On 20 Jan 2025, the HKMA shared industry-observed good practices for mapping interdependencies and scenario testing under SPM module OR-2 to support AIs in achieving operational resilience compliance by May 2026. The guidance, derived from industry engagements and a December 2024 session, encourages AIs to adopt these practices tailored to their risk profiles. The HKMA confirmed all AIs have developed frameworks and are progressing toward the May 2026 deadline.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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Introduction
On 20 Jan 2025, the Hong Kong Monetary Authority (HKMA) issued a communication sharing observations of good industry practices for implementing the operational resilience framework under Supervisory Policy Manual (SPM) module OR-2, with the aim of supporting Authorized Institutions (AIs) in achieving full compliance by May 2026.
Implementation Progress
The HKMA noted that all AIs have developed operational resilience frameworks and are progressing toward full compliance with OR-2 requirements by May 2026. Major retail banks have incorporated supervisory feedback to tighten disruption tolerance limits for critical operations, enhancing resilience and recovery capabilities for operations vital to AIs, customers, and the banking sector.
Good Practices Guidance
The HKMA shared insights from industry engagements and a December 2024 co-hosted session with the Hong Kong Association of Banks, summarised in the Annex. These good practices cover mapping interdependencies and scenario testing to identify vulnerabilities and dependencies of critical operations, enabling effective remediation. AIs are encouraged to adopt these practices commensurate with their operational scale, scope, and risk profiles to support the second critical implementation stage.
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