What is Operational Resilience?
Operational Resilience refers to an organization’s ability to continue functioning in the face of disruption. Considerations for Operational Resilience are multi-faceted. They include, but are not limited to, processes, capabilities, behaviors and systems. For example, Operational Resilience is the capability of an organization to still provide its products in the face of unforeseen supply chain disruptions. Equally, the ability for a company to move their data on-premises while their primary cloud service provider suffered a major outage would factor into that company’s level of Operational Resilience.
What is Operational Resilience regulation?
In heavily regulated industries, such as Financial Services, Operational Resilience is becoming the biggest risk factor in the eyes of regulatory bodies. Principally they are concerned about institutions and third-party providers – particularly cloud service providers – becoming increasingly intertwined. As more and more digitalization projects succeed, and more key processes move to the cloud, some regulators even consider the risk to be systemic – a risk so large that it could cause the majority of financial services operators to fail at once. Regulators are increasingly concerned about firms being locked in to cloud service providers without a credible exit or business continuity plan, particularly under stressed exit.
Teradata take on Operational Resilience regulation
Financial institutions must shift their thinking to future-proof their organization. The regulator could force them to either massively increase redundancy back-up spend, or introduce inefficiencies by diversifying cloud suppliers. Alternatively, hybrid and multi-cloud infrastructure can grant the ability to shift data and move workloads between multiple cloud providers, and even back on-premises if necessary.