The Hong Kong Institute for Monetary and Financial Research (HKIMR), the research arm of the Hong Kong Academy of Finance (AoF), released today (15 June) a new Applied Research report, titled “COVID-19 and the Operational Resilience of Hong Kong’s Financial Services Industry: Preliminary Considerations from the 2020-2021 Experience”.
In view of the COVID-19 pandemic and its disruptions on businesses and individuals, this report looks at the experience of the years 2020-2021 to understand how the financial services industry in Hong Kong has maintained operational resilience during different phases of the pandemic. With the views of local financial institutions gathered through a survey and interviews, commissioned by the HKIMR in July 2021, the report discusses the measures implemented across sectors of the financial services industry to mitigate the impact of the pandemic. For example, 85% of the survey respondents stated that they had incorporated pandemic scenarios in their business continuity plans before the pandemic. In addition, hybrid work models have also been adopted by financial institutions. The report also investigates the critical role of external enhancers, including policy support, financial and data infrastructure and the accelerated adoption of financial innovations, in enhancing financial institutions’ operational resilience. The report is concluded by providing some preliminary considerations on how financial institutions can maintain and enhance the operational resilience should similar disruptive events occur in the future.
“By illustrating the roles of business continuity plans, remote working arrangements and additional factors, including a supportive policy environment, in achieving operational resilience, we hope that this study can provide some useful preliminary insights for financial institutions regarding their operational resilience in the post-COVID-19 future,” said Mr Edmond Lau, Deputy Chief Executive of the Hong Kong Monetary Authority and Deputy Chairman of the HKIMR.
The report is available below:
Hong Kong Academy of Finance
Hong Kong Institute for Monetary and Financial Research (HKIMR)
15 June 2022
About the Hong Kong Academy of Finance (AoF)
The AoF is set up with full collaboration amongst the HKMA, the Securities and Futures Commission, the Insurance Authority and the Mandatory Provident Fund Schemes Authority. By bringing together the strengths of the industry, the regulatory community, professional bodies and the academia, it aims to serve as (i) a centre of excellence for developing financial leadership; and (ii) a repository of knowledge in monetary and financial research, including applied research.
About the Hong Kong Institute for Monetary and Financial Research (HKIMR)
The HKIMR is the research arm of the AoF. Its main remit is to conduct research in the fields of monetary policy, banking and finance that are of strategic importance to Hong Kong and the Asia region. The Applied Research studies undertaken by the HKIMR are on topics that are highly relevant to the financial industry and regulators in Hong Kong, and they aim to provide insights on the long-term development strategy and direction of Hong Kong’s financial industry.