OPERATIONAL RESILIENCE AND COMPLIANCE IN THE FINANCIAL SERVICES SECTOR
R&C: Could you provide an overview of the operational resilience risks facing the financial services (FS) sector, and why it is so important for FS firms to effectively, proactively manage these risks?
Jacco: Operational resilience must be a priority as firms face today’s threat landscape and try to manage business growth and innovation priorities. One important aspect of operational resilience that is top-of-mind for regulators is cyber resilience, especially as cyber criminals continue to get smarter and target financial services firms. Specifically, rising ransomware attacks are pushing firm focus on cyber recovery techniques. In addition to cyber risk, there is heightened risk due to evolving political unrest globally, market dislocations and economic uncertainty. As firms continue to expand product offerings and digital capabilities, they must grow and adapt responsibly. Furthermore, with evolving business models, firms are leveraging third parties to deliver critical business services and must ensure they can maintain resiliency. Any significant operational disruption could have a lasting impact on firm reputation and market stability. Regulators will continue to push the agenda on operational resilience and firms must keep pace with evolving expectations.
Apr-Jun 2022 Issue
KPMG