[OR] [MBSB] [E1] [C7] Establishing Organisational Goals for Operational Resilience

Chapter 7

Establishing Organisational Goals for Operational Resilience for MBSB Bank

Introduction

Operational Resilience becomes effective only when an organisation translates its understanding of the business, operating environment, Critical Business Services and key dependencies into clear organisational goals and measurable resilience objectives.

For MBSB Bank (MBSB), these goals should define what the bank intends to protect, what level of disruption it is prepared to withstand, how responsibilities should be assigned and how resilience should influence investment and management decision-making.

This is particularly important in the Malaysian financial services environment. Bank Negara Malaysia (BNM) issued its Discussion Paper on Operational Resilience in December 2025 to set out emerging regulatory considerations for strengthening financial institutions' ability to withstand disruption and maintain the continued delivery of financial services.

BNM's subsequent assessment of operational risk also highlights cyber risk, IT disruption, organisational risk, human error and increasing reliance on external service providers among the operational concerns facing financial institutions. 

MBSB's Operational Resilience goals should therefore extend beyond conventional objectives such as maintaining system availability or recovering within predefined Recovery Time Objectives.

The goals should focus ultimately on the continued delivery of Critical Business Services within acceptable levels of disruption, while minimising customer harm and protecting the bank and the wider financial ecosystem.

The purpose of this chapter is to establish a practical set of organisational goals and supporting objectives for MBSB Bank's Operational Resilience programme.

The rationale for defining these goals at this stage is that the previous organisational analysis has already established what MBSB does, the environment in which it operates, how Operational Resilience should be governed, which services may be critical and which organisational characteristics influence its resilience profile.

These findings now need to be translated into a common direction that can guide the subsequent planning, implementation, testing and continual improvement of Operational Resilience. BNM's emerging direction reinforces the importance of continued service delivery and stronger resilience practices across financial institutions. 

By the end of this chapter, the reader should be able to define an overarching Operational Resilience goal for MBSB and translate it into specific objectives covering Critical Business Services, dependency mapping, Impact Tolerances, scenario testing, governance, third-party resilience, technology and cyber resilience, customer protection, learning and continuous improvement.

These goals should provide a practical decision-making framework rather than simply a statement of intent. This is consistent with ISO 22316:2017, which recognises that organisational resilience objectives and initiatives should be tailored to the individual organisation rather than applied uniformly. 

Why Organisational Goals Are Necessary

Without clearly defined goals, Operational Resilience can easily become a collection of disconnected activities.

For example, MBSB may already undertake:

• Business Impact Analysis;
• Business Continuity Planning;
• disaster recovery;
• cybersecurity testing;
• technology resilience;
• outsourcing risk assessments;
• crisis exercises;
• operational risk assessments; and
• incident reviews.

Each activity contributes to resilience.

However, unless these capabilities are connected to a common organisational objective, they may remain focused on individual departments, systems or risk disciplines.

Operational Resilience provides that common objective.

A practical question for MBSB is:

What outcome should all resilience-related capabilities collectively achieve?

The answer should be centred on the delivery of MBSB's most important services.

Proposed Overarching Operational Resilience Goal for MBSB

A suitable overarching goal for MBSB could be:

To strengthen MBSB Bank's ability to anticipate, withstand, respond to, recover from and learn from operational disruption while continuing to deliver its Critical Business Services within established Impact Tolerances, minimising harm to customers and supporting the safety, soundness and confidence of the Malaysian financial system.

This goal combines several important principles.

It recognises that disruption cannot always be prevented.

It focuses on services rather than individual resources.

It recognises customer harm as an important measure of disruption.

It establishes Impact Tolerance as the boundary for acceptable disruption.

It recognises that recovery is only one part of resilience.

It also incorporates learning and improvement.

From Organisational Goal to Operational Objectives

The overarching goal should be translated into specific objectives.

For MBSB, these objectives can be organised around the following ten areas:

1. Critical Business Services

2. Customer and Stakeholder Protection

3. Interconnections and Interdependencies

4. Impact Tolerance

5. Severe but Plausible Scenario Testing

6. Vulnerability Reduction

7. Technology, Cyber and Data Resilience

8. Third-Party Resilience

9. Governance and Accountability

10. Learning and Continuous Improvement

Together, these objectives create a practical Operational Resilience agenda.

Goal 1 — Protect the Continued Delivery of Critical Business Services

The first organisational goal should be to ensure that MBSB clearly identifies and prioritises the business services whose disruption could cause unacceptable consequences.

