Where do you stand vis a vis Operational Resilience

In light of the evolving regulatory landscape concerning operational resilience in the financial services sector, it is crucial for institutions like yours to stay ahead in compliance and resilience planning. Below, we outline the current state of compliance within UK and EU frameworks and how T3 Consultants can support your institution in bridging any gaps and ensuring full compliance.

1. Current Compliance Status:

Identification of Important Business Services (IBS): 85% of firms have identified their IBS and mapped dependencies.

Impact Tolerances: About 75% of firms have established impact tolerances; however, continuous adjustment is observed as risk landscapes evolve.

Scenario Testing: Nearly 60% of firms regularly conduct scenario testing, yet the depth and breadth of these tests often require enhancement to cover more severe scenarios.

Incident Management: While 80% of firms have robust incident management plans, only 50% review and update these plans annually.

Governance and Self-Assessment: About 70% of firms have integrated operational resilience into their governance frameworks, though integration into broader business strategy is less common at around 40%.

 

2. Gap Analysis:

2.1 Testing and Simulation Depth: Many organizations need to expand their testing scenarios to cover more extreme but plausible scenarios.

2.2 Integration of Resilience Measures: Operational resilience often remains siloed rather than integrated across business functions.

 

3. Current Compliance Status:

ICT Risk Management: Most firms (around 65%) have updated their ICT risk management frameworks recently, yet ongoing updates remain essential.

Third-Party Risk Management: Approximately 70% of firms actively manage third-party risks, but dynamic monitoring remains a challenge.

Operational Resilience Testing: 60% have established testing frameworks, but only 40% conduct advanced testing at recommended frequencies.

Information Sharing: Only 50% of firms utilize established mechanisms effectively to enhance collective defense.

Reporting Requirements: High readiness (around 75%) for meeting reporting requirements, though the detail and accuracy of incident reports can be improved.

4. Gap Analysis:

4.1 Comprehensive ICT Frameworks: Continuous updating of ICT frameworks to address newly identified risks and vulnerabilities.

4.2 Enhanced Third-Party Monitoring: Developing more stringent monitoring and compliance verification processes for third-party providers.

 

5. How T3 Consultants Can Assist:

• At T3 Consultants, we specialize in ensuring that financial institutions not only meet but exceed regulatory requirements for operational resilience. Our services include:

• Tailored Gap Analysis: We provide detailed assessments to identify specific areas of improvement tailored to your organization’s unique operational landscape.

• Customized Testing Programs: Development of bespoke testing programs that go beyond standard requirements to cover a broader range of disruption scenarios.

• Enhanced Incident Management Solutions: We help refine your incident response strategies and train your teams to ensure effective management and communication during disruptions.

• Regulatory Alignment Reviews: Ensuring that your resilience practices are fully aligned with both UK and EU regulatory expectations.

• Third-Party Risk Management: Assistance in establishing robust oversight and compliance checks for third-party service providers.