Mastering resilience regulations in financial services

Prolonged uncertainty has seen operational resilience take centre stage in today's financial services industry.

Customer trust and compliance are currencies that have consistently held a high value. However, now that regulators have moved to further protect markets - and customers - by creating a new set of resilience rules, they matter more than ever.

Since the onset of Covid-19, regulators as widespread as the Federal Reserve, the European Central Bank, the Basel Committee on Banking Supervision, and the Prudential Regulation Authority (PRA) have all issued consultations. The PRA's final policy is due in the first quarter of this year.

But how will this change in the regulatory landscape impact the modern financial institution?

A foundation for change

Primarily, it will test the modern financial institution's ability to adapt. Success will increasingly be defined by flexibility and vision, to mould to the here and now while looking ahead to prepare for what's next. However, carrying out change isn't always simple. Inflexible IT infrastructure can often get in the way, slowing responses and leading to disruptive incidents.

A recent Financial Conduct Authority (FCA) review found that legacy technology remains prevalent in 90 per cent of firms. Products of legacy IT, such as disjointed processes, data silos and reduced third-party visibility all lead to higher volumes of failed and emergency changes.

Additionally, most firms still operate manual processes, creating a lack of consistency and repeatability throughout the change lifecycle. In other words, when no two transformation projects follow the same design the IT ecosystem ends up full of bespoke, disconnected services.

If financial services are to gain true resilience, it is time to transform legacy infrastructure while centralising visibility of digital workflows, third-party suppliers, facilities, people, IT assets and enterprise service management. With these capabilities firms can measure and improve their resilience, helping to reduce customer harm and optimise the customer experience.

Laying the road to resilience

For many, the journey ahead may appear long and complex. Digital transformation can be a tricky business, particularly under today's pressures. However, with regulation impending the need is urgent. To help firms prepare in a way that turns resilience into their competitive advantage, we have put together a half-day virtual programme.

On 15 April we will be joined by a selection of industry leaders and esteemed organisations including Hannah Gurga, Chief of Staff, UK Finance, who will lead a conversation with Nick Strange from the Bank of England on how to better understand present regulatory expectations. There is no better way to learn what it takes to build a resilience strategy that expands market share, builds trust and embraces innovation.

There is no one-size-fits-all approach to resilience, but for a higher change success rate the FCA found that transforming legacy systems, stronger governance, day-to-day risk management and increased automation are all vital.

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Risk and Resilience Academy - 25 May

This comprehensive training academy explores the principles involved in managing risk and enabling a resilient culture. The academy will help delegates to develop frameworks, practices, and behaviours that instil operational resilience disciplines across their firm.

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