For the purposes of this case study, the proposed MBSB CBS catalogue consists of:

The organisational objective should be:

Every approved Critical Business Service should have a clearly defined service scope, accountable owner, mapped dependencies, established Impact Tolerance and evidence that its resilience has been tested.

This turns the CBS inventory from a classification exercise into an active management framework.

Goal 2 — Minimise Customer and Stakeholder Harm

Operational Resilience should be customer-oriented.

For MBSB, a service may technically continue operating while customers experience unacceptable consequences.

For example, Digital Banking Services might remain partially available while customers cannot:

• authenticate;
• access their accounts;
• complete payments;
• view reliable balances; or
• receive assistance.

The organisational objective should therefore be:

Assess disruption according to the outcome experienced by the customer, not merely the status of MBSB's internal systems.

MBSB should consider factors such as:

• number of affected customers;
• customer segment;
• vulnerable customers;
• transaction volumes;
• financial value;
• time sensitivity;
• availability of alternatives;
• financial loss;
• inability to access funds; and
• potential loss of confidence.

BNM's operational-risk assessment specifically notes the importance of financial institutions' ability to withstand disruption and maintain the continued delivery of financial services. (Bank Negara Malaysia)

Goal 3 — Understand End-to-End Interconnections and Interdependencies

A Critical Business Service cannot be resilient unless MBSB understands what supports it.

The organisational objective should therefore be:

Maintain sufficient end-to-end visibility of the people, processes, technology, information, facilities, third parties and financial infrastructure required to deliver each Critical Business Service.

For example:

CBS-2 Domestic Funds Transfer and Payment Services

may depend on:

Customer Channel

↓

Authentication

↓

Core Banking

↓

Payment Application

↓

Telecommunications

↓

Payment Network

↓

Other Financial Institutions

MBSB should be able to identify:

• critical resources;
• upstream dependencies;
• downstream dependencies;
• single points of failure;
• common dependencies;
• concentration risks;
• third-party dependencies; and
• alternative arrangements.

The purpose of mapping is therefore not simply to produce diagrams.

It is to identify where service failure could originate and propagate.

Goal 4 — Establish Meaningful Impact Tolerances

Traditional BCM typically relies upon recovery metrics such as Recovery Time Objective and Maximum Tolerable Downtime.

These remain important, but Operational Resilience requires a broader service-level perspective.

MBSB should establish an organisational objective that:

Every Critical Business Service has a clearly defined and approved Impact Tolerance representing the maximum level of disruption that can be tolerated before customer or stakeholder consequences become unacceptable.

Impact Tolerance could incorporate dimensions such as:

• duration;
• transaction volume;
• number of customers affected;
• value of affected transactions;
• service degradation;
• backlog;
• geographical scope;
• data loss;
• financial impact; and
• customer harm.

For example, the tolerance for Customer Deposit and Account Access Services might differ significantly from the tolerance for another service because customers may rapidly experience harm when access to funds is lost.

Impact Tolerance should therefore be service-specific.

Goal 5 — Test Resilience Against Severe but Plausible Disruption

MBSB should not assume that documented continuity and recovery arrangements will perform as intended during a real event.

An organisational goal should therefore be:

Regularly test whether Critical Business Services can remain within established Impact Tolerances during severe but plausible disruption scenarios.

Illustrative scenarios could include:

• ransomware affecting multiple banking applications;
• core banking failure;
• authentication platform failure;
• prolonged telecommunications outage;
• payment infrastructure disruption;
• major third-party service-provider failure;
• data integrity compromise;
• significant flood;
• prolonged power disruption; and
• concurrent technology and cyber failures.

Scenario testing should focus on the end-to-end service, rather than merely whether an individual recovery plan has been executed successfully.

A successful technology recovery test does not necessarily demonstrate service resilience.

The question is:

Was the Critical Business Service maintained or restored without exceeding its Impact Tolerance?

Goal 6 — Identify and Reduce Resilience Vulnerabilities

Scenario testing, dependency mapping, incidents and risk assessments will identify weaknesses.

MBSB should establish a specific organisational goal that:

Material vulnerabilities affecting Critical Business Services are identified, prioritised, assigned to accountable owners and remediated within agreed timeframes.

Examples may include:

• single points of failure;
• inadequate failover capacity;
• dependency on one specialist;
• insufficient recovery capability;
• common infrastructure supporting multiple channels;
• lack of alternative telecommunications;
• overdependence on one provider;
• manual procedures that cannot handle required volumes;
• insufficient system capacity;
• inadequate data recovery;
• weak crisis escalation; and
• untested contingency arrangements.

