New UK op risk rules elevate risk management over measurement

Under op resilience rules, firms must plan for all severe stresses, whatever their probability

Bank of England

The aphorism “If you can’t measure it, you can’t manage it” is often attributed to Peter Drucker, the influential management thinker. But he neither said it, nor does the quote accurately reflect his view on the value of measurement.

The latest challenge to the popular mantra has come from an unlikely place: the Bank of England’s final rules on operational resilience for financial firms, published at the end of March. Firms will now be required to prepare for a variety of “severe but plausible”