Regulator warns against ‘happy endings’ for op risk wargames
Risk Live: Bankers say third parties should also be at the table when simulating crisis scenarios
Hypothetical tabletop exercises designed to assess a bank’s operational resilience during a risk event too often feature fairytale happy endings that limit their usefulness, a US regulator has warned.
“I find a lot of tabletop exercises always have a nice happy ending: it’s all good, everybody go home, here’s a list of protocol lessons we’ve learnt,” said Rinku Sinha, programme lead for cybersecurity policy in the supervision group of the Federal Reserve Bank of New York.
Richard Cooper
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