Recent updates from the Financial Stability Board (FSB) and Basel Committee on Banking Supervision (BCBS) underscore the growing importance of operational resilience in financial institutions worldwide. In July 2024, the BCBS amended its prudential standards for crypto-assets, highlighting the need for robust risk management against emerging digital threats. Simultaneously, the FSB recommended enhancements to cross-border payment systems to address vulnerabilities.
These regulatory changes show how complex and interconnected global financial systems are, making it essential to fully understand and comply with both regional and international standards. In this guide, you’ll explore key operational resilience frameworks across Europe, North America, and the Asia-Pacific region. Read on for detailed insights into the latest operational resilience compliance requirements and strategies for the following regions:
What is operational resilience?
Operational resilience compliance frameworks are designed to prepare your organization for the unexpected. For financial institutions and other critical service entities, it means having the ability to handle disruptions — whether it’s a cyberattack, a natural disaster, or a tech failure — and bounce back quickly. It ensures that critical services continue without interruption, maintaining stability and trust.
Why operational resilience matters to financial institutions
Operational resilience isn’t just a regulatory requirement — it’s a strategic necessity that prepares financial institutions to face challenges head-on and emerge stronger, ready to thrive in any environment through:
- Operational Continuity and Trust: Operational resilience minimizes downtime during disruptions, ensuring customers can still access essential services. By maintaining continuous operations, your institution builds trust and confidence among customers and partners, demonstrating reliability and preparedness.
- Compliance and Risk Management: Adhering to regulatory standards like those set by OSFI and DORA not only ensures compliance but also supports proactive risk management. Operational resilience frameworks allow your institution to identify and address risks before they escalate, helping to safeguard stakeholders and avoid penalties.
- Competitive Advantage: Institutions that can quickly recover from disruptions gain a competitive edge, standing out in the market and ensuring continued growth, even in challenging times.
Key operational resilience regulations in Europe and the United Kingdom
The EU and UK have established critical frameworks to ensure operational resilience in financial institutions. These operational resilience frameworks are designed to protect the financial system and ensure that institutions offering financial services can withstand and recover from disruptions. Read on to explore these key regulations and understand how they might impact your global compliance efforts.
Digital Operational Resilience Act (DORA) (EU)
Who Needs to Comply: Financial institutions and critical service providers within the financial sector operating in the European Union.
The Digital Operational Resilience Act (DORA) is a comprehensive EU regulation designed exclusively for financial institutions and their critical service providers. Its primary goal is to ensure that the financial sector’s information and communications technology (ICT) systems are robust and resilient against disruptions. DORA mandates the implementation of risk management frameworks, regular testing of digital operational resilience, and prompt reporting of significant ICT-related incidents to competent authorities.
Compliance with the DORA framework involves continuous monitoring and thorough third-party risk management. Financial institutions and their critical service providers must align their IT security protocols and cyber incident management processes to meet DORA standards.
Read our full guide: Effective DORA Implementation: A Comprehensive Guide for Compliance
NIS2 Directive (EU)
Who Needs to Comply: Organizations operating in critical sectors such as energy, transport, healthcare, finance, or other essential and digital services within the EU.
The NIS2 Directive enhances and expands the scope of the original Network and Information Security (NIS) directive, introducing stricter security requirements for network and information systems in these sectors. Organizations must conduct regular risk assessments, promptly report incidents, and implement thorough security measures to protect critical infrastructure.
Compliance with NIS2 involves developing comprehensive incident response plans and ensuring business continuity through meticulous planning and testing. While NIS2 broadly focuses on enhancing cybersecurity across various essential and digital service sectors, DORA specifically targets the operational resilience of ICT systems within the financial sector.
Financial Conduct Authority (FCA) Policy Statement PS21/3 (United Kingdom)
Who Needs to Comply: Financial institutions operating in the UK, including banks, building societies, credit unions, insurers, and investment firms.
The UK Financial Conduct Authority (FCA) drives overall operational resilience through its Operational Resilience Framework, detailed in the FCA’s Policy Statement PS21/3. This framework emphasizes the identification of critical business services and the setting of appropriate impact tolerances. Financial institutions must conduct regular testing of their operational resilience and demonstrate their capability to manage and recover from disruptions.
Compliance involves conducting thorough risk assessments to identify potential threats. Institutions must also perform consistent resilience testing to ensure systems can withstand disruptions. Additionally, they need to develop effective communication plans to manage and mitigate impacts on critical business services.
BaFin’s MaRisk and BAIT Regulations (Germany)
Who Needs to Comply: Primarily financial institutions operating in Germany, including banks, insurance companies, and other financial service providers. Certain aspects may also apply to entities critical to the financial infrastructure.
