cbdc:public:cbdc_omg:04_doc:20_comments:brp:q13:sb_01:prt_a:start
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cbdc:public:cbdc_omg:04_doc:20_comments:brp:q13:sb_01:prt_a:start [2022/05/17 16:28] nick [Overview] |
cbdc:public:cbdc_omg:04_doc:20_comments:brp:q13:sb_01:prt_a:start [2022/06/17 19:11] (current) terrance |
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| | [[cbdc:public:cbdc_omg:04_doc:20_comments:brp:q13:sb_01:start| Return to Question 13-1 ]] | <WRAP> | | [[cbdc:public:cbdc_omg:04_doc:20_comments:brp:q13:sb_01:start| Return to Question 13-1 ]] | <WRAP> | ||
| <html><b> | <html><b> | ||
| - | <a href="mailto:[email protected]?Subject=OMG CBDC Response: | + | <a href="mailto:[email protected]?Subject=OMG's CBDC WG Response: |
| 13.1.a) Operational Resiliency | 13.1.a) Operational Resiliency | ||
| ">Provide Feedback</a></b> | ">Provide Feedback</a></b> | ||
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| - //**Take a holistic view of organizational risk.** Consider internal and external factors that impact your organization including business lines, assets, systems, processes, third parties, and people. Building a resilient operation means seeing the interconnection and interdependence of risk throughout the organization. Effective enterprise risk management systems must look across divisions and operations to holistically assess and account for potential threats.// | - //**Take a holistic view of organizational risk.** Consider internal and external factors that impact your organization including business lines, assets, systems, processes, third parties, and people. Building a resilient operation means seeing the interconnection and interdependence of risk throughout the organization. Effective enterprise risk management systems must look across divisions and operations to holistically assess and account for potential threats.// | ||
| - | - //**Design systems that take a comprehensive approach to risk assessment. **This starts with translating risk into a language that everyone at the firm understands. Having a common vernacular permits a more comprehensive analysis and documentation of potential risks throughout the organization. It also allows for a more robust discussion around risk and return as organizations consider how to adapt to changing conditions. Moreover, a shared language permits greater collaboration and cooperation, both critical to building a deeper understanding of the interdependence of risk in the organization and building operational resilience.// | + | - //**Design systems that take a comprehensive approach to risk assessment. **This starts with translating risk into a language that everyone at the firm understands. Having common vernacular permits a more comprehensive analysis and documentation of potential risks throughout the organization. It also allows for a more robust discussion around risk and returns as organizations consider how to adapt to changing conditions. Moreover, a shared language permits greater collaboration and cooperation, both critical to building a deeper understanding of the interdependence of risk in the organization and building operational resilience.// |
| - //**Assess for critical points of failure to inform robust processes, ensure systems capabilities, and cultivate adaptable practices.** Although no market disruption or business interruption is the same, much can be learned from each. Knowing where the key risks lie across the organization and proactively implementing potential workarounds can help organizations better adapt to evolving conditions. The key is having robust systems and flexible processes, as well as cultivating a collaborative and resilient culture.// | - //**Assess for critical points of failure to inform robust processes, ensure systems capabilities, and cultivate adaptable practices.** Although no market disruption or business interruption is the same, much can be learned from each. Knowing where the key risks lie across the organization and proactively implementing potential workarounds can help organizations better adapt to evolving conditions. The key is having robust systems and flexible processes, as well as cultivating a collaborative and resilient culture.// | ||
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| <table fiveways> | <table fiveways> | ||
| - | <caption>5 Ways to Strengthen Operational Resilience in the Financial Services Sector.(( | + | <caption>5 Ways to Strengthen Operational Resilience in the Financial Services Sector. (( |
| Dominick Campagna, | Dominick Campagna, | ||
| __5 Ways to Strengthen Operational Resilience in the Financial Services Sector__, | __5 Ways to Strengthen Operational Resilience in the Financial Services Sector__, | ||
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| ^ Step ^ Description of Activities ^ | ^ Step ^ Description of Activities ^ | ||
| ^ 1. Establish Effective Governance | <WRAP> | ^ 1. Establish Effective Governance | <WRAP> | ||
