Central Bank of Ireland Feedback Statement – Consultation Paper 140: Cross-Industry Guidance on Operational Resilience. January 2022
On 1st of December 2021, the Central Bank published their feedback statement. In the original guidance document, it stated “The objective of this Guidance is to communicate to industry how to prepare for, respond to, recover and learn from an operational disruption that affects the delivery of critical or important business services. The guidance looks at the concept of Operational Resilience and the Value of Operational Resilience. It focuses on three pillars:
- Identify and prepare;
- Respond and adapt;
- Recover and learn.
Extract below from the paper with a diagram of the three pillars of Operational Resilience and the guidelines within each pillar.
The three pillar approach supports “a holistic approach to the management of operational resilience and related risks and create a feedback loop that fosters the perpetual embedding of lessons learned into a firm’s preparation for operational disruptions.
Following on from the consultation process while the guidance is largely unchanged extra context has been added as follows:
- Guideline 2 to more accurately reflect the need for alignment between the Operational Risk and Operational Resilience Frameworks rather than incorporating frameworks into each other;
- Guideline 4 to confirm that that the number of critical or important business services should be proportionate to a firm’s business model and not solely determined by the size of the firm;
- Guideline 5 & 6 to clarify that impact tolerance metrics can be both qualitative and quantitative and that firms may leverage appropriate existing approved processes as part of the development of impact tolerances; and
- Guideline 8 to further align the expectations of this Guidance with those of the Cross Industry Guidance on Outsourcing.
For the consultation paper and feedback document see the links below: