Strengthening financial sector resilience
The Paris financial centre resilience system fosters coordination and information-sharing to prevent major operational crises from causing lasting disruption to the financial system.
Role of the Paris Resilience Group
In 2005, as part of its financial stability mandate, the Banque de France set up the Paris Resilience Group, which is chaired by its Directorate General Financial Stability and Operations. The Group brings together the main Paris financial centre participants, with the aim of increasing the financial system’s ability to withstand external shocks.
Its day-to-day activities and secretariat functions are managed by a team in the Banque de France’s Financial Market Infrastructures Directorate. It meets informally at least twice a year to set priorities for and improve the financial centre’s crisis management system. The Paris Resilience Group is structured into two working groups, responsible for the crisis management system and for organising sector-wide simulation exercises to develop operational response capabilities.
Tasks of the Paris Resilience Group
The Group’s operational tasks can be broken down into three phases:
- the anticipation phase and preparation of the crisis response (notably via the simulation exercises)
- the crisis management phase, comprising an assessment of the situation and collective decision-making
- ongoing improvement of the system and awareness-raising initiatives
Steering and coordinating the crisis response
In the event of a crisis, the response will depend both on the source of the disruption (natural disaster, pandemic, major industrial action, failure of a critical service provider, cyberattack, etc.) and its operational impact on critical financial functions (human resources, premises, information system, etc.).
Members of the Paris Resilience Group meet within a dedicated structure, the Coordination Unit, to assess the situation, share information and take collective decisions. The unit is overseen by the Banque de France and supported by three financial centre crisis units – one for each of the main issues to be handled during a crisis: liquidity, cash and communication. These crisis units are comprised of professionals from both the private sector and the Banque de France.