| - | Effective governance at the board and senior management level is critical to strengthening operational resilience. A strong risk management culture—the foundation of operational resilience—can only happen when there is top-down, organizational commitment. Board and executive responsibilities lay the groundwork and accountability for an operationally resilient mindset and commitment to supporting practices throughout the organization. | + | Effective governance at the board and senior management level are critical to strengthening operational resilience. A strong risk management culture—the foundation of operational resilience—can only happen when there is top-down, organizational commitment. Board and executive responsibilities lay the groundwork and accountability for an operationally resilient mindset and commitment to supporting practices throughout the organization. |
| </WRAP>| | </WRAP>| | ||
| ^2. Identify Critical Assets | <WRAP> | ^2. Identify Critical Assets | <WRAP> | ||
| Disruption, by its nature, is unpredictable. Operational resilience is not about identifying and measuring risks and uncertainty, as the impact of evolving technology and market changes can rarely be predicted. It is instead a framework for protecting the core business. | Disruption, by its nature, is unpredictable. Operational resilience is not about identifying and measuring risks and uncertainty, as the impact of evolving technology and market changes can rarely be predicted. It is instead a framework for protecting the core business. | ||
| - | The identification of critical assets and functions and core business lines should be done with the intention of protecting those assets and operations regardless of the source of disruption. Whether impacted by an unexpected technology failure, pandemic, cybersecurity incident, or any other cause, an operationally resilient firm will have the policies, procedures, and practices in place to guide them through any disruption. | + | The identification of critical assets and functions and core business lines should be done with the intention of protecting those assets and operations regardless of the source of disruption. Whether impacted by an unexpected technology failure, pandemic, cybersecurity incident, or any other cause, and the operationally resilient firm will have the policies, procedures, and practices in place to guide them through any disruption. |
| To do this systematically, the board must determine and approve the risk appetite and risk tolerance for operational disruption, both at the enterprise level and for critical operations and core business lines. These explicit board parameters for the firm’s acceptable level of risk from operational disruption can guide effective decision-making, appropriate investment in resilient systems and controls, and a consistent firm-wide approach to operational risk management. | To do this systematically, the board must determine and approve the risk appetite and risk tolerance for operational disruption, both at the enterprise level and for critical operations and core business lines. These explicit board parameters for the firm’s acceptable level of risk from operational disruption can guide effective decision-making, appropriate investment in resilient systems and controls, and a consistent firm-wide approach to operational risk management. | ||
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| Operational resilience is a dynamic process requiring periodic review, testing, and auditing. As systems and processes evolve, so should your plans. Regularly employing an internal or external audit function to assess the design and effectiveness of operational resilience efforts will help to keep your plans relevant, identify shortcomings due to process or policy changes, and support a firm-wide culture of risk management and operational resilience. | Operational resilience is a dynamic process requiring periodic review, testing, and auditing. As systems and processes evolve, so should your plans. Regularly employing an internal or external audit function to assess the design and effectiveness of operational resilience efforts will help to keep your plans relevant, identify shortcomings due to process or policy changes, and support a firm-wide culture of risk management and operational resilience. | ||
| - | As new infrastructure and technology is adopted, your plans should be revisited and tested. Any digital transformation efforts should include planning for and adoption of policies to address digital risk, such as disruption due to an internal failure, cybersecurity incident, or processing error. | + | As new infrastructure and technology are adopted, your plans should be revisited and tested. Any digital transformation efforts should include planning for and adopting policies to address digital risks, such as disruption due to an internal failure, cybersecurity incident, or processing error. |
| - | Consistent testing of your operational resilience plans, including dependencies and interconnections, will prepare your firm to pivot and adapt quickly through a disruption. | + | Consistent testing of your operational resilience plans, including dependencies and interconnections, will prepare your firm to pivot and adapt quickly to a disruption. |
| </WRAP>| | </WRAP>| | ||
cbdc/public/cbdc_omg/04_doc/20_comments/brp/q13/sb_01/prt_a/start.1652819336.txt.gz · Last modified: 2022/05/17 16:28 by nick
