Explanation:
Operational resilience guidelines, such as those issued by national regulators (e.g., FCA/PRA in the UK), focus on the ability of firms to prevent, adapt to, respond to, recover from, and learn from operational disruptions. Ensuring that an important business service (such as an equity trading platform) can continue to function during an outage by increasing capacity and procuring remote backup capabilities directly aligns with these guidelines. Options A and B focus on productivity and cost reduction, not resilience. Option C relates to operational risk capital, which is distinct from the concept of operational resilience that focuses on continuity of services rather than just the financial absorption of losses.
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A
Increase the existing performance incentives for the firm’s brokers and sales representatives to further enhance their productivity.
B
Reduce costs by consolidating the human resources and payroll functions of the acquired firms into a single firm-wide process.
C
Reserve additional economic capital for operational risk to provide an incremental capital cushion against potentially extreme operational losses.
D
Increase the bandwidth capacity for the firm’s equity trading platform and procure remote backup capabilities so the platform can continue to function during an outage.