[OR] [MBT] [E2] [P3] [C14] The Five Stages of the "Sustain" Phase in OR Planning Methodology

The Five Stages of the "Sustain" Phase in Metrobank's Operational Resilience Planning Methodology

Introduction

The "Sustain" phase of Metrobank's Operational Resilience Planning Methodology is essential for ensuring that the bank's resilience initiatives are integrated and sustained over time.

This phase involves embedding resilience into the organisational culture, refining operational processes, and continuously improving the existing framework.

Compliance with the Bangko Sentral ng Pilipinas (BSP) Operational Resilience Guidelines is critical in achieving these goals.

Metrobank’s approach emphasises the need for continual adaptation to evolving threats, operational complexities, and regulatory expectations.

In this chapter, we examine the five key stages in Metrobank’s operational resilience framework's "sustain" phase.

For each stage, we provide an overview of the implementation process, examples, and how it aligns with BSP's operational resilience standards, which aim to strengthen institutions' financial stability in the Philippines.

Stage 1: Introduce Cultural Change

[Sustain Phase – Stage 1]

Summary of Implementation Process

Introducing cultural change is crucial for embedding operational resilience into Metrobank’s core values and practices.

This involves leadership fostering a culture of resilience that permeates all levels of the organisation, from senior management to front-line employees.

The change should also be communicated to stakeholders to promote a unified, resilience-driven mindset.

Key Actions

• Leadership commitment to resilience across all operations.
• Integrating resilience into the core values of Metrobank.
• Establishing resilience as part of daily decision-making processes at all levels.

Examples

Metrobank's leadership could initiate a series of workshops on resilience awareness, aligning this initiative with BSP's requirement that financial institutions integrate operational resilience into their organisational culture.

BSP Compliance Reference

BSP mandates that banks adopt a proactive stance on resilience, emphasising risk-based decision-making and resilience as a core competency across their workforce.

This could include regular internal communications from senior management about resilience priorities, ensuring alignment with BSP’s guidelines on fostering a risk-aware culture.

Stage 2: Develop Communication Strategy

[Sustain Phase – Stage 2]

Summary of Implementation Process

An effective communication strategy ensures that resilience efforts are clearly communicated to all internal and external stakeholders.

This includes employees, customers, regulators, and business partners.

The communication strategy should facilitate transparency by keeping all relevant parties informed about resilience initiatives, crisis management protocols, and updates or improvements to the operational resilience program.

Key Actions

• Developing internal communication channels for resilience updates (e.g., emails, intranet).
• Establishing external communication protocols for regulatory updates and client interactions during disruptions.
• Creating a feedback loop for continuous improvement in communication efforts.

Examples

Metrobank can utilise internal communication platforms to keep staff updated on resilience training, operational disruptions, and recovery processes.

Externally, the bank can create transparent, client-focused communications regarding business continuity measures.

BSP Compliance Reference

This aligns with BSP’s requirement that financial institutions maintain effective communication with stakeholders, particularly during crises, and provide timely, accurate updates in line with the BSP Circular No. 1085.

The BSP guidelines stress the need for clear communication channels during disruptions to maintain operational transparency and regulatory compliance.

Stage 3: Implement Training and Awareness

[Sustain Phase – Stage 3]

Summary of Implementation Process

Training and awareness initiatives are key to ensuring Metrobank employees are well-prepared to support the bank's resilience efforts.

This stage includes ongoing education programs focusing on operational resilience, crisis management, and risk mitigation.

These programs should be tailored to different departments and roles within the organisation to ensure the development of the right skill sets.

Key Actions

• Developing and delivering resilience-focused training programs for staff at all levels.
• Conducting scenario-based workshops and tabletop exercises to test response readiness.
• Rolling out ongoing e-learning modules on key resilience topics.

Examples

Metrobank can introduce an annual training program covering the essentials of business continuity, crisis communication, and risk management, in line with BSP’s directive to maintain operational resilience competency among staff.

BSP Compliance Reference

Under BSP regulations, banks must ensure that all employees involved in critical business functions receive regular training in crisis management and recovery procedures.

This ensures compliance with BSP Circular No. 1085, which mandates that financial institutions build internal capabilities to manage and respond to disruptive events.

Stage 4: Provide Self-Assessment

[Sustain Phase – Stage 4]

Summary of Implementation Process

Self-assessments allow Metrobank to evaluate the effectiveness of its operational resilience framework and identify areas for improvement.

This stage encourages internal evaluations against established benchmarks and performance metrics.

The self-assessment process also helps gauge how well the bank meets regulatory requirements and operational resilience objectives.

Key Actions

• Designing and implementing a self-assessment tool to evaluate resilience maturity across various departments.
• Conducting periodic self-assessments to track progress and identify gaps.
• Using the results to refine and improve operational resilience strategies.

Examples

Metrobank may develop an internal tool to measure the maturity of resilience practices across key business units, aligning it with BSP’s requirement for regular reviews and internal audits.

BSP Compliance Reference

The BSP guidelines emphasise the importance of self-assessment within an institution’s risk management framework.

These assessments allow financial institutions to track their operational resilience journey and identify gaps in compliance with BSP's Operational Resilience Framework.

Metrobank’s self-assessment could include reviewing incident management processes, business continuity plans, and recovery time objectives (RTOs), as outlined in BSP Circular No. 1085.

Stage 5: Conduct an Independent Quality Review

[Sustain Phase – Stage 5]

Summary of Implementation Process

An independent quality review offers an unbiased evaluation of Metrobank's operational resilience framework.

This stage is designed to ensure that the bank’s resilience efforts align with both international best practices and BSP regulations.

External parties with expertise in operational resilience and risk management should conduct the review.

Key Actions

• Engaging third-party auditors or consultants to conduct an independent evaluation of the resilience framework.
• Reviewing audit findings to identify areas that require improvement or adjustment.
• Updating resilience plans based on audit recommendations.

Examples

Metrobank can engage an independent consulting firm with expertise in operational resilience to conduct an annual review of its resilience framework.

BSP Compliance Reference

This complies with BSP’s guidelines that require an independent review of resilience plans to ensure their effectiveness and alignment with regulatory standards.

In line with BSP Circular No. 1085, which mandates independent audits of critical systems and processes, Metrobank will engage external auditors to assess the robustness of its business continuity plans, disaster recovery protocols, and risk management strategies.

The "Sustain" phase of Metrobank's Operational Resilience Planning Methodology is a crucial component in ensuring the bank’s resilience practices remain effective and compliant with evolving regulatory standards.

By introducing cultural change, developing robust communication strategies, implementing ongoing training, conducting self-assessments, and engaging in independent quality reviews, Metrobank strengthens its resilience framework, ensuring it remains adaptive in the face of new challenges.

Compliance with the operational resilience guidelines issued by Bangko Sentral ng Pilipinas (BSP), particularly through regular self-assessments, transparent communication, and independent audits, ensures that Metrobank’s resilience efforts not only meet regulatory requirements but also set a benchmark for excellence in the Philippine banking sector.

These actions are key to building a resilient organisation that can thrive amid disruptions, protect stakeholder interests, and contribute to the stability of the financial system.

Regulatory requirement or project milestone. With a strong culture, Metrobank will be better positioned to withstand disruptions, serve its customers without interruption, and contribute to the stability of the Philippine financial system.

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.