Consultation Paper on the Standard of Sound Practice on Recovery Planning (October 2026)

BANK OF JAMAICA
Consultation on the
Standard of Sound Practice on
Recovery Planning
(for licensees under the Banking Services Act)

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Consultation Paper on the Standard of Sound Practice on Recovery Planning (2026) (for Licensees under the Banking Services Act) The proposed Standard on Recovery Planning is available on Bank of Jamaica’s website at www.boj.org.jm. Bank of Jamaica. All rights reserved. No reproduction or translation of this publication may be made without the prior written permission of Bank of Jamaica. Applications for such permissions, for all or part of this publication, should be made to:
Bank of Jamaica, Nethersole Place,
Kingston, Jamaica
(Telephone 876-922-0750 - 9; Fax 876-922-2519 or email FISDMailbox@boj.org.jm)

CONTENTS
Chapter 1 – Introduction and Definitions ................................................................................................................ 4
Chapter 2 – Objectives of these Standards............................................................................................................ 7
Chapter 3 – Scope and Application......................................................................................................................... 7
Chapter 4 – Key Requirements of Recovery Planning.......................................................................................... 8
Chapter 5 – Governance of Recovery Planning................................................................................................... 10
Chapter 6 – Core Components of the Recovery Plan......................................................................................... 15
Chapter 7 – Supervisory Review, Assessment, and Engagement .................................................................... 25
Chapter 8 – Group and Cross-Border Recovery Planning................................................................................. 27
Chapter 9 – Operational Preparedness, Testing and Maintenance .................................................................. 33

CHAPTER 1 – INTRODUCTION AND DEFINITIONS

1. Deposit-taking institutions (DTIs) perform essential financial intermediation services,
   including deposit-taking, credit provision, payment and settlement services, and foreign exchange intermediation. Severe stress affecting a deposit-taking institution may disrupt these services, thereby undermining public confidence, transmitting risk across the financial system, and threatening financial stability.
2. Recovery planning is a prudential process through which a deposit-taking institution or a
   financial holding company identifies and prepares measures to restore financial and operational viability at the institutional or group-wide level during severe stress while remaining a going concern. Effective recovery planning supports timely decision-making, strengthens institutional resilience, and reduces the likelihood of disorderly failure.
3. Where a DTI is a member of a financial group headed by a licensed financial holding
   company (FHC), the FHC must ensure that a group recovery plan is prepared and maintained for the financial group. This supports a comprehensive assessment of intra￾group contagion, shared resources, and the group's capacity to respond effectively to severe stress.
4. These requirements have been developed having regard to the Financial Stability
   Board’s Key Attributes of Effective Resolution Regimes for Financial Institutions and relevant international supervisory practices, adapted to Jamaica’s legal, institutional, operational, and financial system context.
5. On the proposals set out in this draft Standard, the Bank invites feedback from DTIs,
   FHCs, and other stakeholders on or before 29 January 2027. The Bank will use the feedback received to inform its final approach. Further, the Bank will publish a set of frequently asked questions arising from the consultation feedback. PURPOSE OF THESE REQUIREMENTS
6. These requirements establish the minimum supervisory expectations for the preparation,
   maintenance, testing, and implementation of Recovery Plans by deposit-taking institutions and financial holding companies.
7. Recovery planning must form an integral part of the deposit-taking institution’s and the
   FHC’s group-wide governance, risk management, capital and liquidity planning, contingency funding, operational resilience, business continuity, strategic planning, and crisis management arrangements, and must have regard to any existing statutory or supervisory early warning mechanisms applicable to the licensee. Recovery planning must operate as an ongoing management process and not merely as a regulatory compliance or documentation exercise.

RELATIONSHIP WITH RESOLUTION PLANNING AND PUBLIC SECTOR SUPPORT
8. Recovery planning is distinct from, but complementary to, resolution planning. Recovery
planning addresses measures an institution may implement to restore viability while remaining a going concern, while resolution planning addresses measures the relevant authorities may take where recovery measures are unsuccessful, or the institution is no longer viable.
9. The preparation, approval, or maintenance of a Recovery Plan must not create any
expectation that extraordinary public sector support, government guarantees, emergency capital support, discretionary emergency liquidity assistance, or other exceptional financial assistance will be made available to the institution during stress. DEFINITIONS
10. In these standards, unless the context otherwise requires:
“Core Business Lines” means business lines and associated services that are material to the revenue, profitability, franchise value, market position, or continued viability of a DTI or financial group. “Critical Functions” means activities, services, or operations performed by a DTI or financial group whose disruption or discontinuance could materially affect the functioning of the financial system, financial stability, or the provision of essential financial services in Jamaica. “Early Warning Indicator” or “EWI” means a qualitative or quantitative indicator used to identify emerging stress or deterioration in a DTI’s or financial group’s financial or operational condition before recovery escalation thresholds are reached. “Escalation Threshold” means a predefined level or condition associated with a Recovery Indicator that requires heightened monitoring, management action, governance escalation, or assessment of potential recovery measures. The breach of an escalation threshold does not, by itself, require the automatic activation of a Recovery Plan or implementation of a recovery option. “Extraordinary Public Sector Support” means discretionary or exceptional financial assistance provided by the Government, Bank of Jamaica, or any public authority to preserve or restore the viability of an institution. This support does not include access to an ordinary standing facility for which the institution is eligible and satisfies the applicable terms and conditions. “Group Recovery Plan” means a Recovery Plan prepared on a consolidated or group-wide basis that covers the parent entity and the relevant subsidiaries, branches, and material entities within the financial group.

“Jamaica-specific Recovery Measures” means recovery actions, governance arrangements, indicators, escalation processes, or contingency measures designed to address the risks, legal requirements, operational circumstances, and market conditions affecting the Jamaican operations of a DTI or financial group. “Licensee” means DTIs and FHCs licensed under the Banking Services Act, 2014. “Material Entity” means an entity within a financial group whose distress, failure, disruption, or disposal could materially affect the financial condition, operational continuity, viability, or recovery prospects of the DTI or financial group. “Operational Continuity” means the ability of a DTI or member of a financial group to maintain the operations, services, systems, personnel, facilities, data, and access to financial market infrastructures necessary to support critical functions and implement recovery measures during severe stress. “Recovery Capacity” means the extent to which a DTI or financial group can restore its capital, liquidity, funding position, operational resilience, and overall viability through the timely implementation of credible and feasible recovery options under severe but plausible stress. “Recovery Indicator” means a qualitative or quantitative metric used to monitor the financial or operational condition of a DTI, FHC or other relevant Material Entity of the financial group, and to support timely escalation, decision-making, and assessment of potential recovery options. “Recovery Option” means a financial, strategic, or operational measure that a DTI or FHC may implement to restore or strengthen capital, liquidity, funding position, profitability, operational resilience, or overall viability during severe stress. “Recovery Plan” means a documented framework setting out the governance arrangements, recovery indicators, escalation processes, stress scenarios, recovery options, implementation arrangements, and other measures through which a DTI or financial group intends to restore viability during severe stress. “Recovery Planning Committee” or “RPC” means a committee established or assigned the responsibilities by a DTI or FHC to oversee the development, maintenance, testing, and implementation readiness of its or the group recovery plan. “Standalone Recovery Plan” means a recovery plan prepared specifically for an individual legal entity or Jamaican operation, separate from a consolidated or group recovery plan that is outside of Jamaica. LEGAL REQUIREMENT
11. These requirements are issued pursuant to section 34FL(b)(ii) of the Bank of Jamaica
Act, which allows the Financial Policy Committee of the Bank to make standards for the operation of licensees to be known as the Supervisory Standard of Sound Practice.

