Acting Comptroller of the Currency Michael Hsu discussed the importance of operational resiliency in remarks at the Institute of International Bankers Annual Washington Conference.
In his remarks, Hsu discussed the growing risks of disruptions that may impede the provision of financial services or adversely impact systems. He also discussed considerations to strengthen operational resiliency requirements for large banks with critical operations, including third party service providers.
“As banking services continue to grow and as technology and third parties play a greater role in the provision of those services, the threat surface for disruptions is expanding. Notably, the impacts of most concern here are not financial, i.e., this is not a problem that capital or liquidity can solve,” he said in the remarks. “Ensuring that critical operations and banking services can withstand or recover from disruptive events requires good planning, prudent investment, well-designed systems, and regular testing.”
He also stated: “As the threat surface for disruptions expands, and as authorities in other jurisdictions begin implementing their rules to ensure operational resilience, we are assessing and working with our interagency peers to develop the right approach here in the US.”