Elements of Corporate Resilience Organisational Operational Financial

Financial and Operational Resilience Key Elements of Bank of England Supervisory Toolkit One of the Bank of England’s objectives is to secure Financial Stability. This is delivered primarily through two pillars of supervision covering (i) financial and (ii) operational resilience. With supervisory tools for financial resilience largely in place, UK regulators are enhancing supervision of the operational robustness of firms Financial Stability Financial Resilience Operational Resilience Operational Risk Management Ongoing preventative steps to minimise the likelihood and impact arising from operational risks, including by identification, measurement, monitoring and controlling significant operating risks Normal Operation Capital, liquidity and funding management e.g., ICAAP, ILAA Risk management and controls over non-financial risks Financial disruption may have operational impact Disruptive Event Management Focusing on providing continuity of business services and firm’s ability to respond to and recover from operational disruptions which have the potential to cause harm to consumers, market participants, markets and the firm’s viability New area of regulatory focus Disruptive Event Management Increasing severity of business disruption Recovery Plan Operational disruption may have financial impact Operational Continuity in Resolution Ensuring operational continuity of firms’ critical services to facilitate recovery actions, orderly resolution and post-resolution restructuring Operational Continuity in Resolution (OCIR) Resolution Plan/SWD MREL Resolution

Organisational Resilience Culture Core Values Tone from the Top Organisational Embeddedness Team Functional Leadership Path to Development Succession Planning / Mobility Employee Health & Wellness Physical Mental Financial Spiritual Life Events