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

 eBook 1: Chapter 1

Introduction to Operational Resilience at EastWest Banking Corporation

Introduction

This eBook series, “Operational Resilience Implementation Blueprint: EastWest Banking Corporation,” provides a structured and practical roadmap for strengthening operational resilience across the organisation.

The series is organised into three interrelated eBooks:

• Understanding Your Organisation
• Implementing Operational Resilience
• Starting Your OR Implementation

This opening chapter provides a comprehensive summary of the first eBook, “Understanding Your Organisation,” which focuses on EastWest Banking Corporation.

It lays the foundation for operational resilience by examining the organisation’s structure, operating context, and strategic priorities.

Understanding the organisation is a critical first step in any operational resilience programme.

It ensures that resilience initiatives are aligned with business objectives, customer expectations, and regulatory obligations—particularly in the Philippine banking sector.

Purpose of Chapter

The purpose of this chapter is to:

• Provide a holistic overview of EastWest Banking Corporation as the subject of this case study
• Establish a baseline understanding of its operating environment and business model
• Highlight the importance of identifying Critical Business Services (CBS)
• Introduce the key organisational components required to support operational resilience
• Set the stage for subsequent phases of planning and implementation

By the end of this chapter, the reader will clearly understand how organisational context drives the design and execution of an effective operational resilience framework.

Overview of eBook 1: Understanding Your Organisation

The first eBook is structured to build a comprehensive understanding of EastWest Banking Corporation through six key components:

 Introduction to the Case Study

The case study introduces EastWest Banking Corporation as a major player in the Philippine banking sector, providing a wide range of services including retail banking, corporate banking, and digital financial services.

This section outlines the rationale for selecting the bank as a case study, emphasising its evolving digital capabilities, expanding customer base, and exposure to both traditional and emerging risks.

Understanding EastWest Banking Corporation

This section provides an in-depth overview of the bank’s:

• Core business lines (retail, corporate, and treasury services)
• Customer segments (individual, SME, and corporate clients)
• Delivery channels (branches, ATMs, online banking, and mobile platforms)

Understanding these elements is essential to identifying which services are critical to customers and the broader financial system.

 Operating Environment

EastWest Banking Corporation operates within a dynamic and highly regulated environment shaped by:

• Regulatory oversight by the Bangko Sentral ng Pilipinas
• Increasing adoption of digital banking and fintech integration
• Rising cyber threats and technology dependencies
• Customer expectations for 24/7 availability and seamless service delivery

This section highlights how external factors—such as regulatory requirements and technological disruption—directly influence the bank’s resilience priorities.

Composition of the Operational Resilience Team

Operational resilience is not confined to a single department. Instead, it requires a cross-functional governance structure involving:

• Senior management and board oversight
• Risk management and compliance functions
• IT and cybersecurity teams
• Business unit leaders responsible for service delivery
• Third-party and vendor management teams

This section emphasises the importance of clear roles, accountability, and coordination across the organisation to ensure resilience objectives are effectively implemented.

Critical Business Services (Operations): Key Considerations

A central concept in operational resilience is the identification of Critical Business Services (CBS)—services whose disruption would have intolerable impacts on:

• Customers
• Financial markets
• Regulatory compliance
• The organisation’s reputation

For EastWest Banking Corporation, typical CBS may include:

• Deposit and account services
• Payments and funds transfer services
• Digital banking and customer access channels
• Lending and credit services

This section underscores the need to prioritise these services and understand their dependencies, forming the basis for subsequent mapping, impact tolerance setting, and scenario testing.

 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 EastWest Banking Corporation

Several characteristics influence how operational resilience should be designed and implemented:

• Customer-centric service model with increasing digital engagement
• Hybrid operating structure combining physical branches and digital platforms
• Dependence on third-party service providers (e.g., payment networks, IT vendors)
• Regulatory-driven risk management practices
• Growing exposure to cyber and technology risks

These characteristics highlight the complexity of ensuring service continuity in a modern banking environment.

Establishing Organisational Goals for Operational Resilience

The final component of eBook 1 focuses on defining clear and measurable goals for operational resilience, such as:

• Maintaining the availability of critical services within defined impact tolerances
• Enhancing incident response and recovery capabilities
• Strengthening third-party risk management
• Improving visibility of interdependencies across systems and processes
• Aligning resilience strategies with regulatory expectations (e.g., BSP guidelines)

These goals provide strategic direction and ensure that resilience efforts are aligned with both business priorities and supervisory requirements.

Key Takeaways from eBook 1

From this foundational eBook, several key insights emerge:

• Operational resilience begins with understanding the organisation—its services, structure, and environment
• Critical Business Services must be clearly identified and prioritised
• Resilience is a cross-functional responsibility, requiring strong governance and coordination
• External factors, including regulation and technology, significantly influence resilience strategies
• Clear organisational goals are essential to guide implementation and measure success

This introductory chapter establishes the foundation for the Operational Resilience Implementation Blueprint for EastWest Banking Corporation.

By thoroughly understanding the organisation—its business model, operating environment, and critical services—the bank is better positioned to design a resilience framework that is both practical and compliant with regulatory expectations.

The insights from eBook 1 serve as essential input for the next eBook 2, “Implementing Operational Resilience,” where the focus shifts from understanding to action—translating strategy into structured methodologies, processes, and measurable outcomes.

Ultimately, a well-informed starting point ensures that EastWest Banking Corporation can build a resilient organisation capable of withstanding disruptions, adapting to change, and continuing to deliver critical services under all conditions.

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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.