Operational Resilience: Scenario Testing
How should firms be preparing themselves?
Operational Resilience has been highlighted as a key issue by the FCA and the PRA since the discussion and consultation papers in 2018 and 2019. The new rules will be effective from 31 March 2022 for all in-scope firms.
Regulatory priorities and expectations are clear, but plans have been met with several challenges for many institutions.
Organisations need to take practical steps to demonstrate their readiness including:
What is the shape of your firm’s arrangements?
Scenario Testing should test the firm’s ability to remain within impact tolerances in a range of severe but plausible disruption scenarios.
Ten key requirements are outlined, from regular testing to contractual arrangements
Firms will need to plan to make multiple scenario testing exercises ahead of the first Self-Assessment ready for Board sign-off.
A range of testing approaches are being used by firms and the choice is being informed by the degree of maturity of each firm’s operational resilience programme.
Our previous editions discuss the other requirements which can be accessed below:
Operational Resilience Regulations
Will your organisation benefit from support with risk and regulatory compliance challenges?
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