Operational Resilience in the EU: Addressing Regulatory Challenges

This document is a technical report that discusses the evolving concept of operational resilience within the European Union, particularly in the context of the financial industry. It outlines the necessity for organizations to protect core business services during operational stress and addresses the complexities of operational risks associated with third-party service providers. The report details two key regulatory frameworks, the Digital Operational Resilience Act (DORA) and the Network and Information Security Directive (NIS2), which aim to mitigate cybersecurity risks. It highlights the need for standardized contractual terms and accredited audit regimes to streamline compliance and reduce costs for financial entities. The report also critiques the proposed EBA Guidelines, which expand the scope of regulatory requirements, potentially increasing the compliance burden on financial institutions and their suppliers. The conclusion emphasizes the importance of harmonizing standards and simplifying reporting requirements to enhance operational resilience and competitiveness in the EU.