CHAPTER 2 – OBJECTIVES OF THESE STANDARDS
12. The objectives of these requirements are to ensure that licensees, as applicable:
a. maintain credible, actionable and current recovery plans for responding to severe stress; b. identify material vulnerabilities, assess recovery capacity and maintain feasible recovery options;
c. establish effective governance, escalation and decision-making arrangements for
recovery planning and execution; d. maintain the financial, legal, operational and technological capabilities necessary to implement recovery options; e. integrate recovery planning into each DTI’s and group-wide governance, risk management, capital, liquidity, operational resilience and crisis management frameworks; and f. support the continuity of critical functions and reduce the risk of contagion, disorderly failure and disruption to financial stability.
CHAPTER 3 – SCOPE AND APPLICATION
SCOPE OF APPLICATION
13. These Requirements apply to all DTIs and FHCs licensed under the Banking Services
Act, 2014.
14. A DTI must prepare and maintain a recovery plan addressing its capital, liquidity,
operational, governance and other recovery needs.
15. An FHC must prepare and maintain a group recovery plan for the financial group. The
group recovery plan must incorporate relevant elements of a DTI’s recovery plan by reference and must address material group-level risks, dependencies and recovery actions not adequately addressed at the DTI level, including, where applicable, intra￾group exposures and funding arrangements, guarantees, shared services, ownership and group structures, non-DTI subsidiaries, contagion risk, group capital and liquidity, restrictions on the transfer of resources, and recovery actions requiring approval by the FHC’s Board or shareholders. FOREIGN-OWNED DTIS
16. A Jamaican subsidiary of a foreign financial group must maintain a Recovery Plan that
adequately addresses its:

a. local risks, operations and market conditions; b. Critical functions and material dependencies;
c. governance, escalation and decision-making arrangements; and
d. relationship with the wider group recovery plan.
FOREIGN BANK BRANCHES
17. A foreign bank branch will not generally be required to maintain a Standalone Recovery
Plan provided that the recovery needs, risks, dependencies and recovery options relating to the Jamaican operations are adequately addressed in the parent’s group or the foreign bank’s recovery plan. In that regard, the DTI will be required to demonstrate that its Jamaican operations are adequately addressed in the parent institution’s or foreign bank’s recovery plan.
18. The Supervisor may require supplementary recovery-planning information where
warranted by the nature, scale, complexity, systemic importance or risk profile of the Jamaican operations.
19. The detailed requirements for group and cross-border recovery planning are set out in
Chapter 8.
CHAPTER 4 – KEY REQUIREMENTS OF RECOVERY PLANNING
20. A Recovery Plan must be credible, actionable and operationally feasible and must enable
the DTI or the FHC to restore viability under Severe but Plausible Stress Scenarios without reliance on Extraordinary Public Sector Support. At a minimum, the Recovery Plan must:
a. identify Critical Functions and Core Business Lines; b. establish clear governance, escalation, decision-making and communication arrangements;
c. include Recovery Indicators and escalation thresholds;
d. assess institution-specific, market-wide, operational and combined stress scenarios; e. identify and assess credible Recovery Options; f. assess Recovery Capacity under each relevant stress scenario; and g. identify the capabilities, dependencies, impediments and preparatory measures relevant to the implementation of Recovery Options.

21. The Recovery Plan must be integrated with the institution’s governance arrangements,
    risk management, capital and liquidity planning, contingency funding, operational resilience, business continuity and crisis management arrangements.
22. Recovery Options must be based on realistic assumptions and be capable of
    implementation within the Jamaican legal, regulatory, operational and market environment. The assessment must consider feasibility, implementation timeline, dependencies, resource requirements, necessary approvals, market constraints and execution risks.
23. (1) Recovery Indicators and escalation thresholds must be calibrated at levels that
    support the early identification of stress and provide sufficient early warning to allow adequate time for assessment, governance escalation and timely decision-making before the institution's recovery capacity is materially impaired. (2) A breach of a Recovery Indicator threshold must prompt an assessment of the institution's condition and escalation through the established recovery governance arrangements, with the appropriate response determined having regard to the nature, severity and expected duration of the stress. The breach therefore triggers management and Board consideration of whether heightened monitoring, preparatory measures, activation of the Recovery Plan, or implementation of one or more Recovery Options is warranted in the circumstances. (3) A licensee must establish documented governance and escalation procedures specifying the actions to be taken following a breach, including the persons or committees responsible for assessing the breach, the level of management or Board notification required, and the timeframe within which a decision must be made on whether heightened monitoring, preparatory measures, activation of the Recovery Plan, or implementation of one or more Recovery Options is warranted.
24. A decision to activate the Recovery Plan must be informed by an assessment of the
    institution’s overall financial and operational condition, relevant quantitative and qualitative indicators, forward-looking analysis, and the judgement of Senior Management and the Board of Directors.
25. Recovery Capacity must be assessed under each relevant stress scenario and
    supported by appropriate analysis and evidence. The assessment must:
    a. reflect the timing and sequencing of Recovery Options; b. account for dependencies, constraints and execution risks;
    c. consider interactions among Recovery Options;
    d. avoid double-counting of expected benefits; and

e. distinguish between immediately executable Recovery Options and those dependent on unresolved conditions or preparatory measures.
26. A licensee must ensure that it has the operational arrangements, resources and
preparedness necessary to execute its Recovery Options and maintain the continuity of its Critical Functions during severe stress. This includes having in place the governance, systems, information, personnel and third-party arrangements required to implement recovery actions within the relevant timeframe. Such arrangements may include, for example, maintaining current operational playbooks for key Recovery Options; identifying responsible persons and decision-making authorities; ensuring continued access to critical systems, data and records; maintaining appropriate arrangements with key service providers; preserving access to payment and settlement infrastructure; and periodically testing the institution’s ability to execute the relevant actions under stressed conditions.
27. A licensee must identify, assess and address any material legal, financial, operational,
technological, third-party or other impediments that could delay, constrain or prevent the timely implementation of its Recovery Options.
CHAPTER 5 – GOVERNANCE OF RECOVERY PLANNING
28. Subject to paragraphs 17 and 110, each licensee must establish and maintain a
documented governance framework governing the development, approval, maintenance, testing and implementation of its Recovery Plan. At a minimum, the framework must clearly define:
a. roles and responsibilities; b. reporting lines and accountability;
c. decision-making authority;
d. escalation and communication arrangements; and e. arrangements for effective review and challenge.
29. (1) The governance framework must be approved by the Board and reviewed at least
once every three years, or earlier where there is a material change affecting recovery planning or where material deficiencies are identified through Internal Audit, an independent review, supervisory assessment, testing, or other relevant assurance activity. (2) For this purpose, a material change may include a significant change in the institution’s business model, organisational or group structure, risk profile, capital or liquidity position, Critical Functions, material legal entities, key operational or third-party

