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Increased focus on operational resilience
Journal of Securities Operations & Custody,
14
(4),
319-328
(2022)
Abstract
A wide range of recent well-publicised risks to operational continuity, including but not limited to cyber threats, combined with seemingly more frequent natural disasters and extreme weather-related events have contributed to a broad, heightened interest in operational resilience, which features as an area of considerable focus for corporates and financial institutions, as well as the global regulatory community. This paper discusses the key principles of a strong operational risk framework that remain relevant even as technology and tools advance. These principles include a deep understanding of the businesses and activities that are of greatest operational importance and the specific resources required to execute them, the development and maintenance of business continuity and crisis management plans and the performance of robust testing that is designed to illuminate opportunities for improvement. Recent developments in the global regulatory focus and approach to operational resilience are discussed, including the important differences between regulators and the lack of a single set of universal rules. While this creates challenges for global firms, the authors discuss how the global Custody business and its related ecosystem has been demonstrating its resilience throughout the COVID-19 pandemic, highlighting the interdependency of the participants on each others' resiliency.
Keywords: resilience; operational resilience; business continuity; regulatory; cyber
The full article is available to subscribers to the journal.
Author's Biography
Annik Bosschaerts is Chief Operating Officer of The Bank of New York Mellon's European Bank, The Bank of New York Mellon, headquartered in Brussels, Belgium. She is a member of the Executive Committee and serves as an executive Board member of the European Bank. Her main responsibilities include Technology, Clearing and Collateral Management Operations and the maintenance of the European Bank's Governance frameworks. Annik has more than 30 years of multicultural leadership within the financial services industry. Prior to assuming the role of Chief Operating Officer in 2012, she was Global Head of Operations in the Global Clearing and Collateral Management division for 14 years. Annik also held additional responsibilities as a member of The Bank of New York Mellon's Brussels Branch Management Committee, becoming General Manager in 2009. Between 1990 and 1999, Annik held various operational and managerial roles in areas including local and global custody. She started her career at JP Morgan in 1989 and joined The Bank of New York when it acquired JP Morgan's global custody business in 1996. Annik is a vocal advocate for diversity, equity and inclusion in the industry and is a sponsor of Women in Finance in Belgium in addition to supporting a number of The Bank of New York Mellon's own inclusion initiatives. She holds diplomas in Banking, Stock Exchange and Finance from the Provincial Institute in Ghent and in Modern Languages from the Technical Institute in Ghent.
Gloria Lio is a managing director in the Operations division at The Bank of New York Mellon, responsible for Global Securities Operations and the Custody Service Expert (CSE) organisation. In her current position, Global Securities Operations provides a comprehensive range of custody specific services on behalf of Investment Services, comprising of Trade Capture, Settlement and Portfolio Services, which includes Corporate Actions, Income, Proxy and Class Actions. The CSE Team, which jointly reports to both client service and operations, delivers a best-in-class integrated service with all teams working in a follow-the-sun model. Gloria joined The Bank of New York Mellon in February 2016. Prior to that, she was Global Head of the Custody Business Unit in Securities Operations and Americas Regional Head of Securities Operations for Goldman Sachs. Gloria joined Goldman Sachs in 1996 and held various roles within Securities Operations in the US and Asia and was named Managing Director in 2011. Gloria attended Pace University where she earned a BBA in Finance. Gloria serves as a member of the Board of Directors for The Bank of New York Mellon Trust Company of Illinois and CIBC Mellon. In addition, she represents The Bank of New York Mellon on industry committees including the Broadridge Independent Steering Committee and the DTCC Operations Advisory Committee. Gloria sponsors the IMPACT Asian Leadership Forum at The Bank of New York Mellon.
