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FRM Part II · FRM Exam Part II · Introduction to Operational Risk and Resilience

After a ransomware incident disabled a bank's loan servicing platform for two days, the firm conducts a lessons-learned review. Which action best reflects the operational resilience principle of learning and adapting?

The best action is to feed the incident's findings into updated scenarios, dependency maps, tolerances and investment priorities, and report them to senior management. Simply logging the loss, replacing staff without analysis or suspending testing does not improve the firm's ability to withstand future disruption.

  1. ARecord the incident in the loss database and take no further action because the loss was small
  2. BFeed the findings into updated scenarios, dependency maps, tolerances and investment priorities, and report them to senior managementCorrect
  3. CReplace the incident response team without analysing the cause
  4. DSuspend scenario testing until the platform is rebuilt

Explanation

Learning and adapting means using actual incidents and tests to improve the resilience framework: refresh scenarios, correct mapping, reassess tolerances and prioritise remediation, with reporting to senior management. Merely logging the loss or changing staff without analysis does not improve resilience, and suspending testing removes a key feedback loop.

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