[OR] [BDO] [E1] [C1] Introducing OR Case Study

 eBook 1: Chapter 1

Operational Resilience Case Study of BDO Unibank

Introduction

As one of the largest and most systemically important financial institutions in the   Philippines, BDO Unibank offers a wide range of banking services, including retail banking, corporate banking, treasury operations, and digital financial services.

  Its scale, complexity, and extensive customer base make it an ideal case study for understanding how operational resilience can be effectively established within a modern banking environment.

This chapter serves as the introductory summary of the first eBook, “Understanding Your Organisation,” within the broader series “Building Operational Resilience: A Case Study of BDO Unibank.”  

It sets the stage for the entire series by providing a consolidated view of the key elements that define the organisation—its structure, operating environment, critical services, and strategic priorities. These elements are essential for building a strong foundation before progressing into the planning and implementation phases of operational resilience.

In the context of increasing regulatory expectations, digital transformation, and evolving threat landscapes, financial institutions such as BDO Unibank must move beyond traditional business continuity approaches to a more integrated, proactive resilience model. 

This introduction highlights the importance of first understanding the organisation holistically—recognising that resilience is not just about responding to disruptions, but about ensuring the continuous delivery of critical business services under all conditions.

The series is organised into three interconnected eBooks:

• Understanding Your Organisation (this eBook)
• Implementing Operational Resilience for BDO Unibank (eBook 2)
• Starting Your OR Implementation for BDO Unibank (eBook 3)

This first eBook lays the essential groundwork. It focuses on building a deep understanding of the organisation—its structure, services, operating environment, and strategic priorities—before embarking on resilience planning and execution.

Purpose of Chapter

Operational resilience begins with clarity. Before identifying risks, mapping dependencies, or conducting scenario testing, organisations must first understand what they do, how they operate, and what truly matters.

This eBook provides that clarity for BDO Unibank by:

• Establishing organisational context
• Identifying key services and stakeholders
• Understanding the internal and external operating environment
• Aligning resilience objectives with business strategy

It serves as the foundation for all subsequent operational resilience activities.

Understanding Your Organisation: BDO Unibank

This section provides a detailed view of BDO’s:

• Organisational structure
• Business lines (retail, corporate, SME, treasury)
• Distribution channels (branches, ATMs, digital platforms)
• Customer segments

It emphasises how the bank operates as an interconnected system, where disruptions in one area can cascade across multiple services.

 BDO Unibank’s Operating Environment

BDO operates within a dynamic and highly regulated environment shaped by:

• Regulatory oversight from the Bangko Sentral ng Pilipinas (BSP)
• Increasing digitalisation and cybersecurity risks
• Customer expectations for 24/7 service availability
• Interdependencies with payment systems, clearing networks, and third-party providers

This chapter highlights the external pressures and dependencies that influence resilience planning.

Composition of an Operational Resilience Team for BDO Unibank

• • Operational resilience is not owned by a single function—it requires cross-functional collaboration.

    This section defines the structure of a typical Operational Resilience (OR) team at BDO, involving:

    • Business unit leaders (service owners)
    • Risk management and compliance teams
    • IT and cybersecurity specialists
    • Business continuity and crisis management professionals

    It underscores the importance of governance, accountability, and clear roles in executing resilience initiatives.

Critical Business Services of BDO Unibank: Key Considerations for Operational Resilience

A central concept in operational resilience is the identification of Critical Business Services (CBS)—services that, if disrupted, could cause intolerable harm to customers or the financial system.

For BDO Unibank, these typically include:

• Retail deposit and account services
• Payment and funds transfer services
• Corporate and SME lending
• Treasury and liquidity management

This chapter introduces the criteria for identifying CBS, focusing on:

• Customer impact
• Financial stability implications
• Regulatory expectations

Note to Philippines Readers:  As this is an international operational resilience training and certification course, the terminology of "Critical Operations" as per BSP policy is standardised as "Critical Business Services"  or CBS.   

 Key Characteristics of BDO Unibank

This section synthesises the defining characteristics that shape BDO’s resilience approach:

• Scale and complexity – Extensive branch network and diverse service portfolio
• High transaction volumes – Particularly in payments and retail banking
• Digital transformation – Growing reliance on online and mobile banking
• Interconnected systems – Dependencies across internal systems and external infrastructures

These characteristics highlight why resilience must be proactive, integrated, and continuously evolving.

Organisational Goals for OR

The final section of this eBook focuses on aligning operational resilience with BDO’s strategic objectives.

Key goals include:

• Ensuring continuity of critical services under disruption
• Protecting customers and maintaining trust
• Meeting regulatory requirements (e.g., BSP guidelines on operational resilience)
• Enhancing the bank’s ability to respond and recover from severe but plausible scenarios

These goals provide a clear direction for subsequent phases of the resilience programme.

“Understanding Your Organisation” is not merely an introductory exercise—it is a critical enabler of effective operational resilience. For BDO Unibank, this eBook establishes:

• A clear understanding of its business model and operating environment
• Identification of what matters most—its critical business services
• Alignment of resilience objectives with organisational priorities

With this foundation in place, the next eBook, “Implementing Operational Resilience,” will transition from understanding to action—introducing methodologies, tools, and frameworks to operationalise resilience across the bank.

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For organisations looking to accelerate their journey, BCM Institute’s training and certification programs, including the OR-5000 Operational Resilience Expert Implementer course, provide in-depth insights and practical toolkits for effectively embedding this model.