The Basel Committee on Banking Supervision today issued a pair of guidance documents to help banks manage operational resilience and risk. “Principles for Operational Resilience” is intended to assist banks to better withstand, adapt to and recover from severe adverse events. The resilience guidance builds on the committee’s “Principles for the Sound Management of Operational Risk,” which has been revised and also was re-released today. It focuses on change management and information and communication technologies.
“Given the critical role played by banks in the global financial system, increasing banks’ resilience to absorb shocks from operational risks, such as those arising from pandemics, cyber incidents, technology failures or natural disasters, will provide additional safeguards to the financial system as a whole,” according to BCBS. “In recent years, the growth of technology-related threats has increased the importance of banks’ operational resilience. The COVID-19 pandemic has made the need to address these threats even more pressing.”