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GRA · Financial Cyber and Operational Resilience

Spatial financeWhere capital meets hazard, exposure and transition

Operational resilience testing

Testing shows whether resilience plans hold. Firms run severe but plausible scenario tests against impact tolerances, failover and restore tests, threat-led red-team exercises and joint exercises with peers and authorities. This page sets out the main test types and what each shows, where testing gives false comfort, the records produced, and who decides.

01Register

Operational resilience testing on the record.

02The question

Operational resilience testing: how the risk develops.

Severe but plausible scenario design. The dossier below sets out how the risk develops, what is measured, where the data come from, how it is modelled and who decides.

Mechanism

Scenarios set the challenge

Tests are only as hard as the scenarios chosen. Mild scenarios confirm plans; severe ones expose weaknesses.

Mechanism

Red teams find what audits miss

Threat-led testing uses real attacker techniques against live systems, finding weaknesses in detection and response that control checklists miss.

Mechanism

Findings decay without action

Unremediated findings repeat in later tests. Tracking each finding to verified closure turns testing into improvement.

Mechanism

Joint exercises test coordination

Exercises with suppliers, peers and authorities reveal communication and decision gaps that sit between organisations.

03Monitor

Important business services.

The screen a team would use to follow this subject: its measures, states and decisions. Names are examples and values are illustrative.

Important business services

Operational resilience testing · Bank B services · Self-assessment 3

One service outside toleranceGRA · Financial Cyber and Operational Resilience

Services vs impact tolerance

Make a payment25Cloud region lossWithin
Access cash198Cyber attackWithin
Mortgage servicing6653Data centre lossWithin
Claims payment4551Third-party failureOutside

Dependency map

people · process · technology · third parties

Remediation

  1. R-1Second claims platform supplierExit plan tested158 d
  2. R-2Immutable backups for paymentsCyber recovery47 d
Important business services: the screen's structure, terms and states for Operational resilience testing.Example names and illustrative values; a design, not a record or a live system.
04Indicators

What is measured, and how well.

Each indicator carries its unit, its cadence, the kind of source behind it and the evidence label a value would carry. No values are shown: a programme supplies them under its own authority.

IndicatorUnitCadenceSource typeLabel
Scenario tests completed for important servicescountannualFirm recordsDECLARED
Threat-led penetration testscountperiodicPublic recordsPublished statistics
Critical findings remediated on timeshareperiodicRemediation trackingDECLARED
Restore tests passedshareannualTest recordsDECLARED
Joint exercises with suppliers or sectorcountannualFirm recordsDECLARED
Tests involving severe destructive scenariosshare of testsannualTest recordsDECLARED
05Scenario model

Transition and physical risk on a portfolio.

Three scenario families after the NGFS framework move a sector portfolio through carbon costs and warming damages; the transmission view follows the losses to lenders, investors, public finances and households. Scenario: named assumptions about the future, not a forecast.

Controls

Carbon price at the horizon, orderly path
200 per tCO2
Delay before a disorderly transition
50% of horizon
Cost passed to customers
50%
Warming today above pre-industrial
1.30°C
Warming per decade, current policies
0.25°C
Damage coefficient
0.24% per °C²
Years ahead
25 years

Readouts

Worst scenario at the horizon
−33.6% of value
Numbers, methods and sources
YearOrderly transition (% value)Delayed, disorderly transition (% value)Current policies (% value)
0−0.38−0.38−0.38
3−2.87−0.53−0.67
6−5.36−0.68−0.97
9−7.84−0.84−1.27
12−10.33−0.99−1.57
15−12.82−7.12−1.87
18−15.31−15.05−2.17
21−17.80−23.00−2.48
24−20.29−30.94−2.79

Methods

  1. Climate scenario families NGFS (2023), Climate Scenarios for central banks and supervisors, Phase IV
  2. Climate stress test of the financial system Battiston and others (2017), Nature Climate Change 7
  3. Damage function Nordhaus (2017), Revisiting the social cost of carbon, PNAS 114
  4. Transmission channels BCBS (2021), Climate-related risk drivers and their transmission channels
  5. Uncertainty fan (parameter Monte Carlo) Spiegelhalter, Pearson and Short (2011), Visualising uncertainty about the future, Science 333
  6. One-at-a-time sensitivity (tornado) Saltelli and others (2008), Global Sensitivity Analysis: The Primer, Wiley

Data

The model runs on the teaching values set by the controls. To calibrate it for a place, read it against these admitted layers and series, which this page's map can draw:

  • Urban extents Natural Earth
  • Seaports Natural Earth
  • Past year, daily temperature (ERA5 via Open-Meteo) Open-Meteo.com (CC BY 4.0), Copernicus ERA5 (C3S/ECMWF) · register open-meteo.public-pages
  • Surface air temperature, daytime (AIRS) NASA AIRS · register nasa.gibs.context-live-layers
Transition and physical risk on a portfolio. Illustrative teaching model: it runs on the values set by the controls, not on measured data. Methods: Climate scenario families (NGFS (2023), Climate Scenarios for central banks and supervisors, Phase IV); Climate stress test of the financial system (Battiston and others (2017), Nature Climate Change 7); Damage function (Nordhaus (2017), Revisiting the social cost of carbon, PNAS 114).
06Sources

Where the evidence comes from.

