The Bangko Sentral ng Pilipinas (BSP) has approved new “Guidelines on Operational Resilience” for BSP-Supervised Financial Institutions (BSFIs), aimed at bolstering the sector’s ability to manage disruptions to critical operations amid growing risks from natural disasters and rapid technological change.
The guidelines are designed to help ensure that financial services remain available to the public even during extended business interruptions, such as those seen during the COVID-19 pandemic. They are part of the BSP’s broader efforts to ensure the stability of the financial system and support inclusive economic growth.
According to BSP Governor Eli M. Remolona, Jr., “The new guidelines are crucial given the increasing threats to business operations. They complement our previous efforts to strengthen the financial resilience of supervised institutions. Operational resilience ensures the overall safety and soundness of both individual institutions and the entire financial system.”
Key provisions in the guidelines require BSFIs to integrate operational resilience with their existing governance frameworks and risk management processes, including operational risk, business continuity, cyber resilience, third-party risk management, and recovery plans. The framework is aligned with global standards, including the “Principles for Operational Resilience” set by the Basel Committee on Banking Supervision.
BSFIs are required to identify their critical operations and set disruption tolerance levels, defining how much disruption they can withstand while maintaining essential services. They must ensure that these limits are adhered to in the event of disruptions.
The implementation of the guidelines will occur in phases to facilitate smooth adoption. BSFIs are required to submit a self-assessment questionnaire to the BSP within one year of the circular’s effectivity. This will help institutions assess their operational resilience and develop improvement plans.
The BSP emphasizes that these measures are essential in safeguarding the financial system against disruptions, ensuring that financial services continue to support the economy’s growth and stability.
