[OR] [CB] [E1] [C5] Identifying Critical Business Services

eBook 1: Chapter 5

Critical Business Services (CBS) of Clarien Bank in an Operational Resilience Program

Introduction

In an operational resilience program, identifying Critical Business Services (CBS) is a foundational step.  

These services must remain available or recover quickly after disruptions to protect clients, ensure regulatory compliance, and maintain financial stability.

According to the BCM Institute, a CBS is a service provided by the organisation (or on its behalf) whose disruption could cause intolerable harm to clients or undermine the resilience of the financial system.

For a financial institution like Clarien Bank, CBS align with core banking, wealth management, and commercial services that are central to both revenue generation and societal trust in its operations.

Purpose of This Chapter

This chapter aims to clearly identify and define Clarien Bank's Critical Business Services (CBS) within the context of implementing an operational resilience program.

Before an organisation can test severe but plausible scenarios, establish impact tolerances, or strengthen recovery capabilities, it must first determine which services are truly “critical.”

The purpose of this chapter is therefore to guide the reader through the rationale, criteria, and structured identification of services whose disruption could cause intolerable harm to clients, threaten regulatory compliance, or undermine the bank’s financial stability and reputation.

By the end of this chapter, the reader is expected to understand not only which services qualify as CBS for Clarien Bank, but also why they are classified as such.

The objective is to enable the reader to appreciate the distinction between important internal processes and externally delivered services that directly impact customers and market confidence.

This foundational understanding prepares the reader for subsequent chapters on impact tolerance setting, dependency mapping, and scenario testing—each of which depends on a clearly defined CBS framework.

Core Banking Services

As a full-service bank, Clarien provides a wide range of fundamental banking services that are inherently critical:

• Personal Banking
  Clarien offers digital and self-service personal banking solutions, including savings, chequing, automated transfers, account administration, and digital support. These services are essential for everyday customer financial activity.
• Transaction Processing
  Real-time payment processing, funds transfers, and digital payments are vital. Disruption here directly affects customers’ ability to move money, pay bills, and manage cash flows—leading to intolerable harm if prolonged.
• Digital Banking Platforms (iBank)
  Clarien’s online and mobile banking platforms provide 24/7 access to accounts and transactions. Outages on these digital channels would significantly affect customers' access to their finances.
• Card Services
  Clarien issues global payment cards (e.g., Visa products with enhanced fraud protection), which support retail payments and cashless transactions. Interruptions could halt electronic commerce and point-of-sale activity.

Each of these services underpins the everyday financial lives of individuals and businesses, making them inherently critical.

Commercial and Corporate Services

Clarien’s commercial banking services support business clients and broader economic activity:

• Commercial Lending and Credit Facilities
  Services such as business loans, overdrafts, and working capital facilities are critical to corporate liquidity and customer business continuity. Any pause could create widespread financial stress for businesses.
• Merchant and Payment Solutions
  Enabling commercial clients to accept payments securely and reliably is integral to economic activity. These services also incorporate compliance with data security standards, such as PCI DSS, which Clarien assists clients in meeting.
• Foreign Exchange and Treasury Services
  These services facilitate international trade, cross-border payments, and foreign currency management, which are essential for international businesses and the bank’s risk management.

Wealth, Asset, and Trust Management Services

Clarien’s wealth and investment services are strategic revenue drivers and fiduciary in nature:

• Private Banking & Wealth Management
  These personalised services include asset management, estate planning, and holistic financial strategies. Disruption would significantly impact high-net-worth clients relying on bespoke advice and portfolio execution.
• Trust and Corporate Services
  Expanded via acquisition of Omnium Trust and related corporate services, these offerings manage client wealth structures, fiduciary responsibilities, and corporate administration—critical for client legal and financial obligations.

These services involve high client trust and regulatory scrutiny, making resilience here essential.

Supporting Infrastructure and Data Systems

Beyond outward-facing services, several internal functions also constitute critical services due to their dependency relationships:

• IT Systems and Data Security
  Clarien’s core banking systems, data tokenisation solutions, and secure authentication services support all front-end and back-end operations.
  Data breaches or system outages would critically impair customer account access and regulatory compliance.
• Communication and Customer Engagement Platforms
  Systems that manage customer communications, alerts, and notifications play a critical role in maintaining trust and transparency, especially during disruption events.

Regulatory and Risk Management Functions

While not external services, robust compliance and risk functions are critical to the bank’s continued operation:

• Regulatory Reporting and Compliance
  Reporting processes and controls required by the Bermuda Monetary Authority and international standards protect the bank’s operating licence and legal standing.
• Risk Assessment and Business Continuity Planning
  These functions ensure Clarien can anticipate and respond to threats, preserving the continuity of CBS.

Critical Business Services for Clarien Bank

Critical Business Services (CBS) for Clarien Bank

Notes on Classification

• CBS-1 to CBS-4 represent Foundational Banking Services.
• CBS-5 to CBS-7 represent Commercial & Economic Support Services.
• CBS-8 and CBS-9 represent Wealth & Fiduciary Services.
• CBS-10 and CBS-11 are Institution-Sustaining Services that underpin all external CBS.

Identifying Critical Business Services is the cornerstone of operational resilience. For Clarien Bank, these services span retail and commercial banking, payments, digital channels, lending, wealth and fiduciary services, and the enabling infrastructure that sustains them.

The classification is not based solely on revenue contribution, but on the potential consequences of disruption—particularly the extent of customer harm, regulatory breaches, financial instability, and reputational damage.

With the CBS now clearly articulated, Clarien Bank is positioned to move from identification to action. The next steps involve mapping dependencies, defining impact tolerances, and testing resilience under severe but plausible scenarios.

A well-defined CBS inventory ensures that resilience investments are prioritised where they matter most—protecting customers, safeguarding trust, and maintaining the stability of the financial ecosystem in which the bank operates.

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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.