Skip to content

GRA · Financial Cyber and Operational Resilience

Spatial financeWhere capital meets hazard, exposure and transition

Resilience metrics

Boards and supervisors want to know whether resilience is improving. Metrics such as outage duration, recovery time against tolerance, incident counts and control effectiveness help, but each can mislead. This page sets out which resilience metrics exist, what they show and hide, how they are collected, and who decides how they are used.

02The question

Resilience metrics: how the risk develops.

Tolerances, metrics and measurement limits. 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

Counts reward under-reporting

Incident counts fall when detection is weak or definitions narrow. A falling count can mean worse visibility, not better resilience.

Mechanism

Averages hide the tail

Average recovery time can look good while the worst incidents, which matter most, take far longer.

Mechanism

Outcome metrics matter most

Measures tied to services, such as customer impact and time beyond tolerance, connect resilience to harm better than technical uptime.

Mechanism

Leading and lagging indicators

Lagging measures show past incidents; leading measures such as patch latency and test coverage show exposure before failure.

03Spatial finance

Settlement dependencies, and what fails with a node.

How a failure at one financial centre can spread through settlement links. Design links, not real dependencies.

Sixteen financial centres, and how a failure at one spreads through settlement links.Design links, not the real dependencies of any infrastructure.
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
Time beyond impact tolerancehours per service per yearannualIncident recordsREPORTED
Customer-impacting incidentscount and customers affectedannualIncident recordsREPORTED
Service availabilitypercent of operating timemonthlyMonitoringOBSERVED
Patch latency for critical vulnerabilitiesdaysmonthlyVulnerability managementOBSERVED
Test coverage of important servicesshare tested in the yearannualTest recordsDECLARED
Control effectiveness ratingsshare of key controls rated effectiveannualControl testingDECLARED
05Monitor

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

Resilience metrics · Bank B services · Self-assessment 2

One service outside toleranceGRA · Financial Cyber and Operational Resilience

Services vs impact tolerance

Make a payment31Cloud region lossOutside
Access cash1915Cyber attackWithin
Mortgage servicing6347Data centre lossWithin
Claims payment2746Third-party failureOutside

Dependency map

people · process · technology · third parties

Remediation

  1. R-1Second claims platform supplierExit plan tested168 d
  2. R-2Immutable backups for paymentsCyber recovery113 d
Important business services: the screen's structure, terms and states for Resilience metrics.Example names and illustrative values; a design, not a record or a live system.
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
UK operational resilience self-assessment requirementsExpectations for documenting and measuring resilienceFree, Bank of England and FCA terms
BCBS operational risk loss data standardsLoss data collection for banksFree, BIS terms
ORX operational risk loss data consortium publicationsAggregated operational loss dataMembers only; public summaries free to read
NIST Cybersecurity Framework 2.0 measurement guidanceMeasuring cybersecurity outcomesPublic domain
Supervisory feedback on resilience metricsObservations on firms' metricsFree, terms per supervisor
07Scenario 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. The map on this page shows The Low Countries; the model itself is not tied to a place.

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).
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
Boards and risk committeesWhich metrics to monitor and what thresholds trigger actionMetric definitions and history
Chief risk officersHow to combine metrics into a view of resilienceData quality and coverage evidence
SupervisorsWhich metrics to request and compareFirm submissions and sector data
Internal auditWhether metrics are accurate and completeData lineage and controls

Outputs this topic produces

  • Guide to resilience metrics and their pitfalls
  • Method note on service-based outcome measures
  • Brief on leading and lagging indicators
  • Questions for boards reading resilience dashboards
09Twin and cascade simulator

Trace a shock in resilience metrics to the balance sheet.

Assembled from the Nexus Standards area profile Cyber resilience and digital operational resilience: the shocks it names, the systems and sectors that carry the loss, the controls that dampen it and the data that observe it. Pick an initiating shock and step through the cascade to see which exposures it reaches and where losses could concentrate. The Map view places the run on an example geography with open data. Every weight is a stated assumption. An exercise, not a forecast, a valuation, a rating or investment advice. To model a place of your own choosing, open the full System Builder.

