Data centres The European
Commission passed the DORA rules into law in response to the growing cyber crime challenge.
also in terms of protecting themselves from punitive regulatory actions or lawsuits should the worst happen. A totally compliant bank, for its part, will be able to demonstrate that it took every step possible to negate the threat, and likely avoid costly fines for lack of compliance.
$10.5tn The amount
cybercrime could cost the global economy by 2025. Cybercrime Magazine
24
Hope for the best, prepare for the worst With all financial entities needing to ensure compliance with DORA by January 2025, two years after the act came into force, the clock is now ticking for banks to ensure they are ready for a new era of enhanced security standards on the cloud. To prepare for DORA, institutions must immediately begin to take key steps. Firstly, understanding the regulations is of paramount importance. Institutions must analyse DORA’s implications, assessing IT infrastructure, security protocols and risk management practices to identify gaps. These sorts of comprehensive risk assessments are critical. Evaluating cyber threats, technological vulnerabilities and operational risks helps institutions develop effective mitigation strategies and allocate resources accordingly. Similarly, collaboration and information sharing are vital. Establishing partnerships with regulators, industry peers and cybersecurity experts fosters a collective approach, strengthening the sector’s overall resilience and ensuring EU and industry-wide uniformity. In a way, financial institutions that are otherwise competitors are, in fact, really in it together and, by communicating with one another and involving expertise from related third parties, a greater overall resilience against malicious actors can be developed and deployed.
This would inherently mean banks will need to open up their chequebooks and start investing in advanced technologies and infrastructure. Adopting state-of-the-art cybersecurity tools,
robust encryption techniques and leveraging AI and machine learning for real-time threat detection bolsters defences, and ensures that cloud-based solutions and secure data centres stay secure, keeping sensitive data beyond the reach of hackers. Companies also need to redouble their efforts in terms of compliance with reporting and incident notification requirements. Establishing robust incident response mechanisms and clear communication channels facilitates swift action and reporting to regulators. Regular audits and assessments evaluate and improve resilience measures, with internal and external audits helping to identify areas needing enhancement and ensure compliance with DORA’s requirements and evolving security standards. But one must always keep their eyes on the horizon and scan for emerging threats. No amount of regulation and legislation will be able to keep pace with rapidly evolving technologies and, as security improves, so too do the black hats’ techniques. Monitoring the evolving threat landscape is therefore crucial – and staying informed about emerging technologies, threat intelligence and regulatory updates helps institutions proactively address new risks. But, perhaps most important of all, European financial institutions need to see that compliance with DORA is not simply a box-checking exercise. Rather, they must embrace the challenge of the new rules head-on, transforming compliance into an opportunity for innovation and resilience. Their customers’ financial safety is in their hands, after all, and nothing should be more important to them than this. By decoding the regulations and investing in cutting-edge technologies, banks can leverage cloud computing as a powerful enabler of innovation and resilience. This transformative approach will safeguard the stability and security of the European financial sector and, at least for now, we’ll have DORA to thank for that. ●
Future Banking /
www.nsbanking.com
symbiot/
Shutterstock.com
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