Mid-sized banks face a unique challenge in how to improve their Information and Communication Technology (ICT) risk management programs to meet the Digital Operational Resilience Act (DORA) requirements for resiliency against evolving digital threats.
These banks will need to make huge investments. Those will come in the human resources and IT infrastructure required to implement DORA and detailed technical plans to identify, measure, and mitigate ICT risks. These will involve everything related to cybersecurity, using robust incident response plans and 24/7 monitoring.
Traditionally, mid-sized banks have struggled to adapt to changes across a range of asset sizes. While larger banks have more resources, mid-sized banks have smaller budgets and teams that prevent them from fully complying with many regulations.
The technicalities of these standards add an additional layer of complexity. In many cases, confusion can arise as the regulations are unclear and difficult to read and implement for many banks.
In this blog, we’ll dive into unique issues across asset classes, providing an outline of how mid-market banks can tactically optimize their ICT risk management programs to meet regulatory requirements and create resilience to attack in a ever-changing digital age.
Regulatory Adherence Requirements:
Key Limitations:
The Digital Operational Resilience Act (DORA) offers mid-tier banks more business stability and provides a way to mitigate cyber risk and disruption. But mistakes and vagueness in the act can be compliance headaches.
One of the best ways for mid-tier banks to overcome these challenges is to be proactive with regulators. That means finding regulators, knowing what they expect, and executing accordingly. Standards and best practices will be a legal requirement and drive efficiency.
Operational risk is better managed with preparation. Modern technology investments like cybersecurity and data backups aren’t just a suggestion, it’s necessary. Smart integration will automate processes, mitigate impact, and enable compliance, giving your bank an operational rock-solid foundation.
By engaging with regulators, executing on international best practices, and taking the lead in technology, mid-size banks will not only have better chances of DORA compliance but also set themselves apart from their competitors in a rapidly changing financial landscape. It’s the future-forward thinking that can make your bank strong and competitive.
Learn more about Pentaho for Financial Service.
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