The FCA Operational Resilience Guidelines & What They Mean

Financial service regulators in the United Kingdom (UK) are always looking for new ways to increase operational resilience in their sector. The main financial authorities in the United Kingdom are the Bank of England, the Financial Conduct Authority (FCA), and the Prudential Regulation Authority (PRA). Their responsibilities consist of maintaining and improving operational resilience in the financial services sector of the United Kingdom. A lack of financial resilience, financial security, or financial confidence can ruin an economy very quickly. All three institutions look to avoid storms and be able to weather them when they do arrive. 


Recently, the FCA updated its guidelines on operational resilience. The FCA Operational Resilience guidelines affect around 60,000 organizations within the UK. Most of these organizations consist of investment firms, banks, payment processing vendors, currency exchanges, asset management, and much more. We will take a look at the major changes and how they will affect financial institutions in the UK.   


Guideline Changes

Each regulator has specific duties and supervisions within the world of operational resilience as it pertains to financial institutions. The FCA focus is on factors that help protect consumers and the financial sector safely as technological threats and advancements are made. The discussion of changes being made to the guidelines started way back in 2018 and is now finally being rolled out in the form of new policy statements. The policy statements will instruct firms on what needs to be achieved in terms of information security, not how they should be achieved. Within these policy statements, the FCA is requesting firms affected to conduct threshold audits to determine how ready financial institutions are when a crisis occurs. 


What Does The FCA Want To See?  

The FCA is looking for financial institutions to invest in the ability to maintain servicing their businesses and consumers throughout any economic and societal downturns such as a pandemic or major crash. The FCA would like to see steps on both the micro and macro levels. For financial institutions, this shouldn’t come as a shock due to most major organizations practicing risk management. The FCA is more saying “hey, don’t forget about that.” The FCA is looking for financial institutions to show that they have business continuity plans and resilient business processes in place so they can continue efficient operation. 


On top of this, the FCA is looking at how financial institutions communicate with vendors, consumers, and other businesses. The FCA is worried about the lack of transparency and information available to certain entities which can cause panic and unrest. In the policy statements, the FCA details what financial institutions should be conscious of when doing these assessments of their current risk management practices. Check it out at www.fca.org.uk.


I hope this helps!


Comments

Post a Comment

Popular posts from this blog

The Characteristics of Stainless Steel Wire Mesh Panels

Stainless steel wire mesh panels are made from welding techniques that allow for specific designs that serve a wide range of uses. The stainless steel wire mesh panels are designed and created by using a wire mesh drawing machine, weaving machine, and experienced welder in a clean workshop. Stainless steel wire mesh panels are used in many industries such as construction, production, and chemical industries. Stainless steel wire mesh panels have a robust set of properties such as resistance to heat, water, acid, and alkaline substances. These properties allow for highly functional and durable uses such as filters in the chemical industry and mesh walls for mud in the oil industry. It can be used in a less functional sense for different cages and fencing to protect valuable assets like tools and cattle. Stainless steel wire mesh panels come in a variety of sizes. There are various grades and gauges of stainless steel wire mesh panels such as AISI 302, 304, 304L, 316, 321, 310, and 904L
Read more

How Salon Management Software Can Help Salon Owners

It is not uncommon for salon owners and managers to feel quite overwhelmed with running their business. Between talent retention and making sure your stylist’s seats are filled, a lot can fall through the cracks. As a manager and owner, it is your responsibility to address these issues in the best ways, not short-term patches. A great investment that can really add layers of support to your team is salon management software. Here are some of the key benefits of salon management software .  Scheduling       Salon management software will give you advanced power in terms of scheduling appointments for your stylists. Salon management software will allow your receptionist to easily schedule appointments from a single interface. The same interface you use to manage appointments can be used as a place for reporting and conducting transactions as well. Salon management software will also allow for online bookings to be possible through site integration.   Organized Calendar A paper book or cr
Read more

Different Types of House Paint

There are many different types of paint that can be chosen for a house project. The pros and cons of each can be a lot to traverse through and break down. There are seven different types of house paint that should be used based on the project being carried out. Our South Jersey Painters described the benefits of each and what surfaces can fully utilize their properties. Oil-Based & Water-Based House Paint  Oil-based paints are made with oils that give the paint's finish and other characteristics a different appearance. Oil-based paints are more durable and shiny, but take a long time to dry. Water-based paints are made with waters that provide a unique set of properties as well. Water-based paints provide a more matte appearance and dry rather quickly. The removal of each type of paint is different as well. Oil-based paint is very hard to remove and requires strong chemicals whereas water-based paints do not.  Primer Paint Primer isn’t necessarily a type of paint but is very i
Read more