Operational Resilience and Compliance Reporting

Blog Post: Strengthening Operational Resilience in 2025: Navigating New Reporting Requirements for Third-Party Risks

As the financial sector grows more interconnected and reliant on technology, the need for robust operational resilience has never been greater. The Prudential Regulation Authority’s (PRA) latest consultation paper (CP17/24) introduces new requirements for firms to enhance incident reporting and manage third-party risks effectively. Here’s what organisations need to know and how Secure Step Forward’s Compliance as a Service (CaaS) can help.

What’s New in Operational Resilience Reporting?

The PRA’s proposals aim to standardise and strengthen how firms report operational incidents and third-party arrangements. Key updates include:

Phased Incident Reporting: Firms must provide initial, intermediate, and final reports for operational incidents that meet PRA thresholds.
Material Third-Party Reporting: Expanded reporting to cover outsourcing and non-outsourcing arrangements that pose material risks.
Global Alignment: The requirements align with international frameworks, such as the EU’s Digital Operational Resilience Act (DORA) and the Financial Stability Board’s FIRE initiative.

These updates ensure consistent, high-quality data collection to monitor systemic risks and enhance financial sector resilience.

Why Operational Resilience Matters in 2025

Operational resilience is one of the top compliance trends in 2025, as highlighted in our broader overview of compliance trends this year. This reinforces the critical importance of preparing for evolving regulations and systemic risks.

Operational disruptions, whether caused by cyberattacks, IT failures, or third-party dependencies, can have far-reaching consequences for financial institutions and their stakeholders. Key considerations include:

Systemic Risks: Disruptions at a critical third-party provider can cascade across the financial ecosystem.
Regulatory Compliance: Firms must demonstrate their ability to effectively identify, manage, and report incidents.
Customer Trust: Operational resilience directly impacts clients' trust in financial institutions.

How Compliance as a Service (CaaS) Can Help

Navigating these new requirements can be complex, but Secure Step Forward’s Compliance as a Service (CaaS) simplifies the process. Here’s how we can support your organisation:

Streamlined Reporting: Develop and implement processes for phased incident reporting and third-party notifications.
Resilience Testing: Conduct operational resilience testing to identify vulnerabilities and improve readiness.
Continuous Compliance: Monitor evolving requirements and ensure your organisation stays ahead of regulatory changes.

Our tailored solutions address the unique challenges of the financial sector while aligning with global frameworks like DORA and FIRE.

Practical Next Steps for Organisations

To prepare for these new requirements, organisations should:

Assess Current Processes: Identify gaps in incident reporting and third-party risk management.
Develop a Compliance Roadmap: Align internal processes with the PRA’s thresholds and expectations.
Partner with Experts: Leverage external support to simplify compliance and enhance operational resilience.

With Secure Step Forward’s expertise, navigating the complexities of operational resilience becomes manageable and effective.

Ready to Strengthen Your Operational Resilience?

Contact us today to explore tailored solutions for incident reporting and third-party risk management. Together, we can ensure your organisation is prepared for 2025 and beyond.

Ready to strengthen your compliance strategy?

Secure Start: Build your compliance foundation with tailored assessments and actionable roadmaps.

Our Step Up service is tailored for organisations ready to implement compliance frameworks and prepare for audits or certifications.

For organisations seeking to future-proof their compliance efforts, Step Forward provides proactive, managed compliance services.

Tailored Compliance. Our solutions are designed flexibly to address the unique needs and challenges of sectors such as telecommunications, healthcare, financial services, technology, and legal services.

Our advanced solutions are designed to address critical challenges such as integrated risk management, incident response, vendor risks, and ESG reporting. With our expertise and innovative tools, you’ll enhance your compliance efforts, reduce risks, and achieve better business outcomes.