[OR] [PO] Understanding the Operational Resilience Policy

Strengthening Your Organisation: The Essentials of an Operational Resilience Policy

As organisations face increasing threats—from cyberattacks and system outages to global pandemics and supply chain disruptions—maintaining the continuity of critical operations has never been more important.

In response, many institutions are adopting formal resilience strategies. One foundational document in any such strategy is the Operational Resilience Policy.

But what exactly is an Operational Resilience Policy? And why is it so crucial?

Definition: What Is an Operational Resilience Policy?

An Operational Resilience Policy is a formal, high-level document that outlines an organisation’s commitment, principles, and governance structure for ensuring operational resilience.

It sets the tone from the top, defines responsibilities, and provides the strategic direction for building and sustaining resilience across critical operations.

Think of it as the “why” and “who” behind the organisation’s resilience efforts—while the Operational Resilience Framework provides the “how.”

Purpose of the Policy

The main objectives of an Operational Resilience Policy are to:

Demonstrate senior management’s commitment to operational resilience.
Define governance structures and accountability for resilience efforts.
Set high-level goals and principles that guide the organisation’s approach.
Align with regulatory expectations and industry best practices.
Mandate developing and maintaining operational resilience programs, frameworks, and testing protocols.

Key Components of an Operational Resilience Policy

While each policy will be tailored to the organisation’s size, industry, and regulatory context, most policies include the following key elements:

Component	Description
Policy Statement	A clear expression of the organisation’s commitment to operational resilience.
Scope	Specifies which business units, locations, services, and systems are covered.
Objectives	Outlines what the policy aims to achieve (e.g., continuity of critical services).
Governance and Accountability	Defines roles and responsibilities, including Board and senior management.
Definitions and Terminology	Provides clarity on key terms like "critical operations" and "impact tolerance."
Policy Principles	Lists guiding principles such as customer protection, risk-based approach, etc.
Regulatory Alignment	References applicable laws, regulations, and standards (e.g., RBI, FCA, BSP).
Compliance and Review	Describes how the policy will be enforced, reviewed, and updated regularly.

How It Supports Operational Resilience

The Operational Resilience Policy provides the foundation for the broader Operational Resilience Framework.

It authorizes the creation of structures and processes, allocates responsibilities, and ensures consistency across departments and functions.

Importantly, it also serves as a reference for internal audits, regulatory inspections, and enterprise-wide training.

Who Owns the Policy?

Typically, the policy is:

Owned by the Chief Risk Officer (CRO), Head of Operational Resilience, or a similar executive.
Approved by the Board of Directors or an executive risk/governance committee.
Implemented by cross-functional teams spanning risk, operations, IT, compliance, and business units.

Regulatory Context

Globally, regulators now expect organisations to maintain an Operational Resilience Policy as part of broader resilience programs:

The UK’s FCA and PRA require firms to document governance arrangements for operational resilience.
The Reserve Bank of India (RBI) mandates that operational resilience efforts be supported by policies approved by senior management.
The Bangko Sentral ng Pilipinas (BSP) calls for a clear policy and board oversight on resilience planning and execution.
APRA CPS 230 in Australia requires a Board-approved policy covering operational risk and resilience.

Example: What Might a Policy Statement Look Like?

“[Organisation Name] is committed to maintaining the continuity of critical business services in the face of disruptions. This policy defines the principles, roles, and responsibilities to ensure operational resilience across our operations. All business units are required to adhere to this policy and contribute to the implementation of our resilience framework.”

Summing Up ...

An Operational Resilience Policy is not just a formality—it’s a strategic tool guiding an organisation’s resilience approach.

The policy clearly defines roles, responsibilities, and expectations, ensuring that resilience is embedded in the organisation’s culture, operations, and governance.

It provides the “north star” for practical frameworks, testing strategies, and investments.

In today’s unpredictable world, a well-crafted policy is the first step toward becoming truly resilient.

Operational Resilience Framework Versus Policy

More Information About Blended Learning OR-5000 [BL-OR-5] or OR-300 [BL-OR-3]

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