According to the UK's Financial Conduct Authority (FCA), third-party related issues were the leading cause of operational incidents reported to it be

FCA urges firms to boost operational resilience post-CrowdStrike disruption

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2024-11-05 16:00:02

According to the UK's Financial Conduct Authority (FCA), third-party related issues were the leading cause of operational incidents reported to it between 2022 and 2023.

“These outages emphasise firms’ increasing dependence on unregulated third parties to deliver important business services,” a statement said. “This highlights the importance of firms continuing to become operationally resilient in line with our rules.

“We encourage all firms, regardless of how they were affected by the CrowdStrike incident, to consider these lessons, to improve their ability to respond to and recover from future disruptions.”

The CrowdStrike Falcon content update caused Microsoft users to encounter problems and crash in July, and the FCA said it “saw varying degrees of operational impact on regulated firms, with no sector more impacted than others, and minimal consumer harm.”

In that period, it engaged with firms during the incident to understand the impact on firms and the market, operational responses, and recovery.