In Operational Resilience, which of the following is not an important measure of whether a Business Service can be considered Critical?

Step 1: Definition of a Critical Business Service in Operational Resilience

A Critical Business Service is one whose failure could result in severe harm to customers, financial

markets, or the firm’s viability.

Regulators (e.g., Bank of England, Basel Committee, PRMIA) define three primary factors for

identifying critical services:

Customer impact

Market integrity impact

Firm viability impact

Step 2: Why Option C Is Incorrect

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

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

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

Step 3: Why the Other Options Are Correct

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

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

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

PRMIA Risk Reference Used:

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

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

resilience factors.

Final Conclusion:

Risk appetite is an internal benchmark, not a measure of critical service designation, making Option

C the correct answer.