The important principle is:

Operational Resilience testing should lead to resilience improvement.

A repeated vulnerability that remains unresolved after successive exercises indicates a governance problem, not merely a testing finding.

Goal 7 — Strengthen Technology, Cyber and Data Resilience

Technology is central to MBSB's service delivery.

BNM's current regulatory landscape includes its revised Risk Management in Technology (RMiT) policy document issued in November 2025, while BNM's operational-risk assessment identifies cyber risk and IT disruption among major operational risks. (Bank Negara Malaysia)

MBSB's organisational objective should therefore be:

Ensure that critical technology, cyber and information capabilities support the continued delivery and safe recovery of Critical Business Services.

This requires more than availability.

MBSB should consider:

Availability

Can the service be accessed?

Integrity

Can the information be trusted?

Confidentiality

Is sensitive information protected?

Capacity

Can systems support required volumes during disruption?

Recoverability

Can systems and data be restored within required service tolerances?

Security

Can service restoration occur without exposing customers or the bank to unacceptable cyber risk?

A technically available but corrupted banking platform is not resilient.

Goal 8 — Strengthen Third-Party and External Dependency Resilience

MBSB's CBSs will depend partly on organisations beyond its direct control.

The objective should therefore be:

Understand and actively manage critical third-party dependencies supporting MBSB's Critical Business Services, including the resilience implications of provider concentration and substitutability.

MBSB should determine:

• which provider supports which CBS;
• whether the provider supports several CBSs;
• the provider's realistic recovery capability;
• significant fourth-party dependencies;
• availability of alternatives;
• time required to migrate;
• communication arrangements during disruption; and
• whether the provider participates in relevant testing.

The objective is not to eliminate third-party dependency.

It is to ensure that MBSB understands and manages the service-level consequences of that dependency.

Goal 9 — Establish Clear Governance and Accountability

Operational Resilience should have clear ownership from Board level through to individual CBS and resource owners.

The organisational goal should therefore be:

Establish governance arrangements in which Operational Resilience is centrally coordinated, appropriately challenged and clearly owned across MBSB.

The governance pathway could be:

Board / Board Risk Committee

↓

Senior Management / Management Risk Committee

↓

Senior Executive Accountable for Operational Resilience

↓

Operational Resilience Steering Committee

↓

Critical Business Service Owners

↓

Supporting Resource Owners

MBSB should avoid a structure where everyone contributes but nobody is ultimately accountable.

Governance should clearly identify:

• who owns each CBS;
• who approves Impact Tolerances;
• who accepts residual risk;
• who approves remediation;
• who escalates breaches;
• who reports to the Board; and
• who independently challenges resilience assumptions.

Goal 10 — Integrate Existing Resilience Disciplines

Operational Resilience should not replace MBSB's existing risk and resilience capabilities.

Instead, an important organisational goal should be:

Integrate existing management disciplines around the continued delivery of Critical Business Services.

This can be represented as:

Operational Risk

Business Continuity Management

IT Disaster Recovery

Cybersecurity

Crisis Management

Incident Management

Third-Party Risk Management

Data Management

↓

Critical Business Service Resilience

The Critical Business Service becomes the common organising point.

For example, different functions may separately assess the same service:

• BCM assesses continuity;
• Technology assesses recovery;
• Cybersecurity assesses cyber controls;
• Operational Risk assesses operational threats;
• Third-Party Risk assesses providers.

Operational Resilience asks whether those controls collectively enable the service outcome to remain within tolerance.

Goal 11 — Develop Organisational Adaptability

Operational Resilience requires more than following predefined plans.

Severe disruption may develop differently from assumptions used when the plan was written.

MBSB therefore needs an organisational objective to:

Develop the capacity to adapt during disruption when normal operating and recovery assumptions no longer apply.

This may require:

• rapid prioritisation of critical services;
• temporary changes to procedures;
• reallocation of people;
• activation of alternative channels;
• controlled degradation of less-important services;
• temporary capacity changes;
• alternative customer communication;
• rapid engagement with providers; and
• Senior Management decisions based on incomplete information.

This aligns with the broader concept of organisational resilience in ISO 22316. ISO describes organisational resilience as applicable to organisations of all types and notes that specific objectives and initiatives should be tailored to individual organisational needs. (ISO)

Goal 12 — Build a Resilience-Supporting Culture

Operational Resilience cannot depend solely on policies and technology.

The organisation must understand its resilience responsibilities.

