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In the past few years, financial-services firms have had to navigate a series of unprecedented challenges. From geopolitical turmoil to cyberattacks and bank failures, these crises have not only impacted the firms themselves but also profoundly affected their third parties and suppliers.
Financial-services firms’ increasing reliance on third parties to perform critical operations is a trend with significant implications. This reliance has been a double-edged sword. On one hand, it has spurred rapid innovation and digitization within the sector. Conversely, it has opened these firms to a spectrum of new risks. Regulatory bodies, recognizing the critical nature of these developments, have responded with proactive measures.
DORA: Paving the way for digital risk mitigation
Numerous recently enacted regulations require financial-services firms to be operationally resilient. A prime example of this regulatory response in the European Union (EU) is the Digital Operational Resilience Act (DORA). Slated for implementation in January 2025, DORA represents a concerted effort…
