Operational Resilience

[OR] [P3-S5] [1-1] Prepare IQR: Scope Determination

Written by Moh Heng Goh | Sep 17, 2024 10:21:50 AM

[1-1] Defining the Scope of IQR

The scope of the IQR is a crucial factor in determining the effectiveness and efficiency of the review process.

A well-defined scope ensures that the review focuses on the most relevant areas, avoids unnecessary breadth, and provides valuable insights for enhancing operational resilience.

When defining the scope, consider factors such as alignment with organizational objectives, regulatory requirements, materiality, resource constraints, and previous review experiences.

By carefully evaluating these factors, you can tailor the scope to your specific needs and ensure that the review provides the most valuable insights for your organization.

Purpose

The scope of the IQR should be carefully defined to ensure that the review is focused, efficient, and provides valuable insights.

A well-defined scope will help guide the review process, ensure that all critical areas are evaluated, and prevent the review from becoming overly broad or time-consuming.

Key Considerations

  • Alignment with Organizational Objectives: The scope of the IQR should align with your organization's overall operational resilience objectives and strategy.

  • Regulatory Requirements: Consider any relevant regulatory requirements or industry best practices that may influence the scope of the review.

  • Materiality: Focus on areas that are most material to your organization's resilience, such as critical business services, risk management practices, or incident response capabilities.

  • Resource Constraints: When determining the scope, consider the available resources (time, budget, personnel). If resources are limited, a narrower scope may be more feasible.

  • Previous Reviews: If your organization has conducted previous IQRs, consider the scope of those reviews and identify any areas that may require additional focus.

Potential Scope Areas

  • Risk Management: Effectiveness of risk identification, assessment, and mitigation strategies.

  • Business Continuity Planning: Adequacy and effectiveness of BC and DR Plans.

  • Incident Response: Efficiency and effectiveness of incident response procedures.

  • Technology Resilience: Security, reliability, and availability of IT infrastructure and systems.

  • Employee Awareness and Preparedness: Employee understanding and preparedness for OR-related activities.

  • Regulatory Compliance: Adherence to relevant industry regulations and standards.

  • Continuous Improvement: Effectiveness of processes for identifying and addressing areas for improvement.

By carefully defining the scope of the IQR, you can ensure that the review is focused, efficient, and provides valuable insights into your organization's operational resilience.


Additional Explanatory Note 

  Definition Explanation Definition  
  Self-Assessment

is to capture and document the steps taken towards operational resilience.

is to provide a comprehensive and objective evaluation of the organisation's strategy and ability to respond to disruptions.

  
  Self-Assessment Document is to demonstrate the organisation’s resilience journey and how they have achieved compliance with the regulations.  
  Important Business Service is a service provided by an organisation, or by another person on behalf of the organisation, to one or more clients which, if disrupted, could:
  • cause intolerable harm to any one or more of the organisation’s clients, or
  • pose a risk to the soundness, stability or resilience of the financial system or the orderly operation of the financial markets.
  
  Critical Business Service is a business service that, if disrupted, is likely to significantly impact the FSI’s safety and soundness, its customers or other FSI that depend on the business service.  
  Critical Operations is defined as a business output that, if interrupted during the operational period, will cause financial loss, damage, or interruption to the delivery of goods or services essential to the organization’s continued operation or success.  
         
"Sustain" Phase of the OR Roadmap
Introduce Culture Change Develop Communication Strategy Implement Training and Awareness Provide Self-assessment Conduct Independent Quality Review  
 

More Information About Operational Resilience OR-5000 [BL-OR-5] or OR-300 [BL-OR-3] Course

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