An objective for MBSB should therefore be:

Embed awareness of Critical Business Services and resilience responsibilities into normal organisational decision-making and behaviour.

Employees and management should understand:

• which services are critical;
• their role in supporting those services;
• how disruption should be escalated;
• which work should be prioritised during crisis;
• how alternative procedures work;
• when a service is approaching its Impact Tolerance; and
• how lessons from disruption should influence future activities.

ISO's guidance on organisational resilience emphasises the importance of resilient culture, shared values, awareness of changing contexts and strong leadership. (ISO)

Goal 13 — Integrate Resilience into Change and Strategic Decision-Making

Operational Resilience should not be something MBSB evaluates only after systems and processes have been implemented.

A further organisational objective should be:

Incorporate Operational Resilience considerations into material business, technology, outsourcing and transformation decisions before new vulnerabilities are introduced.

For example, when adopting a new technology platform, MBSB should ask:

• Which CBS will depend upon it?
• Is it creating a new single point of failure?
• Does it introduce third-party concentration?
• Does the solution have sufficient recovery capability?
• Can it support the required Impact Tolerance?
• What happens if the provider fails?
• Are alternative arrangements available?
• Has resilience been designed into the architecture?

This approach is more effective than attempting to remediate resilience weaknesses after implementation.

Goal 14 — Establish Continuous Learning and Improvement

Operational Resilience should evolve as MBSB changes.

An organisational objective should therefore be:

Continuously improve resilience using lessons from incidents, scenario tests, near misses, audits, regulatory reviews and changes in the operating environment.

The improvement cycle can be represented as:

Disruption / Test

↓

Observe Performance

↓

Identify Weaknesses

↓

Determine Root Causes

↓

Prioritise Corrective Actions

↓

Implement Improvements

↓

Retest

↓

Update Resilience Assessment

This turns incidents and exercises into sources of organisational learning.

Proposed Organisational Goals for MBSB Operational Resilience

The goals developed in this chapter can be consolidated as follows:

These goals provide a structured bridge between strategic intent and implementation.

Translating Goals into Measurable Objectives

Goals are most useful when their achievement can be assessed.

MBSB could therefore establish measures such as:

Metrics should remain decision-oriented.

The purpose is not to create the largest possible dashboard.

It is to provide management with enough information to answer:

Is MBSB becoming more resilient, and where does material vulnerability remain?

Establishing Target Outcomes

MBSB can translate each organisational goal into a target state.

For example:

Critical Business Services

Target outcome: All CBSs are formally identified, approved and assigned to accountable owners.

Dependency Mapping

Target outcome: MBSB can trace the end-to-end resources and external dependencies required to deliver every CBS.

Impact Tolerances

Target outcome: Senior Management and the Board understand the point at which disruption to each CBS becomes unacceptable.

Scenario Testing

Target outcome: MBSB has evidence that CBSs can operate within tolerance under severe but plausible disruption or has documented remediation where they cannot.

Vulnerability Management

Target outcome: Material weaknesses are visible, prioritised and subject to accountable remediation.

Governance

Target outcome: Material Operational Resilience decisions can be escalated rapidly to the appropriate management level.

Continuous Improvement

Target outcome: Lessons from disruption consistently result in changes to controls, processes, architecture or preparedness.

This allows MBSB to measure progress from current state toward desired resilience state.

Aligning Goals with ISO 22316

ISO 22316:2017 remains the published international standard on organisational resilience as of August 2026, although ISO indicates that a second edition is under development. (ISO)

ISO 22316 is particularly relevant because it does not prescribe uniform resilience objectives. Instead, organisational initiatives should be tailored to the organisation's needs. (ISO)

This principle is directly applicable to MBSB.

Its OR goals should reflect:

• its Islamic banking model;
• its customer profile;
• its digital banking strategy;
• its payment dependencies;
• its technology architecture;
• its third-party environment;
• its risk appetite;
• its regulatory obligations; and
• the potential consequences of disruption to its CBSs.

The objective is therefore not to copy another financial institution's resilience goals.

It is to establish goals appropriate to MBSB's own organisational context.

Relationship Between Goals, Strategy and Implementation

Operational Resilience goals should guide the programme through a clear chain:

Organisational Context

↓

Operational Resilience Goals

↓

Operational Resilience Strategy

↓

Roadmap

↓

Critical Business Services

↓

Impact Tolerances

↓

Scenario Testing

↓

Remediation and Investment

↓

Continuous Improvement

The goals define what MBSB wants to achieve.

