OR-P2-S4: Operational Resilience Scenario Testing

Operational Resilience Course Overview Scenario Testing

Scenario Testing Unveiled

In this second last stage of the "Implement" phase of the operational resilience planning methodology, we delve into the critical process of scenario testing.

This pivotal juncture comes after establishing our Critical Business Services, process mapping, and the consolidated map. The focus now shifts to assessing tolerance levels. Notably, scenario testing echoes the familiar realm of BCM and crisis management testing, with one distinct alteration: the inclusion of customers and third parties.

Previously, our testing encompassed critical business functions in controlled settings. However, the current scenario testing requires a broader scope involving external entities.

With scrutiny from regulators, an essential question arises: Why is this test more than a conventional BCM test? The scenario must exhibit high-impact potential and promise significant disruption to address this. These terms are essential as they substantiate the uniqueness of the test. Moreover, tying the scenario's impact to the financial system adds an extra layer of relevance.

Navigating the regulatory framework necessitates a nuanced understanding of definitions. The phrase 'unlikely to occur and remain' is particularly contentious. Engaging in constructive dialogue with regulators is crucial, as this definition is at the core of severe and possible scenarios. The evolution of your institution's technology and methodology can lead to clarity over time.

Creating a scenario for a live test involves complex considerations. Balancing customer involvement, bank closure, and supply chain disruption presents formidable challenges. The resource-intensive nature of this endeavour adds to the complexity. One approach is to design a scenario that embodies high-impact and significant disruption, deferring the 'unlikely to occur or remain' aspect to a later phase. This strategic approach allows for a gradual progression, learning from larger institutions and regulators as they navigate similar testing.

In conclusion, scenario testing is pivotal, demanding careful orchestration and collaboration. By aligning with regulators, learning from industry leaders, and strategically evolving your testing, you're positioning your organisation for resilience in the face of the unexpected.

Find out more about Blended Learning OR-300 [BL-OR-3] and OR-5000 [BL-OR-5]

To learn more about the course and schedule, click the buttons below for the OR-3 Blended Learning OR-300 Operational Resilience Implementer course and the OR-5 Blended Learning OR-5000 Operational Resilience Expert Implementer course.

	If you have any questions, click to contact us.