[OR] [BSP] Guidelines on Operational Resilience: Strengthening Financial Stability in the Philippines

Enhancing Resilience in the Financial Sector

Background of OR Training

BCM Institute launched its Operational Resilience (OR) training and certification course as early as the implementation by the Basel Committee on Banking Supervision (BCBS) and the pioneering central banks. The course caters to professionals implementing OR in Europe and North America. 

BCM Institute has the necessary experience and content to train and assist BSP-supervised financial institutions (BSFI) governed by Bangko Sentral Ng Pilipinas (BSP) in implementing its OR program.

Implementation of OR in the Philippines

The Monetary Board has introduced guidelines on operational resilience as part of the BSP's initiative to ensure the continued delivery of essential financial services.

These guidelines promote BSFIs' ability to manage and mitigate disruptions' impact, ensuring smooth operations despite shocks such as pandemics, cyberattacks, or natural disasters.

The guidelines reflect BSP’s commitment to fostering inclusive and sustainable economic growth by safeguarding the financial system's critical functions.

Policy Statement: Enhancing Resilience in the Financial Sector

In alignment with the BSP's mandate to promote financial stability, a key objective is to strengthen the operational resilience of BSFIs. This includes enhancing their ability to manage potential disruptions, particularly concerning critical operations.

As the financial sector becomes increasingly digitised, the role of BSFIs in maintaining economic stability has become even more significant.

Given the inevitability of disruptions, such as pandemics or cyberattacks, BSFIs' capacity to recover quickly is vital for minimising the impact on the broader economy.

BSFIs are expected to develop operational resilience frameworks that reflect their operations' scale, complexity, and risk profile.

They must establish tolerances for disruption, map out critical operations, and conduct regular testing to ensure continuity during crises.

This proactive approach ensures that BSFIs can continue delivering essential services despite unforeseen shocks.

Scope of Application: Who Must Comply?

The operational resilience guidelines apply to all BSFIs, requiring them to implement their resilience frameworks at the solo and group-wide levels, where applicable.

This includes parent banks and their material entities, such as subsidiary banks.

Foreign bank branches operating in the Philippines are also expected to align with these guidelines by adopting relevant resilience policies and procedures from their Head Offices, adjusted to the local operational context.

By developing these frameworks, BSFIs will be better equipped to manage crises, ensuring the stability and reliability of the financial system, which plays a crucial role in supporting the country’s economic growth.

These first two sections of the BSP's operational resilience guidelines set the foundation for ensuring that the financial sector is prepared to face modern challenges, aligning the goals of financial stability and economic resilience.

Summing Up...

BCM Institute's operational resilience (OR) training program was developed in response to the global emphasis on enhancing financial institutions' operational capabilities, particularly following the Basel Committee's recommendations.

This initiative focuses on equipping professionals in Europe and North America with the skills necessary to implement effective OR strategies. The training leverages BCM Institute's extensive experience to support BSFIs in adhering to the BSP's operational resilience requirements.

In the Philippines, the BSP has introduced guidelines to ensure that BSFIs can effectively manage disruptions and maintain the delivery of essential financial services.

These guidelines are part of the BSP's broader initiative to promote operational resilience. Operational resilience allows financial institutions to withstand and recover from various shocks, including pandemics and cyberattacks. The commitment to operational resilience aligns with the BSP’s objective of fostering economic stability and growth in a rapidly changing financial landscape.

To comply with the BSP’s operational resilience guidelines, BSFIs must develop frameworks that address their unique operational complexities and risk profiles. This involves mapping critical operations, establishing disruption tolerances, and conducting regular tests to ensure crisis preparedness.

By adhering to these guidelines, BSFIs can enhance their resilience and contribute to a stable financial system, ultimately supporting the broader goals of economic sustainability and resilience in the face of modern challenges.

BSP Operational Resilience Guidelines

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

To learn more about the course and schedule, click the buttons below for the OR-3 Blended Learning OR-300 Operational Resilience Implementer course and the OR-5 Blended Learning OR-5000 Operational Resilience Expert Implementer course.

	If you have any questions, click to contact us.