Why do we need the Authorities’ Response Framework?
The finance sector is made up of many different types of firms (such as banks, building societies, insurers) and financial market infrastructure providers (FMIs). They rely on each other in order to provide important business services to the UK. Usually, links between these firms/FMIs work well, but sometimes things can go wrong.
When things go wrong, important business services may be disrupted. Responsibility for responding to disruption sits with firms/FMIs themselves. They will have their own methods and plans in order to react and ensure the continuity of those services.
But, because firms/FMIs rely upon one another, disruption in one part of the sector can spread to another part. It can also spread beyond the finance sector to other sectors in the UK. The Authorities have a crucial role in reducing the effects of this and ensuring stable functioning of the system. This is managed through the Authorities’ Response Framework.