Named public datasets and institutional records, each with its licence class. Sources by agreement are used only under their terms and never republished.

SourceWhat it givesLicence class
TIBER-EU frameworkThreat intelligence-based ethical red-teamingFree, ECB terms
DORA threat-led penetration testing standardsEU testing requirementsFree, EU reuse terms
CBEST frameworkUK threat-led testingFree, Bank of England terms
Hong Kong Monetary Authority iCAST and similar frameworksTesting frameworks in other jurisdictionsFree, terms per authority
Supervisory reports on scenario testing practiceObservations on firms' testingFree, terms per supervisor
07Exposure, loss and capital

What operational resilience testing means for exposure, loss and capital.

The exposure, loss, scenario and capital views a risk officer, supervisor or ministry of finance would ask for, with the frameworks they report against. Structures follow supervisory and actuarial practice. Values are illustrative: never prices, ratings or advice.

Transmission channels

How a shock in operational resilience testing reaches credit, market, underwriting, liquidity and operational risk, and feeds back.

Channel structure after the Basel Committee's work on climate-related risk drivers and transmission channels; links shown are typical paths, not estimated exposures.
NGFS climate scenarios · Network for Greening the Financial SystemIFRS S2 Climate-related Disclosures · ISSBTCFD recommendations · Financial Stability Board TCFDPrinciples for the effective management of climate-related financial risks · Basel Committee on Banking Supervision
08Decisions

Who decides, and what the evidence serves.

Financial Cyber and Operational Resilience prepares evidence. The decisions below are taken by the authorities named, under their own rules, and never by the platform.

Who decidesThe questionEvidence this page serves
BoardsWhich scenarios to test and whether results are acceptableTest results and remediation status
AuthoritiesWhich firms must run threat-led testsFrameworks and risk assessments
Testing teamsHow to design tests safely and realisticallyFramework requirements
Internal auditWhether testing is adequate and findings closedTest and remediation records

Outputs this topic produces

  • Guide to operational resilience test types
  • Method note on severe scenario design
  • Brief on remediation tracking
  • Questions for boards on test results
09Core questions

What test designers ask.

  • Is the scenario severe enough to stretch the firm, yet plausible enough to be credible?
  • Does it include combined failures, such as a cyber attack during a provider outage?
  • Does it test decisions and communication as well as technology?
  • What happens to findings: are weaknesses fixed and retested?
10Mechanisms

What testing reveals.

Tests often reveal hidden dependencies, such as a recovery process that relies on a system that would itself be down, or a team that cannot be reached without the communication tool that failed. They reveal decision bottlenecks and gaps between documented plans and what people actually do.

Threat-led testing, carried out under strict controls by authorised teams, shows how real attackers could move through systems. Sector-wide exercises show how firms, providers and authorities would coordinate. Each kind of test answers different questions, and none proves that a firm is resilient against everything.

11Methods and limits

Kinds of testing.

  1. 01

    Scenario-based exercises

    Tabletop and simulation exercises using resilience engineering methods. Limits: participants know it is an exercise.

  2. 02

    Technical recovery tests

    Testing failover and restoration of systems. Limits: full production tests carry risk.

  3. 03

    Threat-led penetration testing

    Controlled emulation of real attackers, grounded in cybersecurity. Limits: time-boxed and scoped.

  4. 04

    Sector-wide exercises

    Coordinated exercises across firms and authorities. Limits: complex to organise.

12Methods

How it is studied, and what the methods cannot say.

  1. Reliability and resilience engineeringService and dependency mapping · Recovery strategy comparison · Learning reviewsApplied here
  2. Cybersecurity and cryptographyIdentity and privileged access · Detection and response capability · Threat-led testingApplied here
  3. Software and safety-critical systems engineeringChange control for core systems · Integrity by design · Fault toleranceApplied here
14Questions

Questions and answers.

What is a severe but plausible scenario?
A disruption that is extreme enough to challenge a firm's resilience yet could realistically happen, such as loss of a key provider or a destructive cyber attack.
How does red-teaming differ from penetration testing?
Penetration testing looks for vulnerabilities in defined systems; red-teaming simulates a real attacker's campaign against people, processes and technology to test detection and response.
Why involve suppliers in exercises?
Because many disruptions start at or depend on suppliers, and coordination with them is part of recovery.
Can the platform run a test for my firm?
No. GRA does not carry out testing or assess results. Published scenario summaries are educational.
What does severe but plausible mean?
A scenario that is unlikely but realistic, often informed by past incidents elsewhere, that would stretch the firm's ability to stay within tolerance.
Does passing a test prove resilience?
No. It shows performance under one scenario. Resilience is demonstrated over time through repeated, varied testing and remediation.
Why test combined failures?
Because real incidents often combine causes, such as an attack during a provider outage, and plans built for single failures may not hold.
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