[OR] [FW] [PO] Operational Resilience: Framework vs Policy

Operational Resilience Framework vs Operational Resilience Policy: Understanding the Difference

In today’s fast-evolving risk landscape, operational resilience has emerged as a critical capability for organisations seeking to withstand disruptions and continue delivering critical business services.

As institutions design and implement resilience programs, two foundational components often arise: the Operational Resilience Framework and the Operational Resilience Policy.

While these terms are sometimes used interchangeably, they serve distinct roles within an organisation’s resilience strategy.

This article outlines the differences between these two important elements, their interconnections, and their complementary roles.

Definition and Purpose

Operational Resilience Framework

The Operational Resilience Framework is a comprehensive structure that outlines how an organisation identifies, manages, and adapts to disruptions that threaten its critical operations.

It encompasses the processes, governance, roles, tools, and metrics used to build resilience across the enterprise.

Purpose: To provide a structured, strategic, and holistic approach to achieving operational resilience objectives.
Scope: Broad and system-wide, often incorporating multiple disciplines such as risk management, business continuity, IT disaster recovery, third-party risk, cyber resilience, and crisis management.
Focus: Implementation and integration of operational resilience capabilities.

Operational Resilience Policy

The Operational Resilience Policy is a formal document that defines the organisation’s stance, principles, and expectations regarding operational resilience.

It outlines senior management's commitment, sets high-level objectives, and defines governance and accountability.

Purpose: To establish the intent, guiding principles, and governance requirements for operational resilience.
Scope: Narrower than the framework; focused on policy directives, boundaries, and oversight.
Focus: Governance, compliance, and accountability.

Key Components

Component	Operational Resilience Framework	Operational Resilience Policy
Governance Structure	Describes roles, responsibilities, escalation paths	Identifies accountable parties (e.g., CRO, Board)
Strategy and Objectives	Provides execution roadmap and milestones	States the organisation’s resilience vision and goals
Critical Operations	Details mapping, impact tolerances, and dependency analysis	Outlines the commitment to identifying critical services
Tools and Methodologies	Includes risk assessments, scenario testing, monitoring tools	Not typically included
Regulatory Alignment	Aligns with specific jurisdictional guidelines (e.g., FCA, RBI, BSP)	Asserts compliance intentions
Update Mechanism	Regularly reviewed based on risk environment	Scheduled for periodic review and Board approval

Interdependence

The policy sets the tone and direction, while the framework provides the means to implement and operationalise those directives.

The Operational Resilience Policy acts as the foundation. It is typically approved by senior leadership and reflects the organisation’s top-down commitment to resilience.
The Operational Resilience Framework translates this commitment into action, ensuring all business units, support functions, and stakeholders understand how to embed resilience into their day-to-day operations.

Ownership and Approval

Policy: Owned by the Risk or Compliance department, approved by the Board or Executive Committee. It is a governance-level document.
Framework: Owned by the Operational Resilience function or the Chief Risk Officer (CRO), reviewed and endorsed by relevant governance bodies such as the Risk Management Committee.

Regulatory Context

Increasingly, regulators across jurisdictions are mandating both a documented policy and a practical framework:

The UK FCA and PRA require firms to define impact tolerances and demonstrate a clear framework for resilience testing.
The Reserve Bank of India (RBI) and the Bangko Sentral ng Pilipinas (BSP) highlight the need for governance-driven policies and implementation mechanisms.
APRA CPS 230 (Australia) similarly mandates both strategic intent (policy) and operational capabilities (framework).

Practical Example

A multinational bank may have an Operational Resilience Policy that:

States its commitment to continuing critical business services and operations within defined impact tolerances,
Assigns accountability to the Chief Operating Officer,
Requires compliance with global regulatory expectations.

Its Operational Resilience Framework, on the other hand, would do the following:

Identify critical business services,
Map internal and external dependencies,
Establish monitoring dashboards and testing protocols,
Integrate with third-party risk and IT disaster recovery procedures.

Summing Up ...

While the Operational Resilience Policy provides the "why" and "who" behind the organisation's resilience efforts, the Operational Resilience Framework delivers the "how."

Together, they form a powerful duo: one provides strategic intent and governance, and the other ensures effective implementation and ongoing resilience in the face of disruption.

Organisations that treat both components equally will be better positioned to manage operational risks and protect critical services.

Operational Resilience Framework Versus Policy

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