As businesses grow and extend their operations, they are subject to large volumes of regulations that often become intricate due to overlapping jurisdictions from multiple authorities. Implementing appropriate measures, policies, and processes to manage their legal and mandatory adherence helps them stay secure and compliant.
The pandemic changed the way banks looked at their Business Continuity Plan (BCP) and BCM(Business Continuity Management). Strategies and plans that once accounted for everything from natural disasters, human error, cyber risks, insider threats, downtime, and operational setbacks had to now factor in the unpredictable X in their risk plans.
The new normal saw the banks overhauling their operations through complete process automation and digital acceleration. There was a constant need to prioritize and coordinate solutions, to manage and restore operations and access in situations that suddenly cropped up, with a flexible business continuity plan to prevent loss of customers, revenue, and new business opportunities.
Better normal days saw new approaches falling into place.
Economies opened up.
But it was not business as usual because digital processes brought new threats.
If the integrated and distributed hybrid ecosystems were vulnerable to cyber threats, operational risks threatened the very integrity and existence of banks.
There was an urgent need for a Business Continuity Plan and its management that aligned with a comprehensive Governance, Risk, and Compliance Program to deliver resilience in an evolving landscape and a risk-aware corporate culture.
Defining the future of business continuity, the GRC +BCP model helped banks stay agile and adapt to the changing threat landscape with robust business resilience capabilities, regular assessment and control mechanisms.
The value-additions delivered included:
Quick and informed decision- making by providing relevant information from a single source of truth matched to the situation in the prescribed format for making decisions at the right time.
Protection of business assets by implementing processes and controls to safeguard business assets and data from threats and hacking..
Up-to-date regulation compliance through continuous adoption of controls reflecting regulatory changes, is made easy with user- friendly, intuitive GRC systems
Cost savings and revenue protection by automating and streamlining business continuity processes to comply with operational, legal and regulatory requirements.
Integrated risk mapping from a single source of truth to ensure that no potential threat has been overlooked.
Business continuity and GRC are ongoing processes that demand consistent adaptation in the face of dynamic business environments. Together, they ensure the long-term sustainability of business operations and financial solidity in the presence of any potential risks.
EnGRC is an automated, modular, and configurable governance, risk, and compliance (GRC) solution that seamlessly integrates with your organization’s objectives and business continuity plans.
Regular internal controls are required to be performed to ensure that the BCP is kept up to date and that all the key individuals and departments involved know what they need to do if such an event occurs. These controls can be scheduled and assigned with automated workflows in EnGRC including alerts and reminders even when not logged into the system. All the instructions and guidance for the BCP can be included in the tasks.
With end-to-end solutions to manage your enterprise risk, EnGRC helps you create a culture of risk awareness and value to build trust with customers and partners.
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On April 30, 2024, the Reserve Bank of India (RBI) issued a crucial Guidance Note on Operational Risk Management and Operational Resilience (RBI/2024-25/31 DOR.ORG.REC.21/14.10.001/2024-25). This guidance aims to significantly enhance the effectiveness of operational risk management of Regulated Entities (REs) and bolster their operational resilience amidst the complex, interconnected, and dynamic environment of the financial system.
The primary objectives of the RBI’s guidance are two fold:
Operational risk management is a critical component of an RE’s risk management framework. It reflects the effectiveness of the Board of Directors and Senior Management in overseeing the institution’s portfolio of products, services, activities, processes, and systems. Effective operational risk management involves:
Operational resilience is the ability of an RE to continue delivering essential services in the face of disruptions. This requires a comprehensive risk assessment policy that includes:
The RBI guidance mandates that all REs must integrate these risks into their assessment frameworks and devise appropriate risk mitigation strategies to ensure operational resilience.
The RBI emphasizes a structured approach involving three lines of defence:
The RBI identifies three pillars supporting a holistic approach to managing operational risk and resilience:
EnGRC offers out-of-the-box functions to help REs adhere to the RBI guidance. Its modules leverage advanced technologies like blockchain, machine learning (ML), and artificial intelligence (AI) to deliver robust risk management and operational resilience. Key features include:
Robust risk management and operational resilience are critical for the long-term success of REs. By adhering to the RBI’s guidance and leveraging solutions like EnGRC, organizations can effectively manage potential risks, enhance their reputation, and maintain a competitive advantage in the marketplace. For more information on how EnGRC can support your risk management needs, visit EnGRC – Enterprise Governance, Risk & Compliance (GRC) Solution.
