Operational Resilience
Definition
The ability of a firm, and the financial sector as a whole, to prevent, adapt to, respond to, recover from, and learn from operational disruptions. Operational resilience frameworks require firms to identify important business services, set impact tolerances, and test their ability to remain within those tolerances through severe but plausible scenarios.
Regulatory Context
The UK (FCA/PRA) and EU (DORA) have both introduced operational resilience requirements. The UK framework, effective from March 2022 with a March 2025 deadline for full compliance, requires firms to map important business services and demonstrate they can deliver them within impact tolerances.