Think-tank JWG urges Financial Services firms to collaborate with suppliers to close infrastructure gaps as fines loom
London, UK – 13 September, 2022 – JWG, the trusted financial services regulatory intelligence company, has announced the publication of a ground-breaking research paper ‘Managing Digital Infrastructure Risk: a collaborative path to financial services safety’.
New regulation will fundamentally change the landscape for the biggest tech companies–particularly cloud providers.
By 2025, overlapping requirements to mitigate operational resilience threats (UK PS6/21,DORA); control third party services (outsourcing, ESG Scope 3 emissions); and improve technology governance (AI, cyber, privacy, data), will require unprecedented transparency and assurance from third-party technology providers. As reported in July, the EU and UK have led the way with many obligations becoming law in 2023.
To comply, firms will need new to bring risk management silos together and require unprecedented transparency and assurance from their third-party technology providers by 2025. Vendors unable or unwilling to provide their clients with the controls they require may lose business.
JWG’s CEO, PJ Di Giammarino, commented: “This paper is a wake-up call for firms that need to define ‘what good looks like’ before massive fines start to land. As regulators take a hard look at the supply chain, a holistic and collaborative approach between firms and suppliers is required.”
Francis Gross, Senior Advisor, European Central Bank speaking in a personal capacity commented “JWG’s paper suggests that tech-age safety will require new standards and infrastructures faster than they could emerge from competitive markets. One is left with the feeling that industry and the regulators will need to learn, fast and together, what of technology is for competition and what is best for collective action, beyond today’s silos. “
Richard Harmon, VP & Global Head of FS, Red Hat said “This JWG study outlines the transition our industry is undergoing with digital infrastructure risk management moving from the back office to the board room. Now more than ever, the board will need to spend time understanding the interdependencies between business models, regulatory requirements, technology and the banks’ supply chain.”
JWG will create a task force to solicit comments on this paper from regulators, regulated financial institutions, and suppliers to shape future plans. Please contact firstname.lastname@example.org if you would like to be involved.
The paper, along with a companion IT guide to Operational Resilience is available free of charge to JWG registrants.
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We are also hosting a dinner in London on 2 November. Please contact Corrina.email@example.com if you would like more information.
About the research
JWG is an independent, pioneering market intelligence company who has been working with firms, technologists, and regulators since 2006, to help the industry comply with the ever-changing regulatory landscape.
This research report is based on a variety of global sources including intelligence gained from JWG’s Risk Control for a digitized financial sector report, from analysis of the viewpoints presented at the JWG November 2021 Annual RegTech Conference, the JWG RegCast series, survey results and feedback from the 120+ institutions that have attended JWG workshops and events. The report also includes global analysis from JWG’s RegDelta system and RegDelta Radar Services.