What is a major challenge for operational risk in Faster Payments systems?

A major challenge for operational risk in Faster Payments systems is continuous system availability 24/7/365. This is critical because Faster Payments are expected to provide instant transactions at any time and on any day, including holidays. The constant demand for system uptime poses significant operational risks, as any downtime can result in transaction failures, loss of customer trust, and potential financial losses for both institutions and their customers.

Maintaining continuous availability means that payment systems must be robust and resilient, with backup systems and processes in place to handle high volumes of transactions seamlessly. Any interruption in service could disrupt the payment experience, leading to customer dissatisfaction and regulatory scrutiny.

In contrast, managing human resources effectively, maintaining employee satisfaction, and reducing marketing costs, while important for overall business health, do not directly address the unique operational challenges presented by the need for constant availability in Faster Payments environments.