Firstly, what is operational resilience?
Operational resilience is the ability of firms and the financial sector as a whole to prevent, adapt, respond to, recover and learn from operational disruptions. Operational disruptions and the unavailability of important business services have the potential to cause wide-reaching harm to consumers and market integrity, threaten the viability of firms and cause instability in the financial system.
UK Regulatory Background — The Financial Conduct Authority (FCA, the Bank of England and Prudential Regulation Authority (PRA) published PS21/3: Building operational resilience, setting out final rules and guidance on new requirements to strengthen operational resilience in the financial services sector. The new rules came into force on 31 March 2022.
Europe Regulatory Background — The European Commission published its legislative proposal for a Digital Operational Resilience Act (DORA) for the financial sector in September 2020. The proposed DORA builds on existing ICT risk management requirements already developed by other EU institutions and ties together several recent EU initiatives into one regulation.
