The Central Bank of Ireland has issued its 2024 Regulatory & Supervisory Outlook Report which sets out its priorities for the next two years. The Central Bank regulates more than 12,000 entities across a range of sectors providing financial services in Ireland and overseas.
The Regulatory & Supervisory Outlook report sets out the Central Bank’s perspective on the key trends and risks that are shaping the financial sector operating landscape and its consequent regulatory and supervisory priorities.
Of these priorities, operational resilience is a key area, but the Central Bank calls out the need to consider financial and operational resilience in a holistic way as one of the key areas for improvement. This is identified in a section of the report looking at operating framework deficiencies and is important because of the interdependencies between operational and financial risks.
The Central Bank is also looking for a sustained improvement within boards and leadership teams when it comes to risk and operational resilience. The Central Bank expects entities to:
- Demonstrate appropriate understanding, ownership and oversight of business performance, business model evolution and key risks;
- Ensure strategic decisions are proactively aligned with organizational capability, risk appetite, financial resources, and the market environment; and
- Consider consumers as the heart of the business and recognise that all firms have a role in protecting the integrity of the financial system.
