Principle 12: Operational Resilience

Managing agents should maintain robust and resilient operations, embedding cyber resilience and effective third-party risk management.

To support this, managing agents should:

Following a review of managing agent Self-Assessments we have produced the this report detailing our observations and the trends seen across the market. The report outlines areas of success, areas needing development and examples of how that development may be achieved.

In the event of disruption to DXC or Lloyd’s STFO the following guidance should be referred to when coordinating settlement processes.

Managing Agents are required to report any breach of impact tolerances to Lloyd’s formally through this Impact Tolerance Breach reporting template. Any breaches of impact tolerances across the market are considered as part of Lloyd’s risk appetite, and Lloyd’s will need this information to accurately report to regulators in its performance relative to appetite. The form can be completed by anyone qualified to do so but should be approved by whomever is responsible for Operational Resilience at the Managing Agent reporting the Impact Tolerance Breach. Please send any completed forms to OpRiskMailbox@lloyds.com.

The Maturity Matrix for Operational Resilience is available within the Principles and Maturity Matrix document, which can be found on our Principles for doing business at Lloyd’s page.

The Market Operational Resilience Framework is intended to provide guidance to managing agents and other market participants on how to respond to outages and incidents that require collaboration as well as high level of summaries of centrally coordinated activities.