Operational resilience is a set of techniques that allow people, processes and informational systems to adapt to changing patterns. It is the ability to alter operations in the face of changing business conditions.
Three key capabilities underpin resilience: business continuity management, third party management and operational risk. Resilience forms an umbrella across these capabilities and they must individually and collectively be enhanced and continuously integrated to help achieve desired resilience outcomes.
Due to the Covid-19 pandemic, there are a number of specific factors emerging:
People: Covid-19 is driving a consistent set of people issues across the financial services industry. With workforces being unavailable for short or protracted periods of time and people having to adapt to working from home this provides a range of new challenges. Read our latest insights on leading practices in remote working.
Premises: The ongoing nature of the pandemic is making lots of organisations’ premises recovery strategy invalid. With travel restrictions being placed in many countries people cannot get to primary operations or recovery sites which is testing home working capability.
Third Parties: The rapid spread of the Covid-19 is impacting economic growth and market volatility is increasing, thus impacting the industry with adverse impact on the capital position of financial institutions around the world. From a Third Party Risk Management (TPRM) perspective, it remains key to understand the risk profile of the third party inventory, and continue to risk assess critical third parties to understand their ability to keep providing continuity of services. Read our latest insights on Third Party Risk Management and the impact of Covid-19.
Processes: During the crisis, clients need to focus on their core offerings and adapt to the changing needs of their customers and the unfolding situation.
Technology: Maintaining the technology bandwidth and infrastructure to deal with the ongoing and escalating demands of the pandemic response and client requirements.
EY can provide support across a range of capabilities:
Download the document below to explore these topics in greater detail. You can also review our latest insights and thinking to support you in leading through these volatile times; don’t hesitate to reach out if you have any questions.