## PHILIPPINES - Developing a Regulatory and Supervisory Framework for Operational Resilience

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**Canonical URL:** [PHILIPPINES - Developing a Regulatory and Supervisory Framework for Operational Resilience](https://www.imf.org/-/media/files/publications/hls/2023/english/hlsea2023004.pdf)

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### Background
- The Bangko Sentral ng Pilipinas requested technical assistance on developing a regulatory and supervisory framework for operational resilience.
- The Monetary and Capital Markets department delivered a technical assistance mission during November 28 to December 2, 2022.
- The mission included a focused training program to augment supervisors’ capacity in drafting a regulation on operational resilience.

### Summary of findings
- The BSP is keen to implement the Basel Committee on Banking Supervision’s Principles for Operational Resilience and has constituted a Technical Working Group to draft the regulation and formulate a supervisory approach.
- The BSP has issued regulations on various components relevant to operational resilience, but such regulations need clarity and emphasis on the operational resilience principles which are separate and distinct from operational risk management and business continuity.
- Being an island nation facing severe climate-related challenges, the business continuity preparedness of the jurisdiction is perceived to be strong, thereby reducing the potential gap between the extant regulatory framework and the required regulations to implement operational resilience principles.
- Capacity of the supervisors in drafting a regulation on this topic of emerging interest was augmented by the focused training program.

### Summary of recommendations
- Identify and articulate the case for a BSP policy initiative on the topic of operational resilience.
- Identify and address regulatory gaps in existing regulations on:
  - corporate governance,
  - information and communication technology/cyber risk,
  - outsourcing,
  - business continuity management, and
  - operational risk management
  from an operational resilience perspective based on the feedback and the inputs provided.
- Choose the best suitable option for implementing operational resilience principles based on the various inputs provided by the mission considering the scope, applicability, timelines for implementation, and proportionality aspects.
- Prepare the draft regulation for implementing operational resilience principles based on the inputs provided during the training program and the feedback provided by the mission.
- Determine potential severe but plausible scenarios for Philippines considering:
  - (i) already strong Business Continuity Plan preparedness amongst banks in the face of the unique geographical characteristics, and
  - (ii) the unique needs of the jurisdiction.

*International Monetary Fund — Summary Technical Assistance Report HLS/23/04, Monetary and Capital Markets Department*

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_Source: https://www.imf.org/-/media/files/publications/hls/2023/english/hlsea2023004.pdf_