The ability of a bank to recover from an operational disruption — such as a cybersecurity incident or a natural disaster — has become even more important with the growing trend toward technology-led business transformation.
Banks have made progress in enhancing operational resilience in recent years including through their response to the challenges posed by the Covid-19 pandemic. In addition, the Prudential Regulation Authority (PRA) is encouraged by recognition of the shared interest between supervisors and the industry in strengthening operational resilience, and the actions firms have taken to date. However, more work remains to be done to ensure banks are resilient to potential operational disruptions from all hazards, including severe but plausible cybersecurity incidents, which could pose risks to the wider financial system.
The PRA recognizes the global and interconnected nature of banks and the importance of supervisory coordination and is committed to working closely with the European Central Bank and the Federal Reserve to ensure that supervisory approaches on operational resilience are well coordinated.