2021 is shaping up to be a pivotal year for operational resilience with guidance coming from regulators on both sides of the Atlantic. The momentum of regulatory scrutiny has dramatically accelerated over the past several months with regulators now setting out a phased implementation period, with initial requirements due by 22 March 2022. Here in the United States, the SEC Office of Compliance Inspections and Examinations published observations on cybersecurity and resiliency practices for market participants back in January while at the end of March, UK regulators, and the Prudential Regulation Authority (PRA) published final policy on operational resilience and third-party risk management. Finally, the Basel Committee on Banking Supervision (BCBS) recently issued its new Principles for Operational Resilience and revised Principles for the Sound Management of Operational Risk. Financial institutions should follow these developments closely and prepare themselves for significant modifications and upgrades to their current practices over the course of the next 12 months.

Federal Reserve

• Sound Practices to Strengthen Operational Resilience

• Information Technology Guidance

Bank of England

• Financial Sector Continuity

• Building operational resilience: impact tolerances for important business services

Basel Committee on Banking Supervision

• Principles for operational resilience

• Revisions to the principles for the sound management of operational risk

FCA

• Building operational resilience: impact tolerances for important business services