Operational resilience is not the same as business continuity planning -- and understanding that distinction matters for insurance executives.
Traditional business continuity plans focus on recovering from disruptions. Operational resilience asks a harder question: which functions must never be interrupted, even during a significant event, and what would it take to guarantee that? Claims payment, policyholder communication, and regulatory reporting tend to be the non-negotiable functions.
Cyber incidents are the most frequent stress test of operational resilience in financial services. Carriers that have mapped their critical function dependencies -- including third-party vendors and cloud service providers -- are better able to contain the impact of an incident and communicate transparently with regulators and policyholders.
Regulators in multiple jurisdictions are moving from recommendation to requirement on operational resilience. Carriers that have been proactive will find the compliance transition significantly easier than those responding to new rules for the first time.
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