BCBS Principles for Operational Resilience (2021)
Principle 1 Governance (paragraphs 16 to 19) – BCBS Principles for Operational Resilience (2021)

BCBS Principles for Operational Resilience (2021) P1-16: Board approval of the operational resilience approach and the tolerance for disruption, tested against severe but plausible scenarios, with policies for capability shortfalls

What does P1-16 require?

Principle 1 expects a bank to run its operational resilience approach through the governance structure it already has, so that the bank can respond, adapt, recover and learn when disruptive events hit critical operations. The board signs off the approach after weighing the bank's risk appetite and the level of disruption it will tolerate for each critical operation. Setting that tolerance means comparing what the bank can actually sustain against a wide set of severe but plausible scenarios, and policy must say what happens when capability falls short of the tolerance the board has set.

Maintained by Gerard Blokdyk

Other controls in Principle 1 Governance (paragraphs 16 to 19) – BCBS Principles for Operational Resilience (2021)

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