BaFin drives overall operational resilience through its regulatory framework, notably the Minimum Requirements for Risk Management (MaRisk) and the Supervisory Requirements for IT in Financial Institutions (BAIT). These frameworks focus on maintaining critical operations during severe disruptions. Financial institutions must implement comprehensive risk management frameworks, conduct regular tests of their operational resilience plans, and manage third-party risks.
Compliance involves continuous monitoring of operational risks. Institutions must integrate resilience into their organizational culture and develop regularly tested continuity plans to ensure they can manage and recover from disruptions.
ACPR’s Operational Resilience Framework (France)
Who Needs to Comply: Financial institutions operating in France, including banks, insurance companies, and investment firms.
France’s Autorité de Contrôle Prudentiel et de Résolution (ACPR) framework mandates that financial institutions develop and maintain robust continuity plans. Key compliance requirements include conducting thorough risk assessments to identify potential operational threats. Institutions must also regularly test resilience plans to ensure effective response and recovery. Additionally, they must promptly report significant incidents to the ACPR.
Ensuring adequate resources and capabilities to manage operational disruptions is crucial for effective compliance. Institutions must integrate operational resilience into their organizational culture. They should also continuously improve their risk management practices to align with ACPR standards.
Tips for compliance European operational resilience regulations
To comply with European operational resilience regulations like DORA, NIS2, FCA’s PS21/3, MaRisk, BAIT, and ACPR, your institution should:
- Regularly conduct risk assessments and develop comprehensive resilience plans.
- Invest in advanced monitoring and reporting tools.
- Conduct frequent testing and drills.
- Implement robust cyber incident management protocols.
- Ensure third-party providers meet the same resilience standards.
- Foster a resilient culture through continuous training and proactive risk management.
These steps will integrate resilience into the organizational framework, ensuring readiness and compliance with stringent European standards.
Key operational resilience regulations in North America
North America’s regulatory framework for operational resilience includes guidelines and requirements from both the United States, Canada, and Mexico. These regulations aim to ensure that organizations in critical sectors, including financial services, can effectively manage and recover from operational disruptions.
OSFI’s E-21 Guideline (Canada)
Who Needs to Comply: Primarily financial institutions operating in Canada, including banks, insurance companies, and investment firms.
Canada’s Office of the Superintendent of Financial Institutions (OSFI) E-21 Guideline outlines operational resilience requirements for federally regulated financial institutions. Financial institutions must implement comprehensive risk management frameworks. They should conduct regular tests of resilience plans and continuously monitor operational risks. Effective implementation requires integrating resilience into the organizational culture. Institutions must ensure all levels of the organization are prepared for potential disruptions. Additionally, they should develop detailed business continuity plans and regularly review and update these plans.
Read our full guide on OSFI’s Guideline E-21
U.S. regulatory frameworks for operational resilience
Who Needs to Comply: Financial institutions operating in the United States, including banks, credit unions, and savings institutions.
The U.S. approach to operational resilience involves multiple regulatory bodies, each with specific focus areas:
FFIEC Guidelines
The Federal Financial Institutions Examination Council (FFIEC) emphasizes:
- Identifying critical business functions.
- Developing strategies for operational continuity during disruptions.
- Conducting risk assessments and regular testing.
- Implementing stringent risk incident management plans.
- Maintaining effective communication channels.
- Providing regular staff training on resilience practices.
OCC Guidelines
The Office of the Comptroller of the Currency (OCC) focuses on:
- Implementing comprehensive risk management frameworks.
- Embedding resilience into organizational culture.
- Regular testing of resilience plans.
- Continuous monitoring of operational risks.
- Maintaining critical operations during disruptions.
FDIC and Federal Reserve Guidelines
These regulators complement OCC and FFIEC guidelines, emphasizing:
- Depositor protection and financial system stability.
- Robust risk management frameworks.
- Stress testing and scenario analysis.
- Effective recovery strategies.
Compliance Tip: Align your resilience strategy with all relevant U.S. federal guidelines to ensure comprehensive coverage and avoid regulatory gaps.
Operational resilience regulations in Mexico
Who Needs to Comply: Financial institutions operating in Mexico, including banks, insurance companies, and securities firms.
Mexico’s approach to operational resilience is governed by two key bodies:
- Comisión Nacional Bancaria y de Valores (CNBV):
- Focuses on maintaining critical operations during disruptions.
- Requires regular risk assessments and continuity plan testing.
- Emphasizes strong internal controls.
- Banco de México (Banxico):
- Sets standards for cybersecurity and financial market infrastructure.
- Focuses on stability in the face of technological and operational risks.
Compliance Tip: Financial institutions with operations in Mexico should align with both CNBV and Banxico guidelines to maintain resilience and protect stakeholders’ interests.
