The PRA has published 2 policy statements:
- PS6/21 Operational resilience: Impact tolerances for important business services
- PS7/21 Outsourcing and third party risk management
PS6/21 provides feedback on CP 29/19 Operational resilience: Impact tolerances for important business services and contains the PRA’s final policy, as follows:
- a new Operational Resilience Parts of the PRA Rulebook;
- amendments to the Group Supervision Part of the PRA Rulebook;
- a new Supervisory Statement (SS) 1/21 ‘Operational resilience: Impact tolerances for important business services’; and
- a new Statement of Policy (SoP) ‘Operational resilience’.
SS 1/21 sets out the PRA's expectations for the operational resilience of firms’ important business services, for which they are required to set impact tolerances. The policy objective is to improve the resilience of both firms and the wider financial sector to operational disruptions.
OAC's insurance clients are deemed low risk categories and not expected to impact materially on the wider financial sector and UK economy. Therefore considerations around Financial Stability are less important. However, consideration will need to be given to a firm’s safety and soundness, and the appropriate degree of policyholder protection.
PS7/21 provides feedback CP 30/19 ‘Outsourcing and third party risk management’ and contains the PRA’s final Supervisory Statement (SS) 2/21 ‘Outsourcing and third party risk management’. This is intended to complement expectations on operational resilience.
Both supervisory statements are effective from 31 March 2022.
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