Operational resilience: how much to learn from Covid-19? – Crescendo Advisors LTD.
One of the questions in the mind of many CROs, COOs and NEDs is how much the industry has learnt from the response to Covid-19. Crescendo Advisors survey of insurers’ lessons learnt highlighted that the industry has learnt a fair amount. We have written a separate article about five practical lessons for the implementation of operation resilience for financial services (available here).
But is there more to learn? To what extent can the industry claim ‘mission accomplished’ because continuity of service has been maintained during Covid-19? These are important questions, and the answer will shape the resources available to implement operational resilience.
To consider these questions, think about the two main features of the challenge that Covid-19 represented for financial services:
- it was characterised by a challenge of access to offices, rather than a failure of IT system(s); and
- it was a generalised issue.
If you think of these two features, you can easily develop a grid of operational resilience threats – see below with some examples:
Covid-19 represents only one of various types of operational resilience threat for financial services. It also hints that a different response might be needed to mitigate customer detriment such as remote access to IT systems in the case of Covid-19 and quickly restoring IT systems that have failed.
So Covid-19 has allowed a good amount of testing of vulnerabilities. Some of the lessons learnt, e.g. investing in crisis management, are likely to be transferable across the categories in the table. However, maintaining an appropriate degree of resilience will require a wider consideration of the potential threats and responses.
This post was posted initially in Crescendo Advisors’ blog.
Crescendo Advisors (www.crescendo-erm.com) is a boutique risk management consultancy. They would be happy to share an overview of the findings from the Covid-19 lessons survey. They can also support your efforts to both learn lessons from Covid-19 using the tools they have developed for this survey, and implement the regulatory requirements for operational resilience.
- The Camelot Network recently turned 3 years old, read about our journey here
- Get to know some of our other experts who have been showcased
- Read what clients say about the value they get from our consultants’ advice
- If you’d like to network with our consultants, register for our next big event
To find out more about our members and how we can create your perfect solution, contact David Clamp: