Recognizing the importance of operational resilience, ECB and PRA have committed to working together with each other and the U.S. FED to ensure the implementation of well-coordinated supervisory approaches on operational resilience. Both ECB and PRA have recently published statements to this effect. Statements from both regulators note that banks have made progress in enhancing operational resilience in recent years, including through their response to the challenges posed by the COVID-19 pandemic. Both ECB and PRA are encouraged by the recognition of shared interest between supervisors and the industry in strengthening operational resilience and the actions firms have taken to date. However, more work remains to be done to ensure banks are resilient to potential operational disruptions from all hazards, including severe but plausible cybersecurity incidents, which could pose risks to the wider financial system.
Keywords: Europe, Americas, EU, UK, US, Banking, Operational Resilience, Operational Risk, Cyber Risk, COVID-19, Supervisory Cooperation, PRA, ECB, FED
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