Building Cyber Resilience in Financial Services

Cyber resilience has evolved from being a recommendation in the financial sector to an operational necessity, and now, a strict regulatory requirement. With the alarming rise in ransomware attacks and increasingly sophisticated cyber threats, the conversation has shifted from ‘if’ an organization will be attacked to ‘when’ and ‘how well’ it can respond. This article delves into how financial organizations can meet regulatory requirements, such as DORA, CORIE, and MAS TRM frameworks, while enhancing their resilience through tabletop exercises and technical simulations.

Understanding Regulatory Requirements

Financial institutions operate under specific regulatory frameworks depending on their regions. For instance, the European Digital Operational Resilience Act (DORA) and the MAS Technology Risk Management Guidelines (MAS TRM) in Singapore require institutions to simulate different attack scenarios, testing their ability to respond effectively. However, these regulations are not merely boxes to be checked—they must form part of an overarching, proactive risk management strategy.

Combining Technical and Human Efforts

Compliance isn’t solely about implementing technical safeguards; it requires a collaborative approach between technical teams and the broader organization. Technical simulations, such as Red Teaming exercises, are designed to evaluate the robustness of systems and infrastructures. Alongside these, tabletop exercises focus on organizational responsiveness, scenario awareness, and communication strategies. Together, they provide a comprehensive approach to assessing and improving resilience.

Modern Tools for Effective Simulations

Innovative platforms such as OpenAEV by Filigran streamline the simulation process by blending technical scenarios with organizational response drills. For instance, these platforms simulate realistic incidents by combining technical injects—such as ransomware alerts—with role-specific actions and communications. They enable institutions to prepare for complex situations, including ransomware attacks disrupting employees or data exfiltration during a breach.

“Simulations that incorporate real-world complexities improve an institution’s readiness, making responses both timely and effective.”

Automation and Efficiency

A major advantage of using an integrated solution lies in automation. From synchronizing participant data via IAM systems to sending post-simulation feedback questionnaires, these tools save precious time. This allows organizations to focus on the main goal: identifying gaps and enhancing true resilience.

Starting with Gradual Simulations

For institutions beginning their resilience journey, a phased approach works best. For example, dedicate one day to technical simulations focused on testing SOCs (Security Operations Centers) and existing technical controls. On a subsequent day, hold organizational simulations to examine the entire team’s response based on insights from the technical exercise. This step-by-step method encourages learning without overwhelming participants.

Repetition and Long-Term Planning

One-off exercises won’t cut it. For maximum effectiveness, financial institutions should incorporate continuous, recurring simulations in their long-term planning. Simulations spanning months can mimic complex scenarios, such as detecting a malicious ‘patient zero’ weeks into an ongoing attack.

By setting consistent timelines and increasing complexity over time, organizations ensure that their teams are perpetually prepared to withstand cyber threats and respond decisively. Continuity builds confidence, turning cyber resilience into a core aspect of how the organization operates.

Conclusion

Creating cyber resilience isn’t merely about meeting compliance—it’s about proactively securing organizational assets and significantly reducing risk. By leveraging advanced tools, integrating strategic planning, and conducting realistic, ongoing exercises, financial institutions can not only meet regulatory thresholds but foster true preparedness. As a partner to financial organizations, Lynx Intel offers tailored strategies and solutions to help you design a security and compliance blueprint that fits your needs—because in today’s world, readiness is everything.