions.  The focus of this chapter will provide clarification and guidance on how firms impacted by the Operational Resilience obligations can identify their important business services. We examine possible approaches.

 

Important business services are those services a firm provides which, if disrupted, could cause intolerable harm.  They form one of the cornerstones of Operational Resilience.

This is a key exercise that has to be performed by institutions regulated by the PRA and/or FCA. We consider five key types of firms in further detail.

Operational Resilience is not just a regulatory exercise, but instead a better way to run a firm, help improve controls and deliver better outcomes for customers and the market.

Identifying important business services has generally been led by common sense and business knowledge rather than a pre-defined methodology.  We examine possible approaches.

Firms have less than one year.  There is a lot to do.  It is crucial Boards make the necessary investments to ensure the minimum requirements are met by 31 March 2022.