The resolution plan outlines how
management will prepare for the failure
of the firm, with procedures in place
to manage the process in a controlled
manner. The resolution plan serves as
a guide for regulators intervening in a
crisis which the financial institution will
not survive, thus providing an orderly
process for actions in the event the firm
or part of the firm needs to be unwound.
For example, the resolution plan must
identify the data that regulators will
need, to help them quickly segregate
non-essential operations from elements
that are systemically important
and need to stay in business.