“It’s a work in progress because everybody is trying to learn on the job.”
Recovery and resolution is an evolving process for the banking and financial services industry. Due to varied regulatory implementation speeds, different jurisdictions have taken different planning actions.
Recovery plans, established for firms to use a series of predefined options to pull back from severe weaknesses, are more developed than resolution plans, especially in Europe and North America. For example, 64% have completed draft recovery plans, which on average take six months to one year to complete.
Those firms that have completed recovery plans did so within one year
CROs and risk teams are the main drivers of recovery and resolution planning. Given the factors of deadline uncertainty, variation in plan development and execution across the borders, many believe the recovery process is a beneficial management exercise.
Top challenges to recovery and resolution planning
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