On October 30, 2020, the Federal Reserve System's Board of Governors (FRB), the Office of the Comptroller of the Currency (OCC), and the Federal Deposit Insurance Corporation (FDIC) issued an interagency paper titled Sound Practices to Strengthen Operational Resilience. Bringing together industry standards and existing regulations, the publication is directed at large, complex domestic banking organizations and advocates for a principles-based approach to enhance and bolster operational resilience.

The joint paper defines operational resilience as the "ability to deliver operations, including critical operations and core business lines, through a disruption from any hazard" and highlights the identification of critical operations and core business lines as an essential prerequisite to an effective operational resilience strategy. 

In our paper, Capco examines each of the joint paper's core principles and identifies how financial institutions can leverage these practices to strengthen operational resiliency.