1.11 A key priority for the PRA is to improve the operational resilience of firms and protect the wider financial sector from the impact of operational disruptions. As the financial sector becomes increasingly interconnected, complex and dynamic, strengthening operational resilience enables firms and the financial sector to more effectively deal with risks to prevent, adapt, respond to, recover, and learn from operational disruptions.

1.12 Over recent years, the PRA has undertaken a series of policy development initiatives to put in place a stronger regulatory framework to promote operational resilience. The proposals set out in this CP form part of that programme. The proposed policy would allow the PRA to collect good quality, consistent data focusing on operational incidents and material third-party arrangements which pose the most risk to firms and the financial sector. The proposals set out in this CP aim to enhance operational resilience by helping the PRA gain better oversight of these risks and provide more meaningful feedback to firms and the financial sector to help address vulnerabilities and prepare for emerging risks.