In a recent article published by Finance Derivative, Rupert Colbourne, CTO of Orbus Software, shares his expert insights on how financial institutions can leverage enterprise architecture (EA) to navigate the complex regulatory landscape, including the Digital Operational Resilience Act (DORA) set to come into force in January 2025. With financial services under increasing pressure to modernize while remaining compliant, Rupert outlines how EA plays a pivotal role in managing risk, improving agility, and ensuring regulatory adherence.
Navigating DORA with enterprise architecture
DORA is poised to transform how financial institutions manage risk and resilience. The EU regulation requires firms to bolster their IT systems and operational frameworks to withstand cyber threats, ensuring continuity in times of crisis. EA provides a structured approach to carry out the due diligence required to meet DORA.
Addressing legacy technology challenges
As McKinsey reports, only five to ten cents of every dollar spent on technology provides additional business value, with the remainder being used to manage aging infrastructure and mandatory updates. This outdated infrastructure creates significant obstacles to resilience, particularly in financial services, as legacy systems create data silos and are difficult to integrate with modern applications. These challenges limit visibility into potential risks.
The core issue lies in the difficulty of mapping legacy infrastructure dependencies without a holistic view of the entire IT landscape. EA platforms can also be used to navigate this challenge, providing a comprehensive view and connecting business processes, data, applications, and technology. As firms prepare for DORA, these platforms become essential tools for mapping systems and risk scoring, helping financial institutions assess vulnerabilities and enhance operational resilience.
Future-proofing financial services through enterprise architecture
EA platforms go beyond simply aiding in the decommissioning of legacy systems. They map all IT assets and processes, ensuring that transformation initiatives are aligned with the organization’s strategic goals. This unified approach allows financial services firms to not only meet compliance requirements but also to drive long-term innovation and competitiveness.
Read the full article on Finance Derivative