In today's fast-evolving financial and technological environment, operational resilience is no longer a back-office concern—it's become a critical strategic priority. As industries face escalating challenges such as increased outages, ransomware threats, and tightening regulatory requirements, the need for robust systems capable of withstanding disruptions has never been more urgent. From the European Union's Digital Operational Resilience Act (DORA) to local adaptations in Asia such as HKMA’s OR-2, ESPA in Japan and APRA CPS 230 in