Operational ResilienceOn March 29, 2021, the FCA (Financial Conduct Authority), the PRA (Prudential Regulation Authority) and the Bank of England published their final rules and guidance on operational resilience.
This means firms within the UK financial sector, such as banks, building societies, designated investment firms, insurance firms, e-money and payment services firms will be expected to take steps to ensure their operational resilience. Because the FCA believes operational resilience is non-negotiable for firms operating in financial markets, new rules will apply as soon as 31 March 2022.
How can BusinessOptix help?
Our end-to-end process transformation platform offers standout capabilities to support compliance with the new FCA rules, including:
Process mining and process modeling to rapidly document current operations in case your operating procedure documentation has not kept pace with changes on the shop floor. Alternatively, it may be useful to create new views of current models to support the resilience analysis. This baseline documentation is stored in the platform and provides a dynamic copy of your real-life operations, which we call a digital twin.
Scenario modeling to deliver the FCA’s testing requirement by using process simulation tools. These can illustrate the impact of disruptions on various services and inform your lessons learned analysis. Improvements can be tested prior to roll-out to prove they will have the desired impact—particularly vital when the business service is delivered partly in-house, and part outsourced. It’s also a more cost-effective way to achieve compliance than running physical tests and disruption role plays.
Integration with your risk and controls register. So that your risk governance is in step with resilience analysis and key controls are maintained when those important business services are operating within and recovering from a disruption event.
Support for audits to prove compliance. Because all the information you need is in one place, it is far easier to perform these reviews. And because it reflects the reality of your operations (via digital twin) it is far more accurate and up-to-date than any alternative methods. To recap, we store:
- the documentation for your important business services, and the links to the source
- the results of scenario testing
- any changes that have been made to important business services.
- the processes for reviews and updates
In addition, since Brexit, the UK is under no obligation to comply with DORA, the equivalent EU legislation for operational resilience. However, many firms operate both within the UK and the EU and will therefore need to satisfy both regulatory regimes. So, it makes sense to solve your operational resilience documentation in one place to satisfy multiple regulatory regimes.
BusinessOptix not only provides superior capabilities to do this. Digital twin technology can also be the foundation for digital transformation efforts to drive ongoing success for your organization and value for customers now and into the future.
Want to find out more? Read our fact sheet.