Kynd urges financial firms to boost cyber resilience

London-based insurtech firm KYND is urging the financial services industry to prioritise embedding long-term cyber resilience into their operations as the EU's Digital Operational Resilience Act (DORA) comes into effect.

DORA aims to bolster the financial services sector against increasing cyber threats, with a key emphasis on managing third-party risk. It highlights the necessity of robust operational resilience frameworks, particularly relevant as recent statistics reveal that over fifty percent of British private businesses have encountered a cyber-attack in the last five years. Such attacks can significantly disrupt third-party services, highlighting the importance of comprehensive risk management strategies.

The recent cyber-attack on Blue Yonder, a major vendor in the food and retail sector, underlines the potential for widespread operational disruptions. This attack, although affecting the retail sector, serves as a cautionary tale for financial services firms that are similarly vulnerable. Their reliance on a network of third-party providers means a security breach can have a widespread impact, jeopardising essential services and making interconnected networks susceptible to further risks.

Andy Thomas, Chief Executive Officer of KYND, commented, "DORA isn't just about passing audits; it's about fostering a culture of vigilance and resilience in the face of ever-evolving cyber threats." He stressed that,"The financial services sector is a prime target, and compliance must be seen as a baseline, not the finish line, for digital security — the groundwork upon which a truly secure and resilient organisation is built. The stakes are too high for a reactive approach and DORA serves as a reminder that resilience isn't a one-time achievement but an ongoing commitment."

Thomas further elaborated, "It's about embedding risk management and agility into every facet of an organisation's digital attack surface. This shift in mindset from compliance to resilience is what will truly safeguard businesses, their clients and the broader financial ecosystem in today's dynamic digital landscape. At KYND, we're proud to be an integral partner in helping our clients navigate this journey with confidence."

DORA prescribes rigorous oversight and active testing to identify vulnerabilities before they can be exploited, signaling a shift from passive risk monitoring to active stress-testing of digital infrastructures. This approach aims to integrate security as a core component of business continuity strategies rather than treating it merely as a compliance measure.

Effective cyber resilience for financial firms is predicated upon gaining a comprehensive understanding of cyber risks, enhancing third-party risk management capabilities, and maintaining the capacity to counteract threats before they escalate. KYND supports this endeavour by offering transparent, real-time insights into cyber exposure at both the enterprise and portfolio levels.