resolution frameworks

Resolution frameworks are structured guidelines that organizations, particularly financial institutions, use to handle situations where they face severe financial difficulties or risk of collapse. These frameworks outline the steps for orderly recovery or wind-down, ensuring that the organization can stabilize or exit the market without causing widespread economic disruption. They typically include planning for potential failures, coordinating with regulators, and protecting stakeholders, such as customers and taxpayers. Essentially, resolution frameworks aim to manage crises effectively, minimizing negative impacts on the economy and society.