Hazards

  • Dam failure
  • River flood (set off downstream)
  • Flash flood (set off downstream)
  • Mass displacement (set off downstream)
  • Widespread power outage (set off downstream)
  • Water supply shortfall (set off downstream)

Controls

  • NS-0 Constitution and principles
  • NS-9 Contextual UNIs (deployments, instances, programme instances)
  • NS-10 Policies and clauses (machine-readable obligations: definition, binding, evaluation and enforcement)
  • NS-11 Verification and monitoring (evidence, attestations, zero-trust conformance observation)
  • NS-12 Software, model and AI/ML artefacts (supply chain, model cards, dataset sheets)
  • NRS-X6 Cyber and digital security risk
  • NRS-H54 Hazard family: Signal and platform disruption (NHS-1 cyber.platform)
  • NRS-P10 Third-party, outsourcing and concentration risk
  • NRS-H107 Hazard family: Digital infrastructure concentration and monoculture (NHS-1 tech.digital-concentration)
  • NRS-K31 Domain pack profile: Cyber national resilience (DOMAIN-031)
  • NRS-S7 System profile: NXS-EOP (Earth observation and digital twins)

Observation

  • Known Exploited Vulnerabilities catalogue (listed for reference)
  • National Vulnerability Database (CVE enrichment API) (listed for reference)
  • OSV open source vulnerability database (listed for reference)
  • Proportion of population covered by a mobile network, by technology

Example geography

  • North America: 243 hexagonal cells
  • Night lights tonight, outages (VIIRS Day/Night Band), NASA GIBS
  • Surface water through cloud, 30 m (OPERA DSWx-S1 radar), NASA GIBS
  • Rain rate, last half hour (IMERG), NASA GIBS
  • Surface soil moisture (SMAP), NASA GIBS
10Core questions

What measurement asks.

  • What is the maximum tolerable disruption for each important service, expressed in time, volume or harm?
  • Which indicators give early warning that a service is drifting towards its tolerance?
  • How can resilience be compared across firms or over time without creating misleading rankings?
  • Which aspects of resilience resist measurement, and how are they assessed instead?
  • How should metrics account for dependencies on providers whose performance the firm cannot observe directly?
11Exposure, loss and capital

What resilience metrics 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 resilience metrics 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
12Mechanisms

What metrics can and cannot show.

Metrics are most useful as prompts for questions rather than as verdicts. A recovery time that improves while the dependencies behind it grow more concentrated is not a real improvement.

Tolerances

Defining harm

Tolerances translate harm to customers and markets into measurable limits.

Indicators

Leading and lagging

Lagging metrics record what happened; leading indicators try to signal trouble ahead.

Limits

Goodhart's law

When a measure becomes a target, it can be managed at the expense of the outcome it was meant to track.

13Methods and limits

Approaches to measurement.

  1. 01

    Recovery time and point objectives

    Targets for how fast systems recover and how much data may be lost. Limits: system targets may not reflect service outcomes.

  2. 02

    Service-level tolerance tracking

    Measuring disruption against tolerances in tests and incidents. Limits: incidents are rare, so evidence is limited.

  3. 03

    Dependency concentration indicators

    Measures of reliance on shared providers, using network science. Limits: describe exposure, not likelihood.

  4. 04

    Qualitative maturity assessment

    Structured judgement of capabilities, informed by resilience engineering. Limits: subjective and prone to optimism.

14Methods

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. Network science and contagionSector dependency maps · Outage propagation · Software component networksApplied here
  3. Cybersecurity and cryptographyIdentity and privileged access · Detection and response capability · Threat-led testingApplied here
15Questions

Questions and answers.

Is availability a good resilience metric?
It is useful but incomplete; high average availability can hide long outages of important services and says nothing about data integrity.
What is time beyond tolerance?
The time a service was disrupted beyond its impact tolerance, a direct measure of whether resilience objectives were met.
What are leading indicators of resilience?
Measures of exposure before failure, such as patch latency, test coverage and single points of failure, that warn before incidents occur.
Can resilience be reduced to a single score?
No. Single scores hide important differences and invite gaming. A set of measures plus judgement is more informative.
Does the platform publish resilience rankings?
No. GRA does not rate or rank firms.
What is an impact tolerance?
The maximum level of disruption to an important business service that a firm judges tolerable, usually expressed as a time limit.
Why do common definitions matter?
Because without them, supervisors and the industry cannot compare evidence across firms or aggregate it to see sector-wide exposure.
ReportsContribute

Contribute evidence from this page.

Reports is the Consortium's quarterly publication. What you know about this subject can become evidence, a case or a correction in the next edition, credited to you and published under CC BY 4.0 where it is your own work.

Global Risks AllianceFinancial Cyber and Operational ResilienceScenario and Stress-TestStrategic Systems
Financial Cyber and Operational Resilience

Bring an exposure or capital question to the Alliance.

Information and enquiries are open today. An enquiry receives a reference and names the next step; applications, payments, compute allocations and registrations open only when their team, terms and review capacity exist.