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eBook 1: Chapter 1

Alliance Bank

In an era marked by rapid technological advancement, increasingly complex regulatory landscapes, and the ever-present threat of disruption, a financial institution's ability to anticipate, withstand, recover from, and adapt to adverse events is no longer optional—it is essential.

This foundational need has placed Operational Resilience at the heart of strategic and risk management agendas across the global banking sector.

For Alliance Bank Malaysia, a dynamic and forward-looking financial institution, operational resilience is both a regulatory mandate and a business imperative.

This eBook, Operational Resilience at Alliance Bank: A Strategic Implementation Guide, is designed to serve as a practical, context-specific resource for financial services industry professionals, stakeholders, and decision-makers.

It explores how Alliance Bank is advancing its journey toward operational resilience through structured, organisation-wide strategies, underpinned by a deep understanding of its internal functions and external pressures.

Why Focus on Operational Resilience?

Operational resilience is more than disaster recovery or business continuity; it is an institution’s capacity to deliver critical business services under operational stress, regardless of the source of disruption.

Whether faced with cyber threats, natural disasters, system failures, or economic shocks, banks like Alliance Bank must continue to serve customers, protect financial stability, and uphold trust.

In Malaysia, Bank Negara Malaysia (BNM) has emphasised the importance of resilience through various regulatory guidelines and expectations, urging financial institutions to adopt a proactive, rather than reactive, approach. In alignment with this vision, Alliance Bank has taken significant steps to integrate resilience into its operations.

Structure of the Book

This guide is divided into three eBooks:

1. Understanding Your Organisation
2. Implementing Operational Resilience for Alliance Bank Malaysia
3. Starting Your Operational Resilience Implementation

This first eBook, Understanding Your Organisation, lays the groundwork for effective operational resilience by examining Alliance Bank's unique attributes and operating environment.

Understanding the organisation's structure, culture, critical services, and strategic goals is crucial before any continuity or resilience frameworks can be effectively implemented.

What You Will Learn in eBook 1: "Understanding Your Organisation"

In the chapters that follow, readers will gain insight into:

• The background and strategic direction of Alliance Bank Malaysia.
• The regulatory, technological, and economic conditions shape its operating environment.
• The composition and responsibilities of the operational resilience team within the bank.
• The identification of critical business services and how they align with customer expectations and regulatory obligations.
• Organisational characteristics that influence resilience include leadership, governance, and culture.
• How resilience goals are established to align with long-term business objectives and stakeholder needs.

This knowledge serves as a cornerstone for the book's second section, which moves from strategic insight to tactical execution, outlining how Business Continuity Management (BCM) is operationalised within the bank to enhance its resilience posture.

What You Will Learn in eBook 2: "Implementing Operational Resilience for Alliance Bank Malaysia"

In the second section of this eBook, we transition from theory to practice by exploring how Alliance Bank Malaysia is implementing its operational resilience framework through a structured methodology.

This framework is designed to be strategic and iterative, ensuring that resilience is not treated as a one-time project but a continuous cycle of improvement and alignment with business priorities.

Alliance Bank Malaysia has adopted a three-phase Operational Resilience Planning Methodology to ensure its resilience efforts are comprehensive, actionable, and sustainable over time.

These phases—Plan, Implement, and Sustain—are aligned with regulatory expectations and industry best practices, and they guide the bank’s actions from initial capability assessment through long-term cultural integration.

Phase 1: Plan

The Plan phase focuses on preparing the foundation for operational resilience by understanding the bank’s current state and setting a clear path forward. The five key stages are:

1. Assess Capability and Maturity – Evaluate the bank’s resilience capabilities across people, processes, and technology.
2. Analyse Gap – Identify gaps between current capabilities and desired outcomes.
3. Develop Strategy and Roadmap – Craft a strategic plan and implementation roadmap tailored to Alliance Bank’s risk landscape and business model.
4. Confirm Risk Appetite – Align resilience goals with the bank’s risk appetite and tolerance levels.
5. Develop and Embed Governance – Establish a strong governance framework to ensure accountability, oversight, and strategic alignment.

Phase 2: Implement

The Implementation phase involves implementing the operational resilience strategy by identifying, testing, and refining critical components. This phase is broken down into the following five stages:

1. Identify Critical Business Services – Determine which services are essential to customers and financial stability.
2. Map Processes and Resources – Trace the systems, people, facilities, and third parties that support those services.
3. Set Impact Tolerance – Define acceptable levels of disruption for each critical service.
4. Conduct Scenario Testing – Simulate disruption scenarios to assess the resilience of critical services and identify vulnerabilities.
5. Improve Lessons Learnt – Use findings from testing and incidents to enhance processes and inform continuous improvement.

Phase 3: Sustain

The final phase, Sustain, ensures that operational resilience is embedded in Alliance Bank’s culture and ongoing operations. It includes five core activities:

1. Introduce Cultural Change – Foster a resilience mindset across all levels of the organisation.
2. Develop a communication strategy to ensure clarity and consistency in messaging to stakeholders on resilience objectives and responsibilities.
3. Implement Training and Awareness – Provide regular training to ensure staff understand their role in supporting resilience.
4. Provide Self-assessment – enable business units to evaluate their resilience maturity and identify areas for improvement.
5. Conduct Independent Quality Review – Undertake periodic external reviews to validate effectiveness and ensure alignment with evolving best practices.
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With these structured phases, Alliance Bank Malaysia has committed to a holistic approach that addresses the technical and procedural elements of resilience, as well as the cultural and strategic dimensions.

By embedding resilience into its core operations, the bank strengthens its ability to serve customers, navigate uncertainty, and safeguard financial stability in an increasingly volatile world.

In the following chapters, we will explore how each phase of this methodology is applied within the bank, supported by case examples, process diagrams, and lessons learned.

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.

To learn more about the course and schedule, click the buttons below for the OR-300 Operational Resilience Implementer and OR-5000 Operational Resilience Expert Implementer courses.