In the context of operational resilience, setting appropriate impact tolerances is a critical step to ensure that Metrobank’s critical business services (CBS), particularly CBS-11 Regulatory and Compliance Reporting, can withstand and recover from disruptions.
Impact tolerance refers to the maximum time that a process or service can be disrupted before it results in unacceptable consequences, whether operational, regulatory, or reputational.
It also includes the maximum data loss that is acceptable during such disruptions.
This chapter provides a detailed analysis of the impact tolerances for each of the sub-critical business services (Sub-CBS) under CBS-11, ensuring compliance with regulatory standards while maintaining operational effectiveness.
The goal is to establish resilience benchmarks for each sub-service, allowing Metrobank to monitor and manage risks proactively.
|
Sub-CBS Code |
Sub-CBS |
Maximum Tolerable Downtime (MTD) |
Maximum Tolerable Data Loss (MTDL) |
Customer Impact |
Regulatory Impact |
Impact Type |
Current Resilience Status |
Action Required |
|
11.1 |
Regulatory Reporting Framework |
4 hours |
1 day |
Moderate disruption to service continuity for customers relying on accurate regulatory information |
Non-compliance with regulatory reporting timelines can lead to fines or penalties |
Operational, Regulatory |
Resilient, but requires monitoring |
Enhance the reporting system resilience and ensure failover procedures are in place |
|
11.2 |
Compliance Monitoring and Auditing |
6 hours |
1 day |
Low disruption to customer services, but reduced assurance of compliance |
Regulatory breach due to delayed monitoring or auditing processes |
Operational, Regulatory |
Satisfactory, but periodic testing required |
Implement real-time monitoring capabilities and ensure automated alerts for potential failures |
|
11.3 |
Submission of Regulatory Reports |
2 hours |
12 hours |
No direct customer impact, but delayed reporting could affect service timelines |
Regulatory non-compliance due to the late submission of mandatory reports |
Regulatory |
Resilient, with regular system checks |
Optimize the submission process with contingency procedures and alternative methods |
|
11.4 |
Risk Assessment and Mitigation in Reporting |
8 hours |
1 day |
Potential indirect impact on customer trust and business reputation |
Regulatory failure in assessing and mitigating risks may result in penalties or forced shutdowns |
Operational, Regulatory |
Needs improvement: Incident response protocols are not fully defined |
Strengthen risk mitigation strategies, review risk assessment timelines |
|
11.5 |
Reporting Systems and Technology |
4 hours |
6 hours |
Low customer impact, but delays may affect internal compliance processes |
System failure may prevent timely reporting, leading to regulatory fines or sanctions |
Operational, Regulatory |
Stable, though dependent on external technology vendors |
Build system redundancies and conduct regular stress tests to validate technology resilience |
Establishing and monitoring impact tolerances for CBS-11 Regulatory and Compliance Reporting is essential to maintaining Metrobank’s operational resilience.
By defining clear tolerances for downtime and data loss, the bank can ensure that it meets regulatory requirements, minimises customer disruptions, and avoids significant financial penalties.
Ongoing resilience assessments, including routine system testing and risk mitigation exercises, will further enhance Metrobank’s ability to withstand disruptions and ensure continued compliance.
This approach will position Metrobank to manage risk more effectively, supporting long-term stability in the face of potential operational challenges.
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Building Resilient Banking Operations: The Metrobank Operational Resilience Implementation Guide |
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| CBS-11 Regulatory and Compliance Reporting | |||||
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