The Basel Committee on Banking Supervision has published its Principles for Operational Resilience, together with revised Principles for the Sound Management of Operational Risk, setting international expectations for how banks withstand and recover from severe disruptions.
Key points
- Covers governance, operational risk management and business continuity planning and testing.
- Expects banks to map the internal and external interconnections behind their critical operations.
- Requires effective management of third-party dependencies, including outsourcing.
- Addresses incident management and resilient ICT, including cyber security.
- Builds on the approach already taken by UK regulators to operational resilience.
National banking regulators implement the principles, so they shape requirements on banks worldwide. Suppliers of critical services to banks should expect closer scrutiny of their resilience, incident response and ability to support impact tolerances.
Source: Principles for Operational Resilience (Basel Committee, BIS)
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