As the PRA's March 31, 2025 deadline for operational resilience standards takes effect, financial institutions are facing heightened pressure to demonstrate readiness.

David Arnold from First Abu Dhabi Bank UK emphasizes that while the guidance has been in development for years, the true test lies in thorough documentation, scenario testing, and the ability to identify and remediate vulnerabilities. He underlines that regulators expect meaningful effort—not perfection—and that proportionality based on an institution’s size and market impact is essential.

Beyond compliance, Arnold discusses the real-world implications of resilience, pointing to recent high-profile outages and their reputational fallout. He cautions that reputational damage can be far more enduring than operational disruptions themselves.

Looking forward, he stresses the need to embed resilience deeply within risk frameworks and day-to-day operations—especially in the face of emerging challenges like geopolitical shifts, supplier concentration, and increased reliance on cloud and AI.

Ultimately, he reminds us that the only constant is uncertainty, and resilience must evolve accordingly.