The speed of regulatory change in the financial services sector is accelerating. These changes have had a huge impact on the financial services industry with several EU and local regulatory requirements for example from the MFSA coming into effect. In our discussions with our varied customer base compliance with regulations is becoming an ever-increasing area of concern. The MFSA for example have this year published that they will focus on more enforcement as a priority. There are also new regulations on the horizon in the form of the Digital Operational Resilience Act (DORA) which will enforce sweeping changes to the way that financial institutions in Malta will need to approach the way they look at cyber security.
Recent regulatory developments relating to technology risk impose various requirements for IT and cybersecurity risk management. These requirements raised relate to various areas of IT including:
- IT governance and strategic planning
- IT and cybersecurity risk management
- IT asset management
- Cloud computing
- IT outsourcing
- Incident management
As the use of IT in the financial industry accelerates alongside the increased regulation of IT use, it becomes increasingly difficult to apply outdated compliance methods to these systems. A great example of this is the adoption of cloud environments like Microsoft 365, Azure and AWS. How do you keep your data safe in the cloud? How do you stop data loss? How do you control the use of Shadow IT? These are all questions that the regulatory frameworks set out by the MFSA and other bodies aim to secure. Remember, whilst complying with regulations is a benefit in itself the effect of data loss can have a huge impact on your organisations reputation and reputation loss can be incredibly difficult to recover from.
What are the challenges with complex regulations, standards and guidelines? Looking at compliance requirements individually can make it difficult to implement solutions to cover all your regulatory requirements and quite often will result in conflicts of interest between relevant stakeholders. This can result in increased cost and complexity across the organisation. Compliance requirements need to be looked at holistically. Implementing too much change too aggressively will disrupt business activities.
We actively work with our customers to provide a timeline focused on Business Analysis leading on to the gradual adoption of your organisations IT compliance requirements. A plan for adoption also shows governing bodies that you are taking your cybersecurity and risk management seriously. IT security is an ever-evolving sphere of threats and new technologies. It is important to remember that your organisations security stance needs to reflect this; driving continuous improvement and yearly reviews is critical to keep on top of this ever-evolving landscape.
How can BMIT help?
Every client we work with requires different solutions. So, we tackle each need with our expertise in technology, business strategy and innovation.
We propose and develop intelligent, secure infrastructure solutions, help build your internal capabilities and identify opportunities to enhance your business potential through the application of innovative technologies. This ensures a greater level of business management and progression.
Want to learn more about the finance landscape regulatory tech requirements in Malta? Contact us and one of our experts will reach out and guide you accordingly.