dependencies, information systems, recovery options or recovery capacity. A review must also be undertaken where testing, Internal Audit, independent review, or supervisory assessment identifies material deficiencies. ROLE OF THE BOARD
30. The Board has ultimate responsibility for the adequacy and effectiveness of the Recovery
Plan. The Board must approve:
a. the Recovery Plan and any material amendments; b. Recovery Indicators and escalation thresholds;
c. material Recovery Options; and
d. the governance and escalation framework.
31. The Board must ensure that the Recovery Plan:
a. remains credible, feasible and adequately resourced; b. is consistent with the licensee’s business model and risk profile; and
c. is subject to a comprehensive review at least once every three years, or earlier
where a material change occurs that could affect the credibility, feasibility or effective implementation of the Recovery Plan.
32. The Board of Directors must maintain sufficient knowledge and understanding of the
Recovery Plan, including its key assumptions, triggers, Recovery Options and governance arrangements, to enable it to provide effective oversight and challenge.
33. In fulfilling its oversight responsibilities, the Board must:
a. challenge material assumptions underlying stress scenarios, Recovery Options and Recovery Capacity where those assumptions could materially affect the credibility, feasibility or timely execution of the Recovery Plan. This includes, in particular, assumptions relating to the severity and duration of stress, market conditions, availability of funding, asset-sale values and execution periods, access to counterparties or markets, operational dependencies, regulatory approvals, and the timing and effectiveness of proposed Recovery Options; b. assess the licensee’s readiness to implement Recovery Options;
c. monitor material breaches of Recovery Indicators and the resulting management
actions; and d. ensure that material deficiencies are addressed within an appropriate timeframe.
34. The Board must receive timely and sufficiently detailed reports on the institution’s
recovery preparedness, including the status of Recovery Indicators, results of testing and

exercises, identified material deficiencies, and progress in implementing any required remediation, to support effective oversight and challenge. ROLE OF SENIOR MANAGEMENT
35. Senior Management is responsible for developing, maintaining and implementing the
Recovery Plan and for ensuring that the licensee remains operationally prepared to execute its Recovery Options. Senior Management must:
a. integrate recovery planning into the licensee’s governance, risk management, capital, liquidity, operational resilience and crisis management arrangements; b. maintain Recovery Indicators, escalation thresholds and reporting arrangements, and monitor them at a frequency commensurate with the nature, scale and risk profile of the institution, and sufficiently frequently to identify emerging stress and support timely escalation and decision-making;
c. ensure the availability of reliable data, management information, systems and
resources necessary for recovery planning and execution; d. identify and address material impediments to the implementation of Recovery Options; e. coordinate testing, reviews and remediation activities; f. ensure that relevant business, support and control functions understand their responsibilities; and g. escalate material concerns to the Board and notify the Supervisor where required.
36. Senior Management must report to the Board on the institution’s recovery preparedness
at least annually and more frequently where material developments could affect the credibility, adequacy or effective implementation of the Recovery Plan. Such developments may include changes in the institution’s financial or operational condition, risk profile, Recovery Indicators, Recovery Options or operational preparedness. FOREIGN BANK BRANCH
37. In the case of a branch of a foreign bank, the Recovery Plan must be approved by the
board of management or other governing body established in relation to the Jamaican branch operations, or, where responsibility for recovery planning is retained by the foreign bank, by the board of directors or other appropriate governing body of the foreign bank.
38. Where the Recovery Plan for the Jamaican branch forms part of a group-wide or foreign
bank recovery plan, the relevant governing body must ensure that the plan adequately and distinctly addresses the Jamaican operations, including the branch's material risks,

Critical Functions, Recovery Indicators, Recovery Options, operational and financial dependencies, and the actions available to maintain or restore the viability of the Jamaican operations.
39. The senior officer responsible for the Jamaican branch must ensure that the approved
Recovery Plan is appropriately implemented and maintained in respect of the Jamaican operations and must remain accountable for compliance with the requirements of these standards. RECOVERY PLANNING OWNERSHIP
40. Each licensee must designate a member of Senior Management to coordinate recovery￾planning activities. The designated executive must have sufficient authority, expertise
and resources to:
a. coordinate the development, maintenance and testing of the Recovery Plan; b. monitor recovery preparedness and remediation;
c. coordinate the monitoring and escalation of Recovery Indicators;
d. report to the Board and Senior Management; and e. serve as the principal contact with the Supervisor on recovery-planning matters.
41. The designation of an executive with responsibility for the Recovery Plan does not
relieve the Board or Senior Management of their respective responsibilities for the institution’s recovery planning framework. RECOVERY PLANNING COMMITTEE
42. (1) Every licensee must establish a Recovery Planning Committee or assign equivalent
responsibilities to an appropriate existing committee. The committee must oversee:
a. the maintenance and review of the Recovery Plan; b. recovery preparedness and implementation readiness;
c. Recovery Indicators and escalation matters;
d. testing and remediation; and e. coordination among relevant business, support and control functions. (2) The Recovery Planning Committee must comprise senior representatives from functions that are material to the development, maintenance and implementation of the Recovery Plan. Its composition must be appropriate to the size, complexity and risk profile of the licensee and must include, at a minimum:
a. a senior executive designated to chair the Committee;

b. the Chief Risk Officer or equivalent senior risk management executive;
c. the Chief Financial Officer or equivalent senior finance executive;
d. the senior executive responsible for treasury and liquidity management; e. the senior executive responsible for operations and operational resilience; f. the senior executive responsible for technology and information systems, where relevant; g. the senior executive responsible for legal and regulatory matters; h. the senior executive responsible for compliance;
i. the senior executive responsible for business continuity and crisis management,
where this responsibility is not otherwise represented; and j. such other senior executives or functional representatives as may be necessary having regard to the institution’s business model, Critical Functions, Recovery Options and identified impediments to recovery. (3) For a financial holding company, the composition must also provide for appropriate representation from material regulated entities, shared-service functions and other group entities whose activities could materially affect the development or implementation of the Recovery Plan. ESCALATION AND DECISION-MAKING
43. Each licensee must maintain a documented escalation framework that specifies:
a. monitoring and reporting responsibilities; b. escalation stages and timelines;
c. the persons or bodies authorised to assess and approve Recovery Options;
d. internal and external communication requirements; and e. supervisory notification requirements.
44. The escalation framework must distinguish between early warning, heightened
monitoring, recovery assessment and recovery decision-making.
45. A licensee must maintain adequate records of all assessments, decisions, approvals and
actions relating to recovery planning and implementation, including the basis for significant decisions and any resulting follow-up or remediation.

