Impact Tolerances, Scenario Tests & Reporting to the Board - Operational Resilience Challenges

Course outline and objectives

Firms are currently struggling to implement effective Operational Resilience frameworks ahead of the March 2025 deadline for UK compliance with regulatory expectations. Three areas that are proving most difficult are:

• Setting impact tolerances, both at the first point at which disruption to an important business would cause intolerable levels of harm to consumers or risk to market integrity, and also at the point at which further disruption to the important business service would pose a risk to the firm's safety and soundness, and in the case of insurers, policyholder protection;
• Scenarion testing a firm's ability to remain within their impact tolerances for all of their important business services in the event of a range of adverse scenarios including severe but plausible disruption of its operations;
• Reporting Operational Resilience to the senior management and the Board

This interactive workshop will examine ways in which firms can meet the impact tolerance, scenario testing and reporting requirements contained in the Policy Statements issued by the FCA (PS21/3) and the PRA (SS1/21). To achieve this objective the workshop will explore regulatory expectations in these areas, including the insights provided by the various consultation papers produced by the FCA (CP19/32) and the PRA (CP29/19), as well as current practice.

While the course is built around UK regulatory expectations, it will prove beneficial to any non-UK firm tasked with:

• Establishing the firm's risk appetite and tolerance for disruption to its critical operations;
• Using scenarios to test their ability to deliver critical operations through disruption;
• Reporting Operational Resilience

Who will benefit?

This course will benefit everyone directly and indirectly involved in Operational Resilience in the UK and globally, including Operational Resilience personnel, business continuity managers, COOs, CROs, Non-executive directors, auditors and risk officers.

Topics may include, but are not limited to:

• Introduction to Operational Resilience
• Setting Impact Tolerances
• Scenario Testing
• Reporting to the Board