By James Dodson, Commercial Manager for Financial Services at Sabio Group
January 2025 will mark a new era for financial services, as entities across the EU must comply with the Digital Operational Resilience Act (DORA) – a sweeping regulation aimed at fortifying the sector against disruptions from cyber threats, tech failures and other operational risks.
To thrive in this soon-to-be-regulated digital wilderness, financial firms must prepare for the journey ahead. By mapping critical systems, packing cybersecurity essentials, planning for incidents, vetting third-parties, consulting regulatory guidance, and getting help from experts, financial entities can optimize their operational resilience.
Here are some key considerations:
- Chart Your Digital Terrain
Financial entities will need to thoroughly map their critical ICT systems, services and interconnections. This provides visibility into operational vulnerabilities.
- Assemble Your Cyber Tools
Robust cybersecurity measures will be crucial on this digital trek. Financial firms need strong access controls, network segregation, encryption and other safeguards against cyber risk. Regular cyber “check-ups” are also key.
- Pack an Incident Response Kit
Financial firms need detailed playbooks for incident response, disaster recovery, and resuming operations ASAP. Tests will verify effectiveness.
- Choose Third-Party Guides Wisely
Most financial services organisations will need to rely heavily on third-party tech providers. Careful due diligence is essential to ensure these guides can handle the rocky digital terrain ahead.
- Study Your Regulatory Trail Map
DORA requirements will vary across financial subsectors – so consulting the regulatory guidance will be key. Firms should review relevant rules to inform their compliance and resilience strategies.
- Take a Risk-based Approach
By evaluating surroundings for biggest risks, you can set priorities. DORA allows firms to take a risk-based approach and focus on shoring up high-impact, high-risk systems and services first.
- Get Backup from Experts
If you’re a financial firm trying to prepare and make sense of the upcoming regulations, then you can turn to experienced partners – such as our team at Sabio Group – to guide you on your DORA journey.
