---
title: [OR] [MAS] [E2] [C2] Identifying Critical Business Services (CBS)
description: [OR] [MAS] [E2] [C2] Identifying Critical Business Services (CBS)
---

[eBook OR](https://blog.bcm-institute.org/ebook-or)

# [\[OR\] \[MAS\] \[E2\] \[C2\] Identifying Critical Business Services (CBS)](https://blog.bcm-institute.org/ebook-or/or-mas-e2-c2-identifying-critical-business-services-cbs)

 Written by [Moh Heng Goh](https://blog.bcm-institute.org/ebook-or/author/moh-heng-goh) | Apr 25, 2026 11:15:19 AM

### eBook 2: Chapter 2

###  Identifying Critical Business Services (CBS)

#### **What is a Critical Business Service (CBS)?**

A **Critical Business Service** is defined as:

*An end-to-end service provided to external customers or stakeholders, where disruption would result in intolerable harm to customers, financial markets, or the institution itself.*

This definition reinforces three important principles:  

- **Service-Oriented**: Focuses on outcomes delivered, not internal processes
- **End-to-End**: Covers the entire delivery chain, including dependencies
- **Impact-Driven**: Determined by the severity of disruption consequences

Examples of services (not processes) include:

- Processing customer payments
- Providing access to digital banking platforms
- Executing securities transactions

A CBS is **not**:

- A department (e.g., IT, Operations)
- A system (e.g., core banking system)
- A process (e.g., account reconciliation)

Instead, it represents the **complete service the customer experiences**.

 

#### **Criteria for Identifying CBS**

The identification of CBS must be grounded in **clear, measurable criteria**. The BCM Institute and MAS guidance highlight two primary dimensions:

##### **Customer Impact**

This criterion evaluates whether, in the event of a service disruption, a service is disrupted.

Key considerations include:

- **Number of customers affected**
- **Vulnerability of customers** (e.g., retail vs institutional)
- **Criticality of service usage** (daily banking vs occasional use)
- **Ability of customers to access alternatives**

Examples:

- A disruption to **digital banking access** affects a large number of customers immediately
- A failure in **payment processing** may prevent customers from meeting financial obligations

###### High customer impact = Strong candidate for CBS

 

#### **Financial and Systemic Impact**

This criterion evaluates the **broader consequences on the institution and financial system**.

Key considerations include:

- **Financial losses** (direct and indirect)
- **Liquidity and funding implications**
- **Impact on financial market stability**
- **Interconnectedness with other institutions**

Examples:

- Failure in **interbank payment systems** may trigger systemic risks
- Disruption in **trade settlement services** can affect market confidence

###### High systemic impact = Strong candidate for CBS

 

#### **Additional Supporting Criteria**

While customer and systemic impact are primary, organisations should also consider:

- **Regulatory obligations**
- **Legal and compliance implications**
- **Reputational damage**
- **Time sensitivity of the service**

These factors help refine and validate CBS selection.

 

#### **MAS Expectations on Service Continuity**

The Monetary Authority of Singapore requires financial institutions to adopt a **service-centric resilience approach**, with CBS identification forming the foundation.

##### **Key Regulatory Expectations**

MAS expects institutions to:

- **Identify Critical Business Services**

- **Define Impact Tolerances**

- **Ensure Continuous Delivery**

- **Perform End-to-End Mapping**

- **Conduct Scenario Testing**

 

#### **From BCM to Operational Resilience**

Traditional BCM focuses on:

- Recovery of systems and processes

Operational resilience expands this to:

- **Sustaining service delivery within acceptable thresholds**

This shift means:

- Success is not just recovery
- Success is maintaining **continuous service availability within impact tolerance**

 

#### **Service Continuity as a Regulatory Outcome**

MAS emphasises that institutions must demonstrate:

- Ability to **continue delivering CBS** during disruptions
- Capability to **prioritise resources** toward critical services
- Evidence that **customer outcomes are protected**

CBS identification is therefore **not optional**—it is the foundation of regulatory compliance.

 

#### **Principles for Identifying CBS**

Based on BCM Institute’s methodology, organisations should apply the following principles:

##### **Service-Centric Perspective**

Focus on **external outcomes**, not internal activities.

##### **End-to-End Coverage**

Consider the **entire delivery chain**, including:

- Front-end channels
- Back-end processing
- Third-party providers

##### **Impact-Based Prioritisation**

Use **objective criteria** to assess impact rather than subjective judgment.

##### **Cross-Functional Collaboration**

Engage:

- Business units
- IT
- Risk and compliance
- Operations

##### **Dynamic Review**

CBS identification must be:

- **Reviewed regularly**
- Updated based on changes in business, technology, or risk landscape

 

#### **Methodology for Identifying CBS**

The BCM Institute outlines a structured methodology aligned to \[OR-P2-S1\]:

##### **Step 1: Define Business Services**

- List all services delivered to customers
- Group them into logical service categories

##### **Step 2: Assess Impact**

- Evaluate each service against:

##### **Step 3: Apply Thresholds**

- Determine which services exceed defined impact thresholds

##### **Step 4: Validate with Stakeholders**

- Conduct workshops with:

##### **Step 5: Finalise CBS List**

- Obtain formal approval
- Document CBS definitions clearly

Output: A **prioritised list of Critical Business Services**.

 

#### **Examples of Critical Business Services**

 

In the context of Singapore’s financial institutions, common CBS include:

##### **Payments and Funds Transfer Services**

- Domestic and cross-border payments
- Real-time payment systems
- Corporate payment processing

**Impact:**

- Immediate customer disruption
- Potential systemic financial instability

##### **Digital Banking Services**

- Mobile and online banking platforms
- Customer account access and transactions

**Impact:**

- High customer dependency
- Reputational and regulatory consequences

##### **Deposit and Account Services**

- Account opening and maintenance
- Deposits and withdrawals
- Balance and statement services

**Impact:**

- Core banking functionality
- Essential for financial inclusion

##### **Lending and Credit Services**

- Loan disbursement
- Credit line management

**Impact:**

- Economic and customer financial impact

##### **Trading and Investment Services**

- Securities trading
- Wealth management platforms

**Impact:**

- Market integrity and investor confidence

 

#### **Key Challenges in Identifying CBS**

Organisations often face the following challenges:

- **Confusing processes with services**
- **Over-identification** (everything becomes “critical”)
- **Lack of clear impact metrics**
- **Organisational silos limiting visibility**
- **Insufficient senior management engagement**

Addressing these challenges requires:

- Strong governance
- Clear methodology
- Cross-functional collaboration

 

Identifying **Critical Business Services (CBS)** is the cornerstone of operational resilience.

It shifts the organisation’s focus from internal recovery processes to **protecting what truly matters—customer outcomes and financial stability**.

Aligned with the expectations of the Monetary Authority of Singapore and grounded in the BCM Institute’s structured methodology, CBS identification enables organisations to:

- Prioritise resilience investments effectively
- Understand and manage critical dependencies
- Define meaningful impact tolerances
- Demonstrate regulatory compliance

Ultimately, a well-defined set of CBS ensures that organisations are not just prepared to recover from disruptions but also capable of **sustaining essential services under extreme conditions**, which is the true objective of operational resilience.

 

| **eBook 1** | **C1** | **C2** | **C3** | **C4** | **C5** |
| --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |
|  **eBook 1**  | **C6** | **C7** | **C8** | **C9** | **C10** |
|     |     |     |     |  |  |

Gain Competency: 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.

#### More Information About OR-5000 \[OR-5\] or OR-300 \[OR-3\]

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

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