Development of a recovery playbook to aid financial stress management
A tier one global bank was creating its Group Recovery Plan (GRP) as mandated by the Prudential Regulation Authority (PRA). A necessary component of the GRP was a Playbook that could be actionable and act as a reference guide for the bank’s executives and board during a financial stress event. The client needed support with the creation of the Playbook, ensuring it covered all the relevant topics in the GRP and that it addressed issues raised previously by the PRA and Internal Audit.
For successful completion of the Playbook, our team of experts conducted the following activities:
- Consolidation of the governance, decision-making processes, communications strategy, and documentation and recovery options that are needed in a stress scenario;
- Followed and addressed the guidance provided by the PRA in its supervisory statement related to recovery planning;
- Sourced information from the relevant workstreams and stakeholders (internal and external) tasked with writing the GRP;
- Created multiple iterations of the document, sharing with and gathering feedback from, Subject Matter Experts (SMEs) and senior stakeholders;
- Shared the playbook with the client’s legal entities and ensured their entity playbooks complied with the original document through multiple review sessions.
The solution and key benefits
We produced a Recovery Playbook, which was signed off by the Recovery Planning programme and ensured that the bank was readily prepared in the event of a stress. The Playbook was used by the client’s global executive team during a fire drill exercise and received positive feedback during and after the exercise. The Playbook was reviewed and approved in the programme’s Steering Committee, having been reviewed by the clients’ Internal Audit and external lawyers.