The Prudential Regulation Authority’s (PRA) 2025 priorities outline clear expectations for international banks and investment firms operating in the UK, emphasizing governance, risk management, financial resilience, data integrity, and operational resilience.
These priorities are not just regulatory mandates—they represent the fundamental business challenges financial firms must address in an era of increasing economic uncertainty, technological transformation, and evolving cyber threats. At CLDigital, we provide intelligent, data-centric capabilities that empower firms to navigate these regulatory demands effectively, ensuring compliance while strengthening resilience.
Risk Management, Governance & Controls: Closing the Gaps
The PRA’s 2025 supervisory approach highlights a major concern: many firms lack integrated risk frameworks and struggle to proactively identify and manage complex risks—especially those arising from geopolitical instability, AI adoption, and evolving financial models.
CLDigital enables firms to embed risk governance into their core business strategy with:
- Enterprise-Wide Risk Management Capabilities – A unified risk register, enabling firms to identify, categorize, and monitor risks across business functions, including counterparty credit risk (CCR) exposure and emerging AI-driven risks.
- Advanced Scenario Analysis & Stress Testing – PRA expects firms to apply stress testing and scenario modeling to risk strategy. CLDigital enables firms to leverage scenario modeling to strengthen decision-making frameworks, ensuring alignment with regulatory expectations and providing actionable insights for risk mitigation.
- Board-Level Governance & Control Oversight – Many firms face risk culture deficiencies leading to weak control environments. CLDigital’s real-time compliance tracking capabilities help boards and senior management assess control effectiveness, audit findings, and regulatory adherence.
PRA’s Expectation: Firms must close governance gaps and proactively adapt risk frameworks to regulatory and economic pressures.
CLDigital’s Advantage: Real-time risk governance, automation of compliance tracking, and AI-enhanced scenario analysis—ensuring firms meet and exceed PRA’s expectations.
Operational Resilience: Are You Ready for March 2025?
By March 2025, firms must demonstrate that their Important Business Services (IBS) remain within impact tolerances during severe disruptions. The PRA expects clear resilience plans, cyber recovery strategies, and third-party oversight mechanisms.
Where Firms Struggle Today
- Legacy systems create single points of failure – Many firms rely on outdated risk management solutions and platforms not designed to handle modern operational challenges or complex interdependencies. These legacy systems lack the flexibility and scalability needed to adapt to dynamic risk environments, making them highly vulnerable to disruptions and unable to support comprehensive risk mitigation strategies.
- Third-party dependencies lack robust oversight – Firms often depend on external service providers without effective monitoring or governance. This can result in disruptions if third-party vendors face financial instability, operational failures, or security breaches, which directly impact the firm’s resilience.
- Cyber recovery plans are untested or outdated – With the cyber threat landscape constantly evolving, many firms’ recovery plans are either outdated or untested against current threats. This leaves firms unprepared to detect, respond to, and recover effectively from sophisticated cyberattacks, increasing the risk of prolonged operational disruptions.
How CLDigital Helps
- Impact Tolerance Mapping & IBS Modeling – Our platform enables firms to map critical business services, define tolerances for disruptions, and integrate these resilience indicators into real-time dashboards.
- Automated Incident & Crisis Response Management – Operational disruption planning is a regulatory expectation. CLDigital’s incident response automation ensures structured crisis management and continuous improvement through real-world testing.
- Third-Party Risk & Supply Chain Resilience – The PRA warns firms about the hidden risks in outsourced services. CLDigital offers end-to-end supplier risk monitoring, performance tracking, and automated contract compliance validation.
PRA’s Expectation: Firms must prove they can sustain operations through disruptions and monitor third-party resilience risk effectively.
CLDigital’s Advantage: Embedded IBS impact monitoring, automated crisis response, and third-party risk intelligence capabilities.
Data Integrity & Risk Analytics: Addressing Regulatory Gaps
The PRA identifies poor data management as a root cause of governance failures and risk mismanagement. Firms must enhance data accuracy, regulatory reporting, and analytics capabilities to meet 2025 requirements.
How CLDigital Enhances Data Governance & Analytics
- Automated Data Quality Monitoring – Ensuring regulatory submissions are complete, accurate, and compliant with PRA’s evolving data expectations.
- Integrated Risk & Performance Analytics – Firms must improve how they aggregate risk data. CLDigital provides real-time risk modeling, scenario visualization, and predictive analytics.
- AI-Enhanced Regulatory Compliance Frameworks – The PRA expects firms to adopt AI-driven tools responsibly. CLDigital integrates AI-powered data validation and automated compliance workflows that align with the PRA’s digital transformation objectives.
PRA’s Expectation: Firms must enhance data aggregation and analytics, and AI-driven
CLDigital’s Advantage: Automated compliance data validation, advanced risk analytics, and predictive risk intelligence modeling.
Financial Resilience & Liquidity Risk: Proactive Stress Testing
The PRA has warned firms about rising liquidity risks, regulatory changes in the Bank of England’s monetary framework, and the importance of capital stress testing. Many firms still lack structured liquidity forecasting capabilities.
CLDigital’s Financial Resilience Capabilities
- Liquidity & Capital Stress Testing – Aligning with PRA’s expectations for forward-looking financial risk assessment.
- Balance Sheet Scenario Modeling – Helping firms analyze profitability, funding risks, and capital adequacy in a rapidly changing financial landscape.
- Regulatory Compliance for Basel 3.1 Readiness – Even with Basel 3.1 delays, firms must prepare for reduced transitional periods. CLDigital’s compliance frameworks help firms stay ahead of regulatory changes.
PRA’s Expectation: Firms must adopt forward-looking stress testing and liquidity management.
CLDigital’s Advantage: Scenario-based financial modeling, liquidity stress testing, and real-time balance sheet analytics.
Trusted by FCA- & PRA-Regulated Firms
A growing number of firms leverage CLDigital’s governance, risk, and resilience capabilities to:
- Automate PRA & FCA compliance workflows
- Strengthen risk governance and oversight frameworks
- Integrate operational resilience testing with real-time analytics
- Reduce the cost and complexity of regulatory compliance
Our platform is built to empower firms, ensuring proactive compliance with the PRA’s evolving regulatory landscape while embedding resilience, agility, and governance at every level.
Final Thoughts: Why Financial Firms Must Act Now
The PRA’s 2025 priorities demand action—not reaction. Firms that invest in risk governance, operational resilience, and financial stress testing will meet regulatory expectations and gain a strategic advantage in a complex financial environment.
At CLDigital, we don’t just help firms comply—we enable them to thrive.
- Is your firm ready for the March 2025 operational resilience deadline?
- Are your governance, risk, and compliance strategies aligned with PRA expectations?
- Do you have real-time risk analytics for stress testing and liquidity management requirements?
Let’s talk. Contact me at ian.wilson@cldigital.com to explore how CLDigital can help your firm stay ahead of regulatory change.
By Ian Wilson, Senior Vice President – GRC Business Development EMEA