New Broadridge Whitepaper Highlights Operational Resilience and DORA Compliance Challenges Facing Global Financial Services

Rhea-AI Summary

Broadridge Financial Solutions (NYSE: BR) has released a new whitepaper addressing the urgent need for financial services firms to enhance operational resilience in response to the EU's Digital Operational Resilience Act (DORA) and other global regulations. The paper, titled 'Building Resilience Across Borders,' highlights the extensive regulatory expectations and necessary preparations for compliance.

Key findings include:

• Operational resilience is a worldwide regulatory priority
• DORA mandates significant changes to operational risk management
• Firms must begin compliance preparations now for the January 2025 enforcement date
• Noncompliance may result in stringent enforcement actions
• Increased focus on third-party service providers and internal IT systems

The whitepaper emphasizes the critical importance of operational resilience in strengthening trust and security against growing cyber risks and disruptions.

Positive

• Release of a comprehensive whitepaper on operational resilience, potentially positioning Broadridge as a thought leader in the industry
• Potential increase in demand for Broadridge's services as firms seek to comply with DORA and other global regulations

Negative

• No specific financial or business performance metrics provided
• No mention of how this regulatory focus might impact Broadridge's own operations or compliance costs

EU regulatory deadline requires a prompt industry response; globally, operational resiliency shortfalls can be addressed and scaled via mutualized services

NEW YORK and LONDON, Sept. 4, 2024 /PRNewswire/ -- Broadridge Financial Solutions, Inc. (NYSE: BR), a global Fintech leader, released a new whitepaper focused on the imperative need for financial services firms to enhance their operational resilience in reaction to the European Union's Digital Operational Resilience Act (DORA) and other global regulations. This comprehensive whitepaper, titled 'Building Resilience Across Borders: A holistic approach to global operational resilience and navigating the regulatory maze,' highlights the extensive regulatory expectations and the strategic preparations necessary for compliance.

"Now more than ever, operational resiliency is a critical priority for financial firms around the world, driven by a fundamental need to strengthen trust and security in response to the growing risk of cyberattacks and disruptions," said Mike Sleightholme, President of Broadridge International. "The broad and in-depth scope of DORA mandates a significant transformation in risk management frameworks, policies and governance structures relating to both inhouse and third-party systems, posing urgent challenges that the industry needs to address ahead of the January 17, 2025 deadline."

"Regulators are emphasizing and prioritizing operational resilience, yet there is a growing sense that many firms remain far from ready, exposing themselves not only to operational resiliency risk but also to regulatory compliance risk," said Virginie O'Shea, Founder of Firebrand Research, who worked with Broadridge to develop the whitepaper. "Firms must act now to mobilize their DORA action plans, including a detailed assessment of their critical systems and services, and an impact analysis to ensure they can deliver a compliant operating model and meet recovery and reporting objectives aligned to DORA's requirements."

Key findings from the whitepaper include:

• Worldwide regulatory priority: Besides the EU, regions such as the US, Canada, the UK, South Africa, Japan, Hong Kong, Singapore and Australia are also tightening their operational resilience regulations.
• Global scope and impact of DORA mandates significant changes to operational risk management and resilience across nearly all areas of financial services, impacting firms operating in the EU irrespective of where their headquarters and third-party suppliers are located.
• Clock is ticking, firms must begin their DORA compliance preparations now, as the January 2025 enforcement date necessitates extensive system reviews and data reporting readiness. Firms must focus resources on mobilising their action plan, potentially leveraging mutualized shared services.
• Watch out for regulatory enforcement, noncompliance with operational resilience mandates is likely to result in stringent enforcement actions. Firms need to start prioritizing cybersecurity and risk reduction today.
• Increased regulatory focus on third-party service providers and internal IT systems highlights the need for thorough operational reviews and compliance assurance.

To download the full whitepaper, click here.

About Broadridge

Broadridge Financial Solutions (NYSE: BR), is a global technology leader with the trusted expertise and transformative technology to help clients and the financial services industry operate, innovate, and grow. We power investing, governance, and communications for our clients – driving operational resiliency, elevating business performance, and transforming investor experiences.

Our technology and operations platforms underpin the daily trading of more than $10 trillion of equities, fixed income and other securities globally. A certified Great Place to Work®, Broadridge is part of the S&P 500® Index, employing over 14,000 associates in 21 countries. For more information about us, please visit www.broadridge.com.

Broadridge Contacts:
Investors:
Edings Thibault
Head of Investor Relations, Broadridge
broadridgeir@broadridge.com 

Media:
Gregg Rosenberg
Global Head of Corporate Communications
Gregg.Rosenberg@broadridge.com 

 

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SOURCE Broadridge Financial Solutions, Inc.

FAQ

What is the deadline for DORA compliance according to Broadridge's whitepaper?

According to Broadridge's whitepaper, the enforcement date for DORA compliance is January 17, 2025.

What are the key findings of Broadridge's (BR) whitepaper on operational resilience?

Key findings include: operational resilience is a worldwide regulatory priority, DORA mandates significant changes to risk management, firms must prepare now for the 2025 deadline, noncompliance may result in enforcement actions, and there's increased focus on third-party providers and internal IT systems.

How does DORA impact financial firms outside the EU, according to Broadridge (BR)?

According to Broadridge's whitepaper, DORA impacts firms operating in the EU regardless of where their headquarters and third-party suppliers are located, indicating a global scope and impact.

What does Broadridge (BR) suggest firms should do to prepare for DORA compliance?

Broadridge suggests firms should mobilize their DORA action plans, including a detailed assessment of critical systems and services, and an impact analysis to ensure a compliant operating model and meet recovery and reporting objectives aligned with DORA's requirements.