Impact tolerance: Difference between revisions
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(Create page - source - Bank of England - FCA - https://www.bankofengland.co.uk/-/media/boe/files/prudential-regulation/consultation-paper/2019/building-operational-resilience-impact-tolerances-for-important-business-services.pdf) |
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''Risk management - regulation - supervision - UK Prudential Regulation Authority (PRA) - Financial Conduct Authority (FCA).'' | ''Risk management - regulation - supervision - UK Prudential Regulation Authority (PRA) - Financial Conduct Authority (FCA).'' | ||
The maximum tolerable level of disruption to an important business service, as measured by a length of time in addition to any other relevant metrics. | The maximum tolerable level of disruption to an important business service, as measured by a length of time - in addition to any other relevant metrics. | ||
''(Source - Financial Conduct Authority Handbook.)'' | The maximum impact tolerance level reflects the point at which any further disruption to the important business service could: | ||
:(1) cause intolerable harm to any one or more of the firm’s clients, or | |||
:(2) pose a risk to the soundness, stability or resilience of the UK financial system, | |||
:(3) or to the orderly operation of the financial markets. | |||
:''(Source - Financial Conduct Authority Handbook.)'' | |||
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* [[Impact]] | * [[Impact]] | ||
* [[Metric]] | * [[Metric]] | ||
* [[Operational resilience]] | |||
* [[PRA Supervisory Statement 1/21 (SS1/21)]] | * [[PRA Supervisory Statement 1/21 (SS1/21)]] | ||
* [[Prudential Regulation Authority]] (PRA) | * [[Prudential Regulation Authority]] (PRA) | ||
| Line 44: | Line 51: | ||
* [[Risk tolerance]] | * [[Risk tolerance]] | ||
* [[Supervision]] | * [[Supervision]] | ||
* [[Sustainability]] | |||
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*[https://www.bankofengland.co.uk/-/media/boe/files/prudential-regulation/consultation-paper/2019/building-operational-resilience-impact-tolerances-for-important-business-services.pdf Building operational resilience: Impact tolerances for important business services - Bank of England - Financial Conduct Authority] | *[https://www.bankofengland.co.uk/-/media/boe/files/prudential-regulation/consultation-paper/2019/building-operational-resilience-impact-tolerances-for-important-business-services.pdf Building operational resilience: Impact tolerances for important business services - Bank of England - Financial Conduct Authority] | ||
*[https://www.handbook.fca.org.uk/handbook/glossary/G3506i.html?date=2022-03-31 Financial Conduct Authority Handbook - Impact tolerance] | *[https://www.handbook.fca.org.uk/handbook/glossary/G3506i.html?date=2022-03-31 Financial Conduct Authority Handbook - Impact tolerance] | ||
[[Category:Accounting,_tax_and_regulation]] | [[Category:Accounting,_tax_and_regulation]] | ||
[[Category:Financial_products_and_markets]] | [[Category:Financial_products_and_markets]] | ||
[[Category:Risk_frameworks]] | [[Category:Risk_frameworks]] | ||
Latest revision as of 12:07, 24 July 2024
Risk management - regulation - supervision - UK Prudential Regulation Authority (PRA) - Financial Conduct Authority (FCA).
The maximum tolerable level of disruption to an important business service, as measured by a length of time - in addition to any other relevant metrics.
The maximum impact tolerance level reflects the point at which any further disruption to the important business service could:
- (1) cause intolerable harm to any one or more of the firm’s clients, or
- (2) pose a risk to the soundness, stability or resilience of the UK financial system,
- (3) or to the orderly operation of the financial markets.
- (Source - Financial Conduct Authority Handbook.)
- Setting impact tolerances - Bank of England - Financial Conduct Authority
- "Firms and FMIs should identify specific metrics for the maximum tolerable level of disruption.
- These should be measures that identify: harm to consumers or market participants; harm to market integrity; threat to policyholder protection; safety and soundness; or financial stability.
- Such metrics could measure the extent of disruption, for example by including the maximum value of disruption, number of transactions, or the number of customers affected.
- All impact tolerances should include the maximum tolerable duration of such disruption, taking into account the criticality of the important business service.
- However, a metric based on time alone may be insufficient."
- Building operational resilience: Impact tolerances for important business services - Bank of England - Financial Conduct Authority.
See also
- Bank of England
- Business impact analysis
- Enterprise risk management
- Financial Conduct Authority (FCA)
- Financial Market Infrastructure (FMI)
- Financial markets
- Firm
- Guide to risk management
- Impact
- Metric
- Operational resilience
- PRA Supervisory Statement 1/21 (SS1/21)
- Prudential Regulation Authority (PRA)
- Regulation
- Resilience
- Risk appetite
- Risk management
- Risk policy
- Risk tolerance
- Supervision
- Sustainability
