CBS-6 Treasury and Capital Markets Operations
![[OR] [MBT] [E3] [CBS] [6] [ITo] Establish Impact Tolerances](https://no-cache.hubspot.com/cta/default/3893111/295bdd87-307b-433a-9b5d-9bc148cf1097.png)
Establishing impact tolerances is a foundational requirement in operational resilience frameworks and serves as a critical mechanism to quantify the level of disruption Metrobank can absorb before causing intolerable harm to customers, financial market stability, or regulatory confidence.
For the Treasury and Capital Markets Operations business service, the implications of service disruption extend beyond institutional operations to potential systemic financial market disruption due to Metrobank’s role in liquidity management, market trading, and settlement activities.
Impact tolerances, therefore, must be set with particular rigour, reflecting strict timing requirements, data integrity expectations, and regulatory obligations across trading, settlement, risk management, and compliance activities.
The following table defines appropriate impact tolerance parameters for each Sub-CBS under CBS-6, taking into consideration expected operational performance under severe but plausible scenarios, in alignment with industry supervisory expectations.
![Banner [Table] [OR] [E3] Establish Impact Tolerance](https://no-cache.hubspot.com/cta/default/3893111/627c33a8-714d-40af-9a2b-0d7957fb8afa.png)
Table P4: Establish Impact Tolerance for CBS-6
|
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 |
|
6.1 |
Liquidity and Cash Management |
≤ 2 hours |
Zero data loss |
Severe liquidity stress for institutional clients; payment delays |
High regulatory scrutiny; potential liquidity breach reporting |
Operational, Financial, Reputational |
Adequate with manual fallback |
Enhance automated intraday liquidity stress dashboards |
|
6.2 |
Money Market Operations |
≤ 4 hours |
Zero data loss |
Missed placements/withdrawals; liquidity inefficiencies |
Potential breach of funding and liquidity ratios |
Financial, Regulatory |
Adequate |
Strengthen early-warning liquidity triggers and alternate execution channels |
|
6.3 |
FX Trading and Settlement |
≤ 2 hours |
Zero data loss |
Delayed settlement; market exposure losses |
Compliance and market integrity concern |
Market, Regulatory |
Strong |
Review cross-border contingency settlement arrangements |
|
6.4 |
Fixed Income and Securities Trading |
≤ 4 hours |
Zero data loss |
Missed trades; price risk |
Market accountability concerns |
Market, Financial, Reputational |
Adequate |
Expand DR connectivity with trading platforms and custodians |
|
6.5 |
Derivatives Trading and Risk Management |
≤ 2 hours |
Zero data loss |
Counterparty risk build-up; valuation gaps |
Regulatory concern on market stability |
Market, Systemic Risk |
Moderate |
Accelerate intraday margin monitoring and backup valuation tools |
|
6.6 |
Treasury Operations and Back-Office Support |
≤ 8 hours |
≤ 15 minutes |
Settlement delay; reconciliation backlog |
Post-trade compliance challenge |
Operational, Regulatory |
Adequate |
Implement automated reconciliation failover tool |
|
6.7 |
Collateral and Margin Management |
≤ 2 hours |
Zero data loss |
Margin call failures; counterparty exposure escalation |
Breach of collateral obligations |
Counterparty, Regulatory |
Moderate |
Implement real-time collateral tracking redundancy |
|
6.8 |
Treasury Risk Monitoring and Compliance |
≤ 2 hours |
Zero data loss |
Inaccurate exposure monitoring; limit breaches |
Regulatory compliance failure |
Regulatory, Reputational |
Adequate |
Implement parallel real-time risk monitoring instance |
|
6.9 |
Investment Portfolio Management |
≤ 6 hours |
≤ 15 minutes |
Suboptimal execution timing; portfolio valuation risk |
Risk management compliance issue |
Financial, Strategic |
Strong |
Periodically test model fallback and DR execution |
|
6.10 |
Market Data and Pricing Support |
≤ 1 hour |
Zero data loss |
Incorrect pricing; valuation errors |
Market integrity requirement |
Market, Operational |
Moderate |
Strengthen vendor failover and latency monitoring |
![Banner [Summing] [OR] [E3] Establish Impact Tolerance](https://no-cache.hubspot.com/cta/default/3893111/5e80e50f-5e3e-44ea-8c43-16bf42d4f3b5.png)
Impact tolerances for Treasury and Capital Markets Operations must reflect high sensitivity to timing, accuracy, and regulatory obligations due to the systemic nature of the service.
The tolerances defined above provide quantified thresholds that Metrobank must maintain to safeguard customer interests, ensure market integrity, and uphold supervisory expectations.
Continued investment in automated failover mechanisms, real-time monitoring, and cross-platform redundancy will elevate resilience maturity.
Regular scenario testing, particularly across clearing, collateral management, liquidity stress, and market data outages, remains essential to validate that Metrobank remains within defined impact tolerances during severe but plausible disruptions.
![[OR] [MBT] [E3] [CBS] [6] [DP] Treasury and Capital Markets Operations](https://no-cache.hubspot.com/cta/default/3893111/f44e0912-887a-4e1e-a815-4316bd7f60f1.png)
![[OR] [MBT] [E3] [CBS] [6] [MD] Map Dependency](https://no-cache.hubspot.com/cta/default/3893111/c4c144c9-a25f-48ed-9f19-8c0264ba4120.png)
![[OR] [MBT] [E3] [CBS] [6] [MPR] Map Processes and Resources](https://no-cache.hubspot.com/cta/default/3893111/b195a136-29d8-4140-8348-86ef0a3183b0.png)
![[OR] [MBT] [E3] [CBS] [6] [SuPS] Identify Severe but Plausible Scenarios](https://no-cache.hubspot.com/cta/default/3893111/2888e7b3-4111-4d59-9125-b65619bf9a37.png)
![[OR] [MBT] [E3] [CBS] [6] [ST] Perform Scenario Testing](https://no-cache.hubspot.com/cta/default/3893111/286d5568-e43c-49cf-a429-2eb529f5d2b8.png)
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.
![[BL-OR] [3-4-5] View Schedule](https://no-cache.hubspot.com/cta/default/3893111/d0d733a1-16c0-4b68-a26d-adbfd4fc6069.png)
![[BL-OR] [3] FAQ OR-300](https://no-cache.hubspot.com/cta/default/3893111/f20c71b4-f5e8-4aa5-8056-c374ca33a091.png)
![Email to Sales Team [BCM Institute]](https://no-cache.hubspot.com/cta/default/3893111/3c53daeb-2836-4843-b0e0-645baee2ab9e.png)
