Embedding your Operational Resilience Framework

Following on from our last post on UK  Operational Resilience Regulations, here are 10 actions that UK financial institutions can take to embed the operational resilience framework within their firms:

1. Leadership Commitment: Gain visible support and commitment from senior leaders, emphasising the importance of operational resilience and its integration into the firm’s overall strategy.
2. Clear Policies and Procedures: Develop comprehensive policies and procedures that outline the expectations and requirements for operational resilience. Ensure that these documents are easily accessible and regularly communicated to all relevant staff.
3. Training and Awareness Programs: Provide training and awareness programs to educate employees about the operational resilience framework, its objectives, and their roles and responsibilities in implementing it. Make these programs mandatory for relevant staff members.
4. Dedicated Operational Resilience Teams: Establish dedicated teams responsible for overseeing and driving operational resilience initiatives within the organisation. These teams should have the necessary expertise and authority to implement the framework effectively.
5. Integration with Risk Management: Integrate the operational resilience framework with existing risk management processes and frameworks. This alignment will enable a holistic view of risks and facilitate coordinated actions in mitigating operational disruptions.
6. Key Performance Indicators (KPIs): Develop and implement KPIs that track the progress and effectiveness of operational resilience initiatives. Regularly review and report on these KPIs to senior management and the board.
7. Cross-Functional Collaboration: Foster collaboration and communication between different departments and functions within the firm. Break down silos and encourage knowledge sharing to ensure a consistent understanding and implementation of the operational resilience framework.
8. Testing and Exercise Programs: Establish regular testing and exercise programs to validate the effectiveness of the operational resilience framework. Conduct realistic simulations of disruptive events and evaluate the firm’s response and recovery capabilities.
9. External Engagement: Engage with industry forums, working groups, and regulatory bodies to stay informed about evolving best practices and emerging risks. Participate in relevant discussions and contribute to the development of industry standards and guidance.
10. Continuous Improvement Mechanisms: Establish mechanisms to capture lessons learned from incidents, near-misses, and exercises. Use this feedback to continuously improve the operational resilience framework, updating policies, procedures, and training materials as needed.

By implementing these actions, financial institutions can effectively embed the operational resilience framework, ensuring its integration into their culture, governance, and day-to-day operations.

Author: Palvinder Gill our UK regulatory operational resilience expert