In response to these challenges, the European Union (EU) has introduced a dedicated framework known as the Digital Operational Resilience Act (DORA) to safeguard the digital operation resilience for finance.
DORA represents a significant step towards enhancing the stability and security of the financial sector. Additionally, ServiceNow has developed comprehensive solutions to assist organisations in implementing and managing operational resilience effectively.
Understanding DORA and Its Purpose
The European Commission recognizes that the financial sector’s growing dependence on technology for the delivery of financial services makes it vulnerable to potential problems with underlying technology. These risks include cyber attacks, technology failures, and other operational disruptions.
At present, the management of cyber risks is only partially addressed at the European level, with general rules in place for financial services. However, these rules are often inconsistent and fragmented, leading to a need for a more cohesive approach to promote resilience.
The outcome of this concern is the establishment of DORA. This framework aims to promote and ensure the resilience of digital operations within the financial sector. DORA’s scope encompasses five fundamental pillars, each addressing critical aspects of operational resilience:
- Risk Management: Fostering a risk-based approach to identifying potential threats and vulnerabilities within digital operations, allowing for proactive mitigation strategies.
- Incident Reporting: Establishing a structured system for reporting and handling operational incidents, thereby facilitating rapid response and resolution.
- Operational Resilience Testing: Implementing regular and comprehensive testing to assess the strength and effectiveness of operational resilience measures.
- Third-Party Risk Management: Addressing the risks posed by third-party vendors and partners by establishing stringent risk management processes.
- Critical Body Framework: Developing a framework for establishing and maintaining the resilience of critical bodies responsible for financial services.
Operational Resilience as an Outcome
While DORA provides the necessary foundation for operational resilience, it is essential to recognize that operational resilience is not a solution; it is an outcome. The effectiveness of operational resilience depends on how organisations initiate and implement the process. Leveraging appropriate technologies and strategies is critical to achieving the desired outcome.
One crucial aspect of building operational resilience is the collection and organisation of foundational data. This includes information about the organisation’s infrastructure, assets, users, and critical business services. Understanding the data objects and information related to these assets lays the groundwork for a comprehensive operational resilience strategy.
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ServiceNow’s Integrated Platform for Operational Resilience
ServiceNow, a leading provider of digital workflow solutions, offers a powerful platform that streamlines operational resilience efforts for organisations. By integrating the five pillars of DORA into a single platform, ServiceNow provides a holistic solution for building and managing operational resilience.
The platform offers a wide range of functionalities, including:
- Identification of Critical Business Services: ServiceNow’s platform assists organisations in identifying and prioritising the most crucial business services, ensuring that resilience efforts are targeted effectively.
- Performance Monitoring and Assessment: Through assessments and control capabilities, organisations can monitor and measure the performance of their operational resilience initiatives, facilitating continuous improvement.
- Incident Management: The platform provides a structured incident reporting system, allowing organisations to respond promptly and effectively to operational disruptions.
- Third-Party Risk Management: ServiceNow enables organisations to manage and assess risks associated with third-party vendors and partners, ensuring a secure and resilient supply chain.
- Compliance Management: ServiceNow’s platform includes a robust Governance, Risk, and Compliance (GRC) solution that helps organisations manage risk and compliance across various areas, including IT, finance, and environmental regulations.
Benefits of ServiceNow’s GRC Solution
ServiceNow’s GRC solution addresses the pain points of traditional compliance management and brings significant benefits to organisations:
- Unified Interface: The GRC solution offers compliance managers and analysts a centralised workspace where they can efficiently manage policies, entities, and operational tracking.
- Real-time Compliance Monitoring: By leveraging the platform’s data and automation capabilities, compliance reports are continuously updated, eliminating the static nature of traditional compliance reporting.
- Automation and Efficiency: Manual processes involving emails and spreadsheets are replaced with automated tasks, making compliance management more efficient and repeatable.
- Flexibility in Control Mapping: The platform allows organisations to decide how granular they want to be in control mapping, making it easy to link controls to specific regulations and policies.
- Streamlined Attestation Process: Business users can access and complete compliance assessments through the platform, simplifying and enhancing the attestation process.
DORA & ServiceNow: Key Takeaways
- In the digital era, operational resilience is crucial for financial institutions to withstand cyber threats and disruptions effectively. The EU’s DORA framework and ServiceNow’s GRC solution offer a comprehensive approach to building and managing operational resilience.
- By integrating various tools and functionalities into one platform, ServiceNow empowers organisations to efficiently manage compliance and drive continuous improvement in their operational resilience efforts.
- Embracing such innovative solutions can enable financial institutions to thrive in the face of ever-changing technological and regulatory landscapes.
- Through DORA and ServiceNow’s advanced compliance management solution, organisations can build a robust operational resilience framework that ensures secure and reliable financial services for customers worldwide.
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