Resilience and Resolution: Difference between pages

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1. ''Behavioural skills.''
1. ''Decision making.''


The ability of individuals to recover from difficulties or to withstand external pressures.
A formal decision of a body such as a board of directors, recorded in writing.




:<span style="color:#4B0082">'''''Practise resilience'''''</span>
2. <i>Bank resolution</i>.
:Resilience is the best tool for when your environment changes, and this is a skill that can be learned.
:Six ways to practise personal resilience:


:*Attitude – understand your motivational state and how to change it
The special process of resolving the problem of the actual or threatened insolvency of financial firms.
:*Responses to stress – awareness enables control
:*Commitment – what are your motivations?
:*Control – understand what can and can’t be controlled in your environment
:*Relationships – maintain clear and consistent communication
:*Health – mental and physical


:Four ways to practise personal resilience during COVID-19:


:*Maintain boundaries between home and work especially when working from home
The speed with which value destruction occurs in a failing financial firm means that normal corporate insolvency processes and liquidation are inappropriate for such firms.
:*Be transparent
:*Manage your positivity
:*Look out for verbal and non-verbal clues in your work relationships


As in normal insolvency, losses will be expected for some creditors.


:''Association of Corporate Treasurers, Mental wellbeing and top tips for thinking in a resilient way, May 2020''


Resolution is the orderly failure of a firm, under the control of the resolution authority.


2. ''Risk management - organisations and systems - finance.''


The ability of organisations or entire systems to recover from major problems, or to withstand adverse external conditions.
Contrast with ‘[[recovery]]’ in which a financial firm facing difficulties is returned to acceptable financial health without imposing losses on the distressed firm's creditors.  


Examples of major problems include climate change, natural catastrophes, cyber-risk, financial market shocks and stresses.




:<span style="color:#4B0082">'''''Rolls-Royce bolsters financial resilience'''''</span>
3. <i>Non-financial firms</i>.


:"With the aviation sector decimated by COVID-19 and an entire staff base working from home, Rolls-Royce, which generates around 50% of its annual revenue from civil aerospace, undertook swift action to conserve cash and bolster liquidity through a series of complex transactions in the second half of 2020.  
Similar processes for resolving the problem of actual or threatened insolvency of a non-financial firm.  


:The deals stemmed from overarching aims to:


::1. provide financial resilience and strong liquidity headroom to see the business through any severe but plausible downside scenarios on the recovery in air transport..."
<span style="color:#4B0082">'''''Reverse takeover'''''</span>


:''ACT Deals of the Year Awards 2020 - Rolls Royce''
:"I joined Gala Coral Group, which was a high-leveraged private equity (PE) business.


:This was my first group treasurer position supporting the resolution of a defaulted propco structure, the disposal of the Gala Bingo business and PE exit scenarios, including the eventual reverse takeover of Ladbrokes."


==See also==
:''Adam Richford FCA FCT, Group Treasurer, Renewi, The Treasurer, August 2018, p17.''
* [[ACT Competency Framework]]
* [[AMCT]]
* [[Black swan]]
* [[Business skills]]
* [[Call for Action on Adaptation and Resilience]]
* [[Capital Conservation Buffer]]
* [[Climate change: testing the resilience of corporates’ creditworthiness to natural catastrophes]]
* [[Commercial drive and organisation]]
* [[COVID-19]]
* [[Cyber resilience]]
* [[Emotional intelligence]]
* [[Equifinality]]
* [[Event risk]]
* [[Executive coaching]]
* [[Financial Policy Committee]]
* [[FOMO]]
* [[Growth mindset]]
* [[Headroom]]
* [[Influencing skills]]
* [[Liquidity]]
* [[Mind map]]
* [[Self management and accountability]]
* [[Self-regulation]]
* [[Silo]]
* [[SMART]]
* [[TCFD Recommendations]]
* [[Technical skills]]
* [[Wellbeing]]
* [[Working effectively with others]]




==External link==
== See also ==
* [[Bailin]]
* [[Board resolution]]
* [[Contagion]]
* [[Default]]
* [[Directive]]
* [[Exit]]
* [[Financial stability]]
* [[Insolvency]]
* [[Key Attributes]]
* [[Leverage]]
* [[Liquidation and Payout]]
* [[OLA]]
* [[Private equity]]
* [[Purchase and Assumption]]
* [[Recovery]]
* [[Resolution Authority]]
* [[Resolution plan]]
* [[Resolution weekend]]
* [[Reverse takeover]]


*[https://www.treasurers.org/hub/treasurer-magazine/how-read-your-own-emotions-and-develop-resilience How to read your own emotions and develop resilience, The Treasurer, 2019]


[[Category:Commercial_drive_and_organisation]]
=== Other links ===
[[Category:Influencing]]
[https://www.bankofengland.co.uk/financial-stability/resolution The Bank of England's approach to resolution]
[[Category:Self_management_and_accountability]]
 
[[Category:Working_effectively_with_others]]
[[Category:Corporate_financial_management]]
[[Category:Planning_and_projects]]
[[Category:Compliance_and_audit]]

Revision as of 14:35, 25 March 2021

1. Decision making.

A formal decision of a body such as a board of directors, recorded in writing.


2. Bank resolution.

The special process of resolving the problem of the actual or threatened insolvency of financial firms.


The speed with which value destruction occurs in a failing financial firm means that normal corporate insolvency processes and liquidation are inappropriate for such firms.

As in normal insolvency, losses will be expected for some creditors.


Resolution is the orderly failure of a firm, under the control of the resolution authority.


Contrast with ‘recovery’ in which a financial firm facing difficulties is returned to acceptable financial health without imposing losses on the distressed firm's creditors.


3. Non-financial firms.

Similar processes for resolving the problem of actual or threatened insolvency of a non-financial firm.


Reverse takeover

"I joined Gala Coral Group, which was a high-leveraged private equity (PE) business.
This was my first group treasurer position supporting the resolution of a defaulted propco structure, the disposal of the Gala Bingo business and PE exit scenarios, including the eventual reverse takeover of Ladbrokes."
Adam Richford FCA FCT, Group Treasurer, Renewi, The Treasurer, August 2018, p17.


See also


Other links

The Bank of England's approach to resolution

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