[OR] [P1-S5] [R] Operational Resilience Governance Report

Key Governance Requirements and Expectations

Introduction

In an era marked by increasing operational disruptions, from cyber incidents to third-party outages and geopolitical shocks, operational resilience has become a critical regulatory and strategic priority for financial institutions.

This chapter outlines the governance mechanisms implemented by [Bank Name] to comply with the BASEL Principles for Operational Resilience and relevant national regulatory guidelines, such as those issued by [insert: Bank Negara Malaysia (BNM), Monetary Authority of Singapore (MAS), or Bank of England].

Governance forms the cornerstone of a sound operational resilience framework. It ensures that the bank’s ability to withstand and recover from disruptions is not just reactive but embedded into its leadership, risk management practices, and decision-making culture.

Purpose of Report

This report focuses on the roles and responsibilities of the Board of Directors, Senior Management, and Risk Committees in defining, directing, and monitoring the bank’s operational resilience efforts.

It provides a transparent view of how governance structures support accountability, strategic alignment, oversight of critical business services, and continuous improvement.

Operational Resilience Governance Report

Submitted to: [Insert Regulator – e.g., Bank Negara Malaysia / MAS / Bank of England]
Reporting Entity: [Insert Bank Name]
Reporting Period: [e.g., Q1 202X or Annual Report – FY202X]
Date of Submission: [Insert Date]

1. Executive Summary

This report outlines the governance framework and activities implemented to strengthen the operational resilience of [Bank Name] in alignment with the requirements of [BASEL Principles for Operational Resilience] and [insert relevant local regulation: e.g., BNM BCM Guidelines 2022 / MAS Notice PSN06 / BoE SS1/21].

2. Governance Structure for Operational Resilience

Component	Description
Board Responsibility	The Board is ultimately accountable for setting and overseeing the operational resilience strategy, approving impact tolerances, and ensuring resources are adequate.
Senior Management Responsibility	Responsible for operationalising Board directives, ensuring resilience is embedded across functions, and managing key resilience risks.
Committee Oversight	Oversight provided by the Board Risk Committee, Operational Risk Committee, and BCM Steering Committee.

Attachment: Governance Org Chart (Appendix A)

3. Board Oversight Activities

Activity	Details
Approval of Impact Tolerances	Impact tolerances for [#] Important Business Services were approved on [insert date].
Review of Resilience Framework	The Board reviewed and endorsed the updated Operational Resilience Framework on [date].
Scenario Test Results	Reviewed results of [number] scenario tests conducted between [period]. Gaps and remediation actions endorsed.
Crisis Simulation Participation	Board members participated in a strategic tabletop exercise on [date].
Key Resilience Metrics Reviewed	Recovery Time Objectives (RTOs), impact tolerance breaches, and BIA reports were presented quarterly.

4. Senior Management Accountability

Function	Assigned Role	Accountability Highlights
Chief Risk Officer	Executive Sponsor	Oversees resilience implementation and risk integration
Head of OR	Programme Lead	Coordinate planning, identify CBS, testing, and reviews
CIO	Technology Resilience	Ensures alignment of IT continuity and cyber resilience
COO	Operational Lead	Drives cross-functional engagement and service mapping

Reporting and Escalation: Senior Management provides monthly updates to the Risk and BCM Committees and quarterly updates to the Board.

5. Risk Committee Oversight

Committee	Frequency	Key Oversight Actions
Board Risk Committee	Quarterly	Reviewed resilience posture and impact tolerance breaches
Operational Risk Committee	Monthly	Oversaw risk controls, resilience testing gaps, and third-party dependencies
BCM Steering Committee	Bi-monthly	Reviewed BIA outcomes, scenario testing results, and improvement plans

6. Key Governance Deliverables and Milestones (Reporting Period)

Date	Activity	Status	Remarks
Jan 202X	Board Approval of Updated Resilience Framework	✅ Completed	Updated based on new regulatory requirements
Feb 202X	Approval of Updated Important Business Services List	✅ Completed	Refreshed mapping across business units
Mar 202X	Board Risk Committee – Scenario Testing Review	✅ Completed	Reviewed three key disruption scenarios
Apr 202X	Board Meeting – Resilience Posture Report	✅ Completed	Green status; minor third-party risk noted

7. Challenges and Continuous Improvements

Area	Challenge	Action Taken
Third-Party Resilience	Limited visibility into some critical vendor recovery capabilities	Launched a new third-party assessment framework
Cross-Unit Coordination	Fragmented mapping of dependencies	Introduced a unified resilience platform with ownership tags
Board Awareness	Complex technical reporting	Introduced simplified dashboards and impact-based reporting

8. Compliance with Regulatory Requirements

Regulation	Requirement	Compliance Status
BASEL OR Principle 1	Governance with clear Board and senior management responsibilities	✅ Compliant
BNM BCM Guidelines (2022)	Board and senior management oversight of BCM and resilience	✅ Compliant
MAS PSN06 Guidelines	Oversight by the Board and regular reporting	✅ Compliant

9. Appendices

Appendix A: Governance Structure Diagram
Appendix B: Impact Tolerances – Approved Statements
Appendix C: Resilience Testing Report Summary
Appendix D: Minutes of Board Risk Committee Meetings
Appendix E: BCM Steering Committee Terms of Reference

10. Declaration

We confirm that this report provides an accurate and comprehensive overview of our governance implementation for operational resilience, in line with regulatory expectations.

Signed:
[Name, Designation – e.g., Chief Risk Officer]
[Date]

Summing Up ...

Governance is the anchor that ensures operational resilience is more than a compliance exercise—it becomes an enterprise-wide commitment driven by leadership at the highest levels.

The active involvement of the Board, the accountability of Senior Management, and the vigilance of the Risk Committees are instrumental in maintaining resilience across critical business services (CBS) and in meeting regulatory expectations.

Through structured oversight, clear role definition, periodic reviews, and scenario-based testing, [Bank Name] has strengthened its ability to anticipate, withstand, respond to, and recover from operational disruptions.

The governance practices outlined in this report demonstrate our commitment to maintaining resilience as a strategic imperative and to safeguarding the interests of our customers, stakeholders, and the broader financial ecosystem.

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