On February 4, the IIF, ASIFMA, GFMA, BPI submitted a joint response to a Hong Kong Monetary Authority (HKMA) consultation on new supervisory guidelines related to Operational Resilience, as well as amendments to existing HKMA guidelines on Operational Risk Management and Business Continuity Planning. The response was informed by feedback from members of the IIF Steering Committee on Operational Resilience.
The response letter reiterates the importance of cross-jurisdictional alignment in regulatory standards and supervisory oversight on the topic of operational resilience, and welcomes the HKMA’s efforts to align with the Basel Committee on Banking Supervision’s (BCBS) global principles on this topic. We provided specific feedback in a few areas which could further refine and strengthen the framework for banks headquartered and/or operating in Hong Kong, including on:
- Terminology and Concepts used
- The ability of authorized institutions to adopt global operational resilience frameworks
- Clarity and consistency in relation to the discussion of Board and Senior Management responsibilities
- Timelines for implementation.