CHAPTER 6 – CORE COMPONENTS OF THE RECOVERY PLAN
46. A Recovery Plan must operate as a practical crisis-management tool that enables a
licensee to assess, approve and implement appropriate Recovery Options during severe stress. At a minimum, the Recovery Plan must include:
a. an Executive Summary; b. a strategic analysis and vulnerability assessment;
c. an assessment of Critical Functions and Core Business Lines;
d. governance, escalation and decision-making arrangements; e. Recovery Indicators and escalation thresholds; f. Severe but Plausible Stress Scenarios that are informed by, and where appropriate aligned with, the institution’s wider stress-testing and risk￾management frameworks; g. Recovery Options and an assessment of their feasibility; h. a Recovery Capacity Assessment;
i. implementation playbooks;
j. funding, liquidity and collateral arrangements; k. a communication strategy;
l. operational-continuity arrangements;
m. data and management-information capabilities; n. preparatory measures and identified impediments; o. group and cross-border considerations, where applicable; and p. testing, review and updating arrangements.
47. The components of the Recovery Plan must be internally consistent, proportionate to the
licensee’s size, complexity, systemic importance and risk profile, and supported by sufficient analysis and evidence. EXECUTIVE SUMMARY
48. The Recovery Plan must contain a concise Executive Summary for use by the Board,
senior management and the Supervisor during severe stress. The Executive Summary must provide:
a. an overview of the licensee’s structure, business model and principal vulnerabilities;

b. its Critical Functions and Core Business Lines;
c. the principal stress scenarios, Recovery Indicators and escalation arrangements;
d. the principal Recovery Options and estimated Recovery Capacity; e. material impediments and preparatory measures; f. key governance and communication arrangements; and g. the officers responsible for escalation, decision-making and implementation.
49. The Executive Summary must include an action checklist covering escalation,
notification, option assessment, approval, implementation, communication and monitoring. STRATEGIC ANALYSIS AND VULNERABILITY ASSESSMENT
50. The Recovery Plan must include an institution-specific analysis of the licensee’s:
a. legal, ownership, governance and organisational structure; b. business model and material activities;
c. principal sources of capital, liquidity, funding and earnings;
d. risk profile and material concentrations; e. subsidiaries, branches and other Material Entities; f. intra-group and third-party dependencies; g. participation in financial market infrastructures; and h. other matters that may affect recovery.
51. The strategic analysis must identify material vulnerabilities and explain how such
vulnerabilities may affect the licensee’s viability or its ability to implement Recovery Options. For each material vulnerability, the licensee must assess:
a. its source and potential impact; b. the circumstances and speed at which it may arise;
c. its effect on the licensee’s Recovery Capacity; and
d. available mitigating measures.
52. Identified vulnerabilities must be reflected in the licensee’s stress scenarios, Recovery
Indicators, Recovery Options, Recovery Capacity Assessment and implementation playbooks.

CRITICAL FUNCTIONS AND CORE BUSINESS LINES
53. The Recovery Plan must identify the licensee’s Critical Functions and Core Business
Lines using a documented and consistently applied methodology. The assessment must consider relevant quantitative and qualitative factors, including:
a. the importance of the function or business line to customers and the financial system; b. its contribution to the licensee’s financial position and viability;
c. market share and availability of substitutes;
d. operational and financial interdependencies; e. the consequences of disruption; and f. the time and resources required to restore, replace, transfer or discontinue it.
54. Critical Functions and Core Business Lines must be mapped to the legal entities,
personnel, systems, data, funding, assets, facilities, service providers and other resources necessary for their continued operation.
55. The Recovery Plan must explain how Critical Functions would be maintained or restored
during severe stress and the implementation of Recovery Options.
GOVERNANCE AND ESCALATION ARRANGEMENTS
56. The Recovery Plan must document the governance, escalation and decision-making
arrangements established under Chapter 5. The Recovery Plan must identify:
a. the persons and governance bodies responsible for monitoring, assessment, escalation, approval and implementation; b. reporting lines and escalation timelines;
c. decision-making and approval authorities;
d. internal and external communication requirements; e. supervisory notification requirements; and f. record-keeping arrangements.
57. The Recovery Plan must include an escalation map showing the process from the
identification of stress to the approval and implementation of Recovery Options.

RECOVERY INDICATORS
58. The Recovery Plan must establish qualitative and quantitative Recovery Indicators that
provide sufficient warning of deterioration to support timely escalation and decision￾making.
59. Recovery Indicators must be appropriate to the nature, scale and complexity of the
licensee’s business model and risk profile and must provide a sufficiently broad view of emerging financial and operational stress. At a minimum, and where applicable, the indicators must cover:
a. capital, calibrated with regard to any early warning threshold for capital set by the Supervisor; b. liquidity and funding, calibrated with regard to any early warning threshold for liquidity set by the Supervisor;
c. profitability;
d. asset quality; e. market conditions; f. operational and technological risk; and g. group or institution-specific risks.
60. For each Recovery Indicator, the Recovery Plan must clearly specify:
a. its purpose and calculation methodology; b. the applicable Early Warning Indicator(s) and Escalation Threshold(s);
c. monitoring and reporting responsibilities;
d. its relationship with the escalation framework; and e. any material limitations or assumptions.
61. The Recovery Plan must include a summary of Recovery Indicators and thresholds and
explain their relationship with the stress scenarios and Recovery Options.
62. A material breach of a Recovery Indicator or escalation threshold must be immediately
escalated to the designated Senior Management function or Recovery Planning Committee responsible for recovery planning and, where the severity or potential impact of the breach warrants, to the Board or relevant Board Committee. The breach must also be communicated to the Supervisor immediately.

STRESS SCENARIO ANALYSIS
63. The Recovery Plan must include a range of Severe but Plausible Stress Scenarios
sufficient to assess the licensee’s vulnerabilities, Recovery Options and Recovery Capacity. The scenarios must include, where relevant:
a. institution-specific stress; b. market-wide stress;
c. combined institution-specific and market-wide stress;
d. operational disruption, including cyber or natural-disaster events; and e. parent, group or cross-border stress.
64. Each stress scenario must describe:
a. the nature, severity, and progression of the stress; b. the principal assumptions, risk drivers, and transmission channels;
c. the expected impact on the licensee’s financial and operational condition;
d. the Recovery Indicators, thresholds, and escalation stages expected to be affected; and e. the Recovery Options that would be available under the scenario, including any material constraints on their feasibility, timing or effectiveness.
65. The scenarios must be sufficiently severe to place the licensee’s viability at risk in the
absence of timely and effective recovery action.
66. A licensee must, where appropriate, consider reverse stress testing to identify the
circumstances, events or combinations of stresses that could exhaust its Recovery Capacity, undermine the effectiveness of its Recovery Options, or render its business model unviable. RECOVERY OPTIONS
67. The Recovery Plan must identify a sufficiently broad and credible range of Recovery
Options that is appropriate to the licensee’s business model, vulnerabilities and relevant stress scenarios.
68. Recovery Options may address capital, liquidity, funding, profitability, operational
resilience, balance-sheet structure or other matters affecting viability. For each Recovery Option, the Recovery Plan must assess:
a. its purpose and expected impact;

b. the circumstances in which it may be used;
c. implementation steps and timeframes;
d. legal, regulatory or internal approvals; e. operational, financial and third-party dependencies; f. market and execution risks; g. the effect on Critical Functions and stakeholders; and h. material assumptions, limitations and constraints.
69. Recovery Options must be supported by realistic and prudent assumptions regarding
their feasibility, timing and effectiveness. In particular, Recovery Options must not depend on immediate or assured market access, unrestricted group support, favourable market conditions, asset disposals at non-distressed values, or Extraordinary Public Sector Support.
70. The Recovery Plan must distinguish between Recovery Options that are readily
executable and those whose implementation is dependent on additional preparatory actions, approvals, resources, or other enabling conditions. RECOVERY OPTION ASSESSMENT MATRIX
71. The Recovery Plan must include a Recovery Option Assessment Matrix that enables the
licensee to compare the feasibility, timing and expected effectiveness of its material Recovery Options. The matrix must summarise, at a minimum:
a. the scenarios in which each Recovery Option may be used; b. the expected financial and operational impact;
c. the estimated implementation timeframe;
d. key dependencies, prerequisites, and constraints; e. material execution risks; f. the level of implementation readiness; and g. material interactions, sequencing considerations or potential conflicts with other Recovery Options. RECOVERY CAPACITY ASSESSMENT
72. The Recovery Plan must include a scenario-specific Recovery Capacity Assessment
demonstrating the extent to which the licensee can restore its viability through the timely implementation of credible and feasible Recovery Options. The assessment must consider, at a minimum:

a. the expected financial and operational effect of each Recovery Option; b. implementation timeframes and sequencing considerations;
c. key dependencies, constraints and execution risks;
d. interactions, complementarities and potential conflicts among Recovery Options; e. the risk of double-counting expected benefits; and f. the sustainability of the licensee’s financial and operational position following implementation of the relevant Recovery Options.
73. Any Recovery Capacity that is contingent on unresolved preparatory measures, market
access, regulatory approval, group support or other material conditions must be separately identified and assessed as conditional and must not be treated as fully available until the relevant conditions have been satisfied.
74. The recovery capacity assessment must identify:
a. the licensee’s projected financial and operational position following implementation of the relevant Recovery Options; b. material assumptions, uncertainties, and limitations underlying the assessment; and
c. any shortfall between the Recovery Capacity available under the relevant
scenario and the capacity required to restore or maintain viability FUNDING, LIQUIDITY AND COLLATERAL
75. The Recovery Plan must identify the funding, liquidity and collateral-management
measures available to support the licensee’s continued operations and implementation of Recovery Options during severe stress. The Recovery assessment must consider, at a minimum:
a. available funding and liquidity sources; b. the availability and transferability of liquid resources;
c. collateral availability, eligibility and mobilisation capability;
d. funding concentrations and other material constraints; and e. the time required to obtain liquidity benefits.
76. Access to an ordinary standing central bank facility may be recognised where the
licensee is eligible to access the facility and has the operational readiness and eligible collateral necessary to access that facility.

77. Access to an ordinary central bank facility may support the licensee’s liquidity position
    during stress but must not be relied upon as a substitute for credible and feasible Recovery Options generated by the licensee.
78. The licensee must periodically assess and test its operational readiness to access
    relevant ordinary liquidity facilities, including its ability to identify, mobilise and, where necessary, pre-position eligible collateral within the required timeframe. IMPLEMENTATION PLAYBOOKS
79. The Recovery Plan must include an implementation playbook for each material Recovery
    Option. Each playbook must specify:
    a. the conditions under which the Recovery Option may be considered; b. the approvals and decision points required;
    c. the responsible persons and functions;
    d. the implementation steps, sequence and timeframe; e. required data, systems and resources; f. legal, operational and third-party dependencies; g. notification and communication requirements; h. material execution risks and contingency arrangements; and
    i. post-implementation monitoring.
80. Similar Recovery Options may be addressed through a common playbook, provided that
    any material differences in execution requirements, dependencies, approvals, sequencing or other option-specific considerations are clearly identified. COMMUNICATION STRATEGY
81. The Recovery Plan must include a communication strategy for managing internal and
    external communications during severe stress and the implementation of Recovery Options. The communication strategy must identify:
    a. relevant stakeholders; b. responsible persons;
    c. communication and approval procedures;
    d. notification requirements; e. available communication channels and templates; and f. arrangements for maintaining accuracy, consistency and confidentiality.

OPERATIONAL CONTINUITY
82. The Recovery Plan must describe how the licensee will maintain the continuity of its
Critical Functions while assessing, activating, and implementing Recovery Options.
83. The licensee must identify the personnel, systems, data, facilities, financial market
infrastructures, third-party services, shared services and other resources necessary to support the continued operation of its Critical Functions during severe stress.
84. The Recovery Plan must identify and assess material operational, legal, contractual,
technological, third-party, and other dependencies that could disrupt Critical Functions or constrain, delay or prevent the timely implementation of Recovery Options.
85. Operational-continuity arrangements supporting the recovery plan must be aligned with
the licensee’s business continuity, disaster recovery, operational resilience and outsourcing frameworks. DATA AND MANAGEMENT INFORMATION
86. The Recovery Plan must describe the data, systems and management-information
capabilities used to monitor Recovery Indicators, assess Recovery Options and Recovery Capacity, support decision-making and implement recovery measures. The licensee must identify:
a. the principal information and data required; b. the systems and reports through which the information will be produced;
c. material data or reporting limitations;
d. contingency arrangements where normal systems are unavailable; and e. information required by the Supervisor.
87. Recovery information must be sufficiently accurate, complete, timely and accessible to
support decision-making under severe stress.
PREPARATORY MEASURES AND IMPEDIMENTS
88. The licensee must identify and maintain preparatory measures necessary to support the
timely implementation of its Recovery Options. Preparatory measures must address material:
a. legal and contractual impediments; b. financial, funding and collateral constraints;
c. operational and technological dependencies;

d. staffing and expertise requirements; e. outsourcing and third-party dependencies; f. data and reporting limitations; g. group and cross-border dependencies; and h. communication requirements.
89. The licensee must maintain an up-to-date inventory of material impediments to the
implementation of its Recovery Options. The inventory must identify, at a minimum:
a. the Recovery Options affected; b. the nature and potential impact of each impediment;
c. the proposed remediation or mitigating measures;
d. the persons responsible for addressing the impediment; e. the applicable implementation timelines; and f. the current status of remediation.
90. Material unresolved impediments, together with the status and progress of related
remediation measures, must be reported to the Board and made available to the Supervisor upon request. GROUP AND CROSS-BORDER CONSIDERATIONS
91. Where applicable, the Recovery Plan must describe its relationship with the Group
Recovery Plan and identify any material intra-group and cross-border dependencies that could affect the licensee’s ability to implement Recovery Options or maintain Critical Functions.
92. Recovery Options that depend on group approval, funding, resources, guarantees,
shared services or other forms of group support must be clearly distinguished from Recovery Options that the DTI or standalone entity can implement independently.
93. The Recovery Plan must identify any material legal, regulatory, operational or financial
constraints that could limit the availability or transferability of group resources across entities or jurisdictions. Detailed requirements governing group and cross-border recovery planning are set out in Chapter 8. TESTING, REVIEW AND UPDATING
94. The Recovery Plan must summarise the licensee’s arrangements for testing,
independent review, remediation and periodic updating of the Recovery Plan in accordance with Chapter 9.

CHAPTER 7 – SUPERVISORY REVIEW, ASSESSMENT, AND ENGAGEMENT
95. The Supervisor will review Recovery Plans as part of its risk-based supervisory
framework to assess whether licensees have credible and effective arrangements to maintain or restore viability under severe stress without reliance on Extraordinary Public Sector Support.
96. The nature and intensity of the supervisory review will be proportionate to the DTI’s size,
complexity, systemic importance, risk profile, interconnectedness and cross-border activities.
97. A licensee must submit to the Supervisor, in the form and manner specified by the
Supervisor, the following:
a. a comprehensive Board-approved Recovery Plan at least once every three years and at such other times as the Supervisor may require; b. evidence of Board approval of each comprehensive Recovery Plan submitted under sub-paragraph (a) accompanied by an attestation, in the form specified by the Supervisor;
c. annually, a recovery preparedness update that includes, at a minimum:
i. a summary of material changes to the licensee, its risk profile, Critical
Functions, Recovery Indicators, Recovery Options, governance arrangements or other matters relevant to the Recovery Plan since the previous submission;
ii. any material changes to the Recovery Option Assessment Matrix;
iii. an updated Recovery Capacity Assessment;
iv. material findings arising from testing conducted during the period;
v. material findings from any independent review completed during the
period;
vi. the status of outstanding remediation measures, including progress
against agreed timelines;
vii. any material unresolved impediments to the implementation of Recovery
Options and the status of associated remediation;
viii. any material changes to Recovery Indicators, Early Warning Indicators or
Escalation Thresholds; and
ix. any other material matter that could affect the credibility, adequacy or
effective implementation of the Recovery Plan; d. the annual recovery preparedness update must be accompanied by an attestation, in the form specified by the Supervisor, confirming that:
i. the information submitted is complete and accurate in all material
respects;