The strategy determines how it intends to achieve it.

The roadmap determines when and in what sequence the work will occur.

The implementation methodology then delivers the required capabilities.

This distinction is important because a resilience programme without clear goals can become activity-driven rather than outcome-driven.

Questions for Senior Management and the Board

Before approving MBSB's Operational Resilience goals, leadership should consider questions such as:

• What customer outcomes must MBSB protect during disruption?
• Which Critical Business Services should receive the highest resilience priority?
• What level of disruption is unacceptable?
• Which common dependencies create the greatest risk?
• Which CBSs rely heavily on external providers?
• Where are the most significant single points of failure?
• Which services have not yet been tested against severe but plausible scenarios?
• What investments are required to reduce material vulnerabilities?
• What residual risks is MBSB prepared to accept?
• How will Senior Management know that resilience is improving?
• How will resilience considerations influence transformation and outsourcing decisions?
• What evidence should be provided to the Board?

These questions move Operational Resilience from a technical programme to an enterprise-management discipline.

Proposed MBSB Operational Resilience Goal Statement

For use in MBSB's Operational Resilience framework, a concise organisational statement could be:

MBSB Bank will strengthen its Operational Resilience capability to ensure that Critical Business Services can continue to be delivered within approved Impact Tolerances during severe but plausible operational disruptions. MBSB will achieve this by understanding end-to-end dependencies, protecting customers, strengthening technology and third-party resilience, establishing clear accountability, testing resilience capabilities and continuously addressing identified vulnerabilities.

This statement can provide a common point of reference for:

• Board oversight;
• Senior Management decisions;
• OR policies;
• resilience strategy;
• CBS ownership;
• scenario testing;
• investment decisions; and
• organisational communication.

From Organisational Goals to the Operational Resilience Planning Methodology

This chapter completes an important part of understanding MBSB.

The progression across this eBook has established:

Understand MBSB Bank

↓

Examine Its Operating Environment

↓

Establish the Operational Resilience Team

↓

Identify Critical Business Services

↓

Understand MBSB's Key Characteristics

↓

Establish Organisational Operational Resilience Goals

The next stage is to convert these foundations into structured implementation.

This can be achieved through the Operational Resilience Planning Methodology:

PLAN

Establish the organisational foundation, governance, strategy, risk boundaries and implementation roadmap.

IMPLEMENT

Identify Critical Business Services, map their interconnections and interdependencies, establish Impact Tolerances, conduct scenario testing and improve resilience based on lessons learned.

SUSTAIN

Embed Operational Resilience within culture, communications, training, self-assessment and independent review.

The organisational goals established in this chapter provide the strategic anchor connecting all three phases.

Establishing organisational goals converts MBSB Bank's understanding of Operational Resilience into a clear statement of intended outcomes. Without these goals, activities such as dependency mapping, Impact Tolerance setting, scenario testing, technology recovery and third-party assessment can remain disconnected.

With clearly defined goals, each activity contributes to a common purpose: maintaining the continued delivery of MBSB's Critical Business Services within acceptable levels of disruption.

BNM's December 2025 Discussion Paper and subsequent operational-risk observations reinforce the importance of strengthening financial institutions' ability to withstand disruption and maintain financial-service delivery. Cyber threats, technology disruption, organisational change and increasing reliance on external providers make resilience an ongoing management concern rather than a one-time compliance exercise. 

For MBSB, the overarching objective can therefore be summarised as:

Protect the continued delivery of Critical Business Services, minimise customer harm and strengthen MBSB's ability to withstand, adapt to and recover from severe operational disruption.

Achieving this objective requires MBSB to understand its dependencies, establish meaningful Impact Tolerances, test severe but plausible scenarios, remediate vulnerabilities, strengthen technology and third-party resilience, maintain clear accountability and continuously learn from incidents and exercises.

ISO 22316 supports this organisation-specific approach by recognising that resilience objectives should reflect the individual organisation's circumstances rather than follow a uniform model. (ISO)

The key takeaway from this chapter is therefore:

Operational Resilience goals define the outcomes MBSB intends to protect; the Operational Resilience Planning Methodology provides the structured pathway for achieving them.

With the organisational context, operating environment, governance structure, Critical Business Services, organisational characteristics and resilience goals now established, MBSB has the foundation needed to begin its structured Operational Resilience implementation journey.

The subsequent eBooks in Operational Resilience in Action: The MBSB Approach can build upon this foundation by moving from understanding the organisation to planning, implementing, testing and sustaining its Operational Resilience capabilities.