As cybersecurity breaches continue to rise globally, institutions handling sensitive information are particularly vulnerable. In 2024, the average cost of a data breach in the financial sector reached $6.08 million, making it the second hardest hit after healthcare, according to IBM’s 2024 Cost of a Data Breach report. This underscores the need for robust IT security regulations in critical sectors.
More than just a defensive measure, compliance with security regulations helps organizations reduce risk, strengthen operational resilience and enhance customer trust. It is not just about complying with the law; it also secures your company’s success.
While regional requirements may vary, there are reliable approaches that are consistently applied. One example is the European Union’s Digital Operational Resilience Act (DORA), which requires the financial sector to strengthen its defenses against cyber threats. It mandates that banks, insurers, investment firms and IT providers ensure systems can withstand disruptions without risking operations or data. With a compliance deadline of January 17, 2025, financial institutions need to act now or risk penalties for non-compliance.
Given the rapidly changing landscape of threats and regulations such as DORA, how will the role of centralized incident management in handling information and communication technology (ICT) incidents develop?
Function of security operations centers in financial institutions
A security operations center (SOC) continuously monitors IT systems in banks and insurance companies to detect and respond to ICT incidents and cyber threats at an ear ..
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