ii. the Recovery Plan has been reviewed and remains current and credible,
having regard to the licensee’s financial and operational condition, risk profile and material changes during the period;
iii. material deficiencies, impediments and remediation actions have been
appropriately identified and reported; and
iv. the licensee remains operationally prepared to implement its Recovery
Options, subject to any limitations or qualifications disclosed in the submission; e. an updated Recovery Plan where a material change occurs that could significantly affect the credibility or effective implementation of the existing Recovery Plan; and f. any other supporting information required by the Supervisor.
98. A licensee must immediately notify the Supervisor of any material change that may affect
the adequacy, credibility or implementation of its Recovery Plan.
99. The Supervisor will assess whether the Recovery Plan:
a. is credible, feasible and actionable; b. is supported by effective governance and escalation arrangements;
c. is based on realistic assumptions and reliable information;
d. contains sufficient Recovery Options and Recovery Capacity to restore viability under relevant stress scenarios; e. addresses material operational, legal, financial and cross-border impediments; f. demonstrates adequate implementation readiness; and g. is regularly tested, reviewed and updated.
100. In conducting the assessment, the Supervisor may review relevant documentation and
methodologies, engage with the Board, Senior Management and control functions, and challenge material assumptions, estimates and implementation arrangements.
101. The Supervisor may determine that a Recovery Plan or Recovery Capacity Assessment
is inadequate where it:
a. is unlikely to restore viability under relevant stress scenarios; b. relies excessively on a limited number of Recovery Options;
c. depends materially on uncertain support or unresolved impediments; or
d. is not supported by credible analysis and evidence.
102. Where a material deficiency is identified, the Supervisor may require the licensee to
revise its Recovery Plan, strengthen its governance or operational preparedness,

undertake additional analysis, testing or independent review, develop additional Recovery Options, address identified impediments, or take other appropriate remedial action.
103. The Supervisor may establish remediation timelines, require progress reports and
conduct follow-up assessments.
104. The Supervisor may require, observe or participate in exercises designed to assess a
licensee’s recovery preparedness and implementation capability and may specify the scope and requirements of such exercises.
105. The Supervisor may engage with parent institutions and relevant home or host
supervisory authorities regarding recovery-planning arrangements affecting Jamaican operations, including through information sharing, supervisory colleges, crisis￾management groups and the assessment of Group Recovery Plans.
106. The Supervisor may request access to relevant Group Recovery Plan information
necessary to assess Jamaican operations. Where sufficient information is unavailable, the Supervisor may require supplementary Jamaica-specific documentation or a Standalone Recovery Plan.
CHAPTER 8 – GROUP AND CROSS-BORDER RECOVERY PLANNING
107. Recovery arrangements must adequately address the Jamaican operations and be
capable of implementation in Jamaica during severe stress, including stress originating elsewhere in the group. A Recovery Plan must address:
a. stress originating in Jamaica that may affect the wider group; and b. stress affecting the parent entity or wider group that may affect Jamaican operations.
108. Where a DTI forms part of a financial group, the Group Recovery Plan must distinguish
group-wide measures from the DTI-specific Recovery Measures.
109. The Group Recovery Plan must:
a. identify each Jamaican DTI, its significance to the group and the Jamaican financial system, and its material intra-group dependencies; b. distinguish group-wide measures from Jamaica-specific Recovery Measures;
c. identify Recovery Options available to the Jamaican DTI, including options
dependent on group resources or approval; d. establish local and group governance, escalation and decision-making arrangements;

e. assess the availability and transferability of capital, liquidity and operational resources; f. identify material entities within the group; and g. identify material impediments to implementing recovery measures in Jamaica.
110. The Supervisor may accept the ultimate parent Group Recovery Plan in place of a
separate local Recovery Plan where:
a. the Jamaican operations are adequately addressed; b. credible Jamaica-specific Recovery Measures are included;
c. local governance and decision-making arrangements are clearly established; and
d. the Supervisor has access to sufficient information to assess the recovery preparedness of the Jamaican operations.
111. Where paragraph 110 is not satisfied, the licensee must maintain supplementary
Jamaica-specific documentation or a Standalone Recovery Plan, as required by the Supervisor.
112. The Recovery Plan must distinguish between Recovery Options that:
a. may be implemented independently by the licensee; b. require parent or group approval or resources;
c. require regulatory or cross-border coordination; or
d. may become unavailable during parent or group stress.
113. Where group-dependent Recovery Options may be unavailable, delayed or insufficient,
the licensee must identify credible locally executable alternatives. Each Jamaica-specific Recovery Measure must be assessed in accordance with Chapter 6.
114. The Recovery Plan must identify material financial, operational and service
dependencies between the licensee and other group entities, including, where relevant:
a. capital, liquidity, funding and guarantees; b. treasury, risk-management and other shared services;
c. technology, data and communication systems;
d. staffing and specialist support; e. outsourcing and third-party arrangements; and f. correspondent banking, payment services and other critical services.

115. Intra-group support must not be treated as available unless there is a reasonable basis
     for concluding that it can be provided during severe stress. The assessment must consider:
     a. the financial capacity of the provider; b. contractual enforceability and required approvals;
     c. capital, foreign-exchange and other transfer restrictions;
     d. competing demands from other group entities; e. implementation time; and f. alternative measures where support is unavailable, delayed or reduced.

116. The Recovery Plan must establish clear arrangements for coordinating recovery-related
     assessment, decision-making, escalation, and implementation between the licensee and the wider group, including:
     a. local and group decision-making authority; b. approval, escalation and communication arrangements;
     c. decision-making and implementation timelines;
     d. engagement with the Supervisor; and e. procedures for resolving conflicts between local and group recovery objectives

117. The local Board and Senior Management remain responsible for ensuring that:
     a. the Jamaican operations are appropriately and sufficiently addressed in the Recovery Plan; b. material local risks, dependencies, constraints and Recovery Options are identified, understood, and kept under review;
     c. relevant Recovery Indicators and associated thresholds are monitored and
     escalated in accordance with the established governance framework; d. the licensee maintains the operational readiness necessary to implement Jamaica-specific Recovery Options and other recovery Measures; and e. material considerations relating to the continuity of Critical Functions and financial stability in Jamaica are appropriately taken into account in group recovery assessment and decision-making

118. Local management must, where practicable, participate in relevant group recovery
     planning, governance, testing, and simulation activities that could materially affect the Jamaican operations or the implementation of local Recovery Options.

