Operational Resilience – building a resilient treasury function

‘Operational Resilience’ is the subject of an important new Discussion Paper (DP1/18) issued by the Bank of England and Financial Conduct Authority, but which has important implications for treasurers of all types of businesses that are subject to, and need to manage, operational risk. Some background and guidance is set out below. Over the years since the financial crisis, a number of high-profile operational failures and cyber-attacks have led the Bank to believe that firms were operationally under-prepared for scenarios that could affect their ability to deliver vital business services. The authorities are concerned that operational risks could threaten not