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The importance of operational resilience, third-party risk management, and cybersecurity in financial institutions cannot be overstated, as these elements are crucial for maintaining trust, stability, and compliance in an increasingly complex environment. High-profile incidents like ION, ICBC, and Snowflake underscore the urgency for firms to address emerging cyber threats, which can significantly impact their ability to deliver critical services. Ensuring robust defences and evaluating supply chains and service channels are essential for banks to adapt swiftly to new cyber threats and maintain operational continuity.
Firms must regularly refresh their severe but plausible scenarios and conduct horizon scanning to stay aware of emerging risks, ensuring they can detect, respond to, and recover from operational disruptions.
Ahead of the 31 March 2025 deadline for the operational resilience policy (PS21/3), firms need to review and approve their plans annually or after significant changes, ensuring they remain within impact tolerances for their important business services through regular scenario testing.
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Managing Director, Directors and Heads of:
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