PRA flags current operational risk and resilience, cyber security and outsourcing issues for credit unions

United Kingdom

The PRA has reminded credit unions of its expectations regarding operational risk and resilience, cyber security and outsourcing issues in the published findings of its 2019 annual assessment of the credit union sector. These are hot topics in the finance industry as a whole, so it is no surprise that the PRA has flagged these issues as being relevant to credit unions.

Key take away messages that apply across the board are the importance of continuity of business services through disruptions arising from operational or cyber incidents, and the importance of keeping outsourcing arrangements up to date and in line with current regulatory requirements, including ensuring that there is an ability to exit outsourcing arrangements where necessary without detriment to the continuity and quality of the provision of services to clients. The relevant PRA comments can be accessed here