Strategies for North American operational resilience compliance
To effectively comply with North American regulations, your organization should:
- Develop integrated risk management frameworks that address all relevant guidelines.
- Implement regular, cross-functional resilience testing and scenario analysis.
- Utilize advanced monitoring systems and cyber incident management software.
- Provide continuous staff training on resilience practices and regulatory requirements.
- Establish robust communication channels for stakeholders and regulators.
- Regularly review and update resilience plans to address evolving threats and regulatory changes.
- Foster a culture of resilience throughout the organization.
By adopting these strategies, financial institutions can enhance their operational resilience, ensure regulatory compliance, and better protect their operations and stakeholders across North America.
Key operational resilience regulations in Asia-Pacific (APAC)
The APAC region features a diverse range of regulations, with countries like Australia and Singapore leading the way in establishing comprehensive operational resilience guidelines.
CPS 230 (Australia)
Who Needs to Comply: APRA-regulated entities in Australia, including banks, insurance companies, and superannuation funds.
Australian Prudential Regulation Authority (APRA) is the regulatory body responsible for overseeing banks, credit unions, insurance companies, superannuation funds, and other financial institutions in Australia. APRA’s primary role is to ensure the financial stability and soundness of these institutions to protect the interests of depositors, policyholders, and fund members.
Set to come into effect on July 1, 2025, CPS 230 requires APRA-regulated entities to implement comprehensive risk management frameworks, conduct regular resilience tests, and continuously monitor operational risks. Effective compliance necessitates integrating resilience into the organizational culture and ensuring that all levels of the organization are prepared for potential disruptions.
Essential 8 (Australia)
Who Needs to Comply: Organizations across various sectors in Australia, particularly in financial services, critical infrastructure, and government.
The Essential 8 is a set of cybersecurity strategies recommended by the Australian Cyber Security Centre (ACSC). While these strategies are not legally mandated, they are widely regarded as best practices, especially for organizations in critical sectors. The Essential 8 focuses on strengthening cybersecurity resilience by implementing robust security measures, conducting regular resilience tests, and ensuring organizational preparedness for potential cyber threats.
MAS Guidelines: Notice 644 and Notice 644A (Singapore)
Who Needs to Comply: Financial institutions operating in Singapore, including banks, insurers, and investment firms.
The Monetary Authority of Singapore (MAS) is the central regulatory authority responsible for overseeing financial institutions in Singapore. MAS’s guidelines on operational resilience, including MAS Notice 644 and MAS Notice 644A, emphasize the identification of critical business functions, risk management, and business continuity planning. Compliance requires conducting regular risk assessments, resilience tests, and ensuring robust risk incident management processes.
HKMA Guidelines (Hong Kong)
Who Needs to Comply: Financial institutions operating in Hong Kong, including banks and insurers.
The Hong Kong Monetary Authority (HKMA) is responsible for the regulation and supervision of banks and other financial institutions in Hong Kong. The HKMA’s Supervisory Policy Manual (SPM), including modules like TM-G-2 and TM-G-1, provides detailed guidelines on operational resilience. These guidelines require financial institutions to develop comprehensive risk management frameworks, conduct regular resilience tests, and ensure that all levels of the organization are prepared to manage and recover from disruptions.
JFSA Guidelines (Japan)
Who Needs to Comply: Financial institutions operating in Japan, including banks, insurance companies, and securities firms.
Japan’s Financial Services Agency (JFSA) oversees the stability and soundness of Japan’s financial institutions. The JFSA guidelines, including those on Business Continuity Management (BCM) and cybersecurity, mandate that financial institutions develop robust continuity plans, conduct regular risk assessments, and test resilience strategies to ensure they can effectively manage and recover from operational disruptions.
Compliance Tips for Asia-Pacific
To comply with APAC regulations, financial institutions should:
- Adopt comprehensive risk management frameworks that align with regional requirements.
- Conduct regular resilience testing to ensure preparedness for disruptions.
- Maintain robust communication channels with stakeholders and regulators.
- Utilize advanced monitoring systems and risk incident management software to detect and respond to risks.
- Provide continuous staff training on resilience practices and regulatory requirements.
These strategies will help organizations maintain operational resilience and meet the stringent compliance demands across the APAC region.
Ensuring global compliance with software solutions
Compliance with global operational resilience frameworks requires a proactive approach. Implementing adaptable risk management frameworks, regularly testing your resilience, and maintaining open communication with stakeholders and regulators are key steps. By staying up-to-date with regulatory changes and using advanced tools, you can protect your operations.
Stay compliant with regional and global operational resilience regulations with Resolver. Explore our solutions for Regulatory Compliance and IT Compliance to learn more about how Resolver can help you comply with changing regulations with efficiency.