119. A Group Recovery Plan must include Recovery Indicators and associated Escalation
     Thresholds that are appropriate to the nature, scale and risk profile of the Jamaican operations and capable of identifying material deterioration affecting those operations. Jamaica-specific Recovery Indicators must include, where material:
     a. local capital, liquidity, funding, profitability and asset quality; b. deposit outflows and foreign-currency liquidity pressures;
     c. reliance on intra-group funding, guarantees, shared resources or other forms of
     group support; d. deterioration in the financial condition of the parent undertaking or other material group entities that could affect the Jamaican operations; e. disruption to shared services, correspondent banking relationships, payment or settlement access; f. reputational or financial contagion arising elsewhere within the group; and g. material legal, regulatory or supervisory developments affecting the group or the Jamaican operations.

120. Breaches of Jamaica-specific Recovery Indicators must prompt timely assessment and,
     where appropriate, escalation through both local and group governance arrangements. The determination of any resulting preparatory or recovery action must have regard to the nature, severity and expected impact of the stress on the Jamaican operations and the wider group.

121. The Recovery Plan must establish clear and timely communication arrangements among
     the members of the group including all material entities in Jamaica, relevant group entities and the Supervisor to support effective coordination during emerging or actual recovery stress, including:
     a. responsible contact persons; b. communication and escalation triggers;
     c. reporting timelines;
     d. secure communication channels; e. information-sharing procedures; and f. material legal or confidentiality constraints.

122. A foreign bank branch must include in its recovery plan, at a minimum:
     a. a description of any recovery plan, recovery-planning information or related submissions made by the foreign bank to its home supervisory authority,

including the extent to which the Jamaican branch is addressed in those arrangements; and b. a written undertaking from the foreign bank, in a form acceptable to the Supervisor and duly authorised by the appropriate governing body of the foreign bank, confirming that the foreign bank:
i. remains responsible for all liabilities and obligations arising from its
branch operations in Jamaica and will ensure that such liabilities and obligations are met as they fall due, including under the stress scenarios considered in the Recovery Plan;
ii. will provide, in a timely manner, such financial, liquidity, operational,
technological and other support as may reasonably be required to support the recovery and continued operation of its Jamaican branch;
iii. will maintain arrangements necessary to facilitate the timely transfer or
provision of such support to the Jamaican branch, subject to applicable legal and regulatory requirements; and
iv. will promptly notify the Supervisor of any actual or prospective
circumstance that could materially constrain, delay or prevent its ability to provide the support contemplated under the undertaking.
123. The foreign bank branch recovery Plan must include a copy of the written undertaking
and demonstrate that the support contemplated under the undertaking is credible and capable of being provided under severe stress. At a minimum, the Recovery Plan must identify:
a. the nature and extent of the support available; b. the arrangements and decision-making processes for activating and providing the support;
c. the timeframe within which the support can be provided; and
d. any legal, regulatory, financial, operational, foreign-exchange, resolution or other impediments that may restrict or delay the provision of the support.
124. The foreign bank branch must ensure that the written undertaking remains valid,
effective and enforceable at all times. The undertaking must not be materially amended, withdrawn, terminated or otherwise restricted without prior notification to the Supervisor and, where required by the Supervisor, its prior approval.
125. The parent Recovery Plan, or supporting Jamaica-specific documentation, must
adequately address the recovery of the Jamaican operations, including:
a. the role and significance of the Jamaican branch; b. the effect of parent stress and recovery actions on Jamaican operations;
c. the escalation of stress arising in Jamaica;

d. local management and decision-making responsibilities; e. Recovery Indicators relevant to the branch; f. the continuity of Critical Functions; g. dependencies on parent funding, systems, personnel and shared services; h. local communication arrangements; and
i. material impediments to implementing recovery measures in Jamaica.
126. The Supervisor may require supplementary recovery-planning documentation where
warranted by the nature, scale, complexity, systemic importance or risk profile of the Jamaican branch.
127. The Recovery Plan must identify material impediments that may delay or prevent the
implementation of group or Jamaica-specific Recovery Measures. Such impediments may include:
a. legal, regulatory or contractual restrictions; b. required corporate or regulatory approvals;
c. capital or foreign-exchange controls;
d. tax or accounting consequences; e. confidentiality or information-sharing restrictions; f. operational, technological or third-party dependencies; g. competing group priorities; and h. limited market capacity.
128. Material impediments must be included in the inventory and remediation arrangements
required under Chapter 6.
129. A licensee must ensure that its recovery testing programme adequately assesses the
effectiveness and operational readiness of relevant group and cross-border recovery arrangements, including:
a. local and group escalation, governance and decision-making arrangements; b. communication and information-sharing channels;
c. the availability and timely accessibility of intra-group financial, liquidity,
operational or other support; d. the feasibility and execution of Jamaica-specific Recovery Measures; e. material operational, technological, legal and third-party dependencies; and

f. potential conflicts or constraints arising between local recovery objectives and wider group recovery priorities.
130. Where a licensee participates in a group-wide recovery exercise, it must assess whether
the exercise sufficiently tests the recovery arrangements, risks and dependencies relevant to the Jamaican operations and must identify and address any material gaps or limitations.
CHAPTER 9 – OPERATIONAL PREPAREDNESS, TESTING AND MAINTENANCE
131. A licensee must maintain its Recovery Plan as a current and operationally effective
framework capable of supporting timely decision-making and recovery execution during severe stress.
132. Recovery planning must be supported by ongoing operational preparedness, testing,
independent review, remediation, training and updating.
OPERATIONAL PREPAREDNESS
133. A licensee must maintain the personnel, systems, data, processes and resources
necessary to implement its Recovery Options within the stated timeframes. Operational preparedness must include:
a. current implementation playbooks; b. documented escalation and decision-making procedures;
c. communication and notification arrangements;
d. data and management-information capabilities; e. operational-continuity and contingency arrangements; f. appropriately trained personnel and designated alternates; and g. access to the financial, technological and operational resources required for implementation.
134. The licensee must periodically assess whether these arrangements remain adequate and
must address any material deficiency that could delay or prevent recovery execution. TESTING PROGRAMME
135. A licensee must establish a documented and proportionate testing programme to assess
the credibility, effectiveness and implementation readiness of its Recovery Plan. The testing programme must assess, where relevant:
a. governance and decision-making arrangements;

b. escalation processes and Recovery Indicators;
c. implementation playbooks and material Recovery Options;
d. communication and notification arrangements; e. operational continuity; f. data and management-information capabilities; g. funding, liquidity and collateral-mobilisation arrangements; and h. group and cross-border recovery arrangements.
136. Testing must assess operational execution and must not be limited to a review of the
Recovery Plan or supporting documentation.
TESTING METHODS
137. Testing may include:
a. tabletop exercises; b. scenario-based simulations;
c. governance and escalation exercises;
d. implementation-playbook exercises; e. communication exercises; f. data-production exercises; g. operational-continuity exercises; h. liquidity and collateral-mobilisation exercises; and
i. group or cross-border exercises.
138. The nature and scope of testing must reflect the licensee’s size, complexity, systemic
importance, risk profile, group structure and cross-border activities. TESTING OF RECOVERY OPTIONS
139. Material Recovery Options must be tested, to the extent practicable, to assess:
a. required approvals and decision-making timelines; b. implementation steps and sequencing;
c. data and resource requirements;
d. operational, legal and third-party dependencies; e. communication requirements; and

