In Operational Resilience, which of the following is not an important measure of whether a...

ACritical Business Serviceis one whose failure could result insevere harm to customers, financial markets, or the firm’s viability.

Regulators (e.g.,Bank of England, Basel Committee, PRMIA) definethree primary factorsfor identifying critical services:

Customer impact

Market integrity impact

Firm viability impact

Risk appetite is an internal business decision, not an external measure of criticality.

A servicecan be critical even if its disruption stays within risk appetite.

Criticality is based on external impacts, not just internal risk limits.

Option A ("Material customer detriment")→Correctas customer harm defines critical services.

Option B ("Harm to market integrity")→Correctas market stability is a regulatory priority.

Option D ("Threaten firm viability")→Correctas critical services often determine business survival.

Step 1: Definition of a Critical Business Service in Operational ResilienceStep 2: Why Option C Is IncorrectStep 3: Why the Other Options Are Correct

PRMIA Operational Resilience Framework– Defines criteria for critical business services.

Basel Committee Operational Risk Guidelines– Highlights customer, market, and firm viability as resilience factors.

PRMIA Risk References Used:

Final Conclusion:Risk appetiteis an internal benchmark, not a measure ofcritical service designation, makingOption C the correct answer.