The Bank of England, in collaboration with UK Finance, HM Treasury, and the Financial Conduct Authority, has successfully completed its latest UK-wide simulation exercise, SIMEX 24. The initiative aimed to test the UK financial sector’s ability to respond to a large-scale infrastructure failure requiring a complete shutdown and restart of the industry.
Developed by the Cross Market Operational Resilience Group (CMORG)—a strategic partnership established in 2015 by the Bank of England—the simulation is part of an ongoing programme focused on enhancing the sector’s operational resilience against the most challenging risks, including those identified in the UK Government’s National Risk Register.
The exercise strengthens the sector’s collective response to disruptive events, ensuring that firms and financial authorities can act swiftly to protect the UK’s financial system and its customers. This is crucial in maintaining a stable and reliable financial environment.
Sam Woods, Deputy Governor of Prudential Regulation and CEO of the Prudential Regulation Authority, emphasized the importance of preparing for a wide range of risks: “SIMEX provides unique opportunities for the banking sector and authorities to practice defending services essential to the economy.”
David Postings, CEO of UK Finance, added: “A resilient financial sector is critical to the UK economy. The sector-wide exercise ensures that we can respond effectively to incidents and safeguard the financial system.”
CMORG plays a pivotal role in identifying systemic risks, developing sector-wide mitigation strategies, and facilitating knowledge sharing. Its Sector Response Framework (SRF), tested during SIMEX, ensures the financial sector is prepared for coordinated responses to severe disruptions.
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