Enterprise architecture leverages DORA compliance for business advantage
In the rapidly evolving digital landscape, financial services firms are under pressure to enhance operational resilience and comply with the EU's Digital Operational Resilience Act (DORA), set to come into force in January 2025.
DORA is a recognition of the increased dependence on digital applications and services, and the resilience risks this poses. Non-EU firms with EU operations must also comply with DORA to avoid penalties.
A centralised view of available data is integral for financial services firms to establish visibility of their resilience posture and guide future transformation in an intelligent manner. This is where Enterprise Architecture (EA) platforms come into play.
EA platforms offer a centralised repository of business capabilities, processes, applications, data, and technology assets. They provide a clear picture of resilience posture for DORA compliance. These platforms are unique in aligning technology and its management with business processes to ensure both keep in step with DORA and its requirements.
Rupert Colbourne, the Chief Technology Officer at Orbus Software, emphasises the importance of EA platforms. He states, "EA platforms stretch further than supporting the decommissioning of legacy technology. They provide a comprehensive solution for financial services firms preparing for DORA."
Legacy systems act as data silos and are tougher to integrate with modern applications to guarantee visibility of risk. EA platforms, however, are designed to map all IT assets and processes, guiding changes towards strategic objectives, such as DORA-readiness in financial services firms.
Moreover, as-is and to-be modeling through EA unlocks broader benefits for financial services firms, including planning for the utilization of cutting-edge AI technology. Comprehensive operational resilience can only be achieved with a centralised view of available data provided by EA platforms.
A recent study by the Financial Conduct Authority (FCA) found that 92% of UK financial service companies still rely on legacy technology, and 78% of their data is stored in on-premise infrastructure. This underscores the need for EA platforms, which can help establish a holistic view of an IT landscape that integrates with a wide spectrum of business processes, data, applications, and technology.
The Financial Stability Board (FSB) conducted a study in October 2024 on the use of Enterprise Architecture for preparation for the EU Digital Operational Resilience Act (DORA). The study highlighted the potential of EA platforms in helping financial services firms achieve DORA compliance.
Cloud migration, increased data analytics, new use cases of AI and Machine Learning have been widely adopted in the financial industry. EA platforms offer a holistic view of IT and business processes, essential for financial services firms to map the data that's the lifeblood of accurate and impactful AI output.
In conclusion, EA platforms are a crucial tool for financial services firms navigating the digital landscape and preparing for DORA compliance. They offer a comprehensive solution for managing digital risk, aligning technology with business processes, and ensuring operational resilience. As the digital world continues to evolve, the benefits of EA platforms, including the ability to plan for the utilization of cutting-edge AI technology, will become increasingly valuable.
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