f. material execution risks.
140. Where full execution of a Recovery Option is impracticable, the licensee may use
simulations or other appropriate methods to test its implementation readiness.
141. A licensee that relies on access to an ordinary standing central-bank facility must
periodically test its operational readiness to access the facility, including its ability to identify and mobilise eligible collateral. GROUP AND CROSS-BORDER TESTING
142. A licensee that forms part of a financial group must test the group and cross-border
arrangements relevant to its Jamaican operations. Testing must assess, where relevant:
a. local and group escalation procedures; b. decision-making and approval timelines;
c. communication channels;
d. access to intra-group support; e. operational and shared-service dependencies; f. implementation of Jamaica-specific Recovery Measures; and g. conflicts between local and group recovery objectives.
143. Where the licensee participates in a group-wide exercise, it must determine whether the
exercise adequately addresses the Jamaican operations and must remediate any material gap identified. FREQUENCY OF TESTING
144. A licensee must conduct a comprehensive recovery-planning exercise at least once
every three years, or earlier where there is a material change in its business model, risk profile, financial condition, Critical Functions, Recovery Options or other circumstances that could materially affect the credibility or effectiveness of its Recovery Plan. Between comprehensive exercises, the licensee must keep the Recovery Plan current and undertake such testing, validation and remediation as is necessary to maintain recovery preparedness.
145. The licensee must periodically test material recovery options, communication
arrangements, operational-continuity arrangements, and other key components of the Recovery Plan, based on their significance and the risks associated with implementation. Testing must also be carried out, or the existing scope of testing expanded, following:
a. a material change to the Recovery Plan or the licensee’s operations;

b. the identification of a material deficiency;
c. a significant stress event;
d. a major change to a material Recovery Option; e. a material change to the financial group or cross-border arrangements; or f. a requirement imposed by the Supervisor. GOVERNANCE OF TESTING
146. Senior Management is responsible for ensuring that the testing programme is
implemented and that identified deficiencies are addressed.
147. The Recovery Planning Committee, or the governance body assigned equivalent
responsibilities, must oversee testing and monitor remediation.
148. The Board must receive reports on:
a. exercises conducted; b. material findings and deficiencies;
c. lessons learned;
d. remediation actions and timelines; and e. outstanding matters that may affect recovery preparedness. DOCUMENTATION OF TESTING
149. A licensee must maintain records of each material testing exercise, including:
a. the objectives and scope; b. the methodology and scenario tested;
c. the participants and responsibilities;
d. the assumptions used; e. the results and deficiencies identified; f. lessons learned; and g. required remediation.
150. Testing records must be sufficiently detailed to support internal oversight, independent
review and supervisory assessment.

REVIEW OF THE RECOVERY PLAN
151. The Recovery Plan and supporting recovery-planning framework must be subject to
periodic review by risk management, Internal Audit, Compliance, or another appropriately independent control function or a suitably qualified external party. The review must assess:
a. governance and accountability; b. Recovery Indicators and escalation arrangements;
c. stress scenarios;
d. the credibility and feasibility of Recovery Options; e. Recovery Capacity; f. implementation readiness and operational continuity; g. data and management-information capabilities; h. testing and remediation arrangements;
i. accuracy of data and information provided;
j. consistency with the licensee’s strategies; k. robustness of process and methodology used; and
l. the overall effectiveness of the Recovery Plan.
152. A review must be conducted:
a. following the initial implementation of the Recovery Plan; b. following a material change that may significantly affect recovery preparedness;
c. where a material deficiency is identified;
d. at least once every three years; and e. at such other times as may be required by the Supervisor.
153. For the purposes of paragraphs 151 to 152, a review may be conducted by the
licensee’s risk management, Internal Audit, Compliance, or by an independent reviewer, provided that the reviewer is independent of the development, maintenance and implementation of the Recovery Plan and possesses the requisite knowledge, experience and competence to conduct the review.
154. The Supervisor may, where considered necessary, require the licensee to obtain an
independent external review of the Recovery Plan.

DEFICIENCY IDENTIFICATION AND REMEDIATION
155. A licensee must maintain a process for identifying, assessing, prioritising and
remediating deficiencies arising from:
a. testing exercises; b. independent review or Internal Audit;
c. actual stress events;
d. supervisory assessment; and e. any other recovery-planning activities.
156. A material deficiency must be assessed having regard to its:
a. effect on the credibility or implementation of the Recovery Plan; b. potential impact on Critical Functions;
c. urgency and severity;
d. implications for the licensee’s Recovery Capacity; and e. any other matter relevant to determining the materiality of the deficiency.
157. A remediation plan must identify:
a. the deficiency and its cause; b. the corrective action;
c. the responsible person;
d. implementation milestones and timelines; e. interim mitigating measures; and f. remediation status.
158. Material deficiencies and remediation progress must be reported to the Board and made
available to the Supervisor.
ACTUAL STRESS EVENTS
159. Following a material stress event, the licensee must assess the effectiveness of its:
a. governance and escalation arrangements; b. Recovery Indicators;
c. communication arrangements;
d. management information;

e. operational continuity; and f. Recovery Options.
160. Lessons learned from the event must be reflected in the Recovery Plan, testing
programme, implementation playbooks and remediation arrangements.
TRAINING AND AWARENESS
161. A licensee must provide periodic recovery-planning training to Board members, Senior
Management and personnel with responsibilities under the Recovery Plan.
162. Training must be appropriate to each person’s responsibilities and must address, where
relevant:
a. governance and decision-making; b. escalation arrangements;
c. Recovery Indicators;
d. Recovery Options and implementation playbooks; e. communication requirements; and f. operational continuity.
163. Training must be updated following material changes to the Recovery Plan or lessons
learned from testing or actual stress events.
REVIEW AND UPDATE
164. A licensee must conduct a comprehensive review of its Recovery Plan at least once
every three years. An earlier review must be undertaken where there is a material change or event that could affect the licensee’s recovery preparedness or the credibility, feasibility or effective implementation of the Recovery Plan. Such circumstances may include, where relevant:
a. a material change to the licensee’s business model, risk profile or organisational structure; b. a merger, acquisition or material disposal;
c. a material change to the group structure or intra-group dependencies;
d. a significant operational disruption; e. a material outsourcing or technological change; f. a change to Critical Functions, Recovery Options or Recovery Capacity; g. a material regulatory or market development; or

h. significant findings from testing, independent review or an actual stress event.
165. Where a review identifies that changes to the Recovery Plan are necessary, the licensee
must update the Plan within a timeframe commensurate with the nature and significance of the change. Any material amendment to the Recovery Plan must be approved by the Board. CONTINUOUS IMPROVEMENT
166. A licensee must use testing results, independent-review findings, supervisory feedback,
emerging risks and lessons learned from actual stress events to improve its Recovery Plan and recovery preparedness. Improvements must be reflected, where relevant, in:
a. Recovery Indicators, early warning indicators, and escalation thresholds; b. stress scenarios;
c. Recovery Options and Recovery Capacity;
d. implementation playbooks; e. governance and escalation arrangements; f. operational-continuity arrangements; and g. data and management-information capabilities. RECORD RETENTION
167. A licensee must maintain complete and up-to-date records relating to its recovery
planning framework, including:
a. Recovery Plans and any material amendments; b. Board, Senior Management and other relevant governance approvals;
c. testing exercises and independent reviews, including material findings;
d. identified deficiencies, remediation measures and their status; e. recovery-planning training and awareness activities; and f. material recovery-related assessments, decisions, approvals and actions, including the basis for significant decisions
168. Records must be retained in accordance with applicable legal and regulatory
requirements and must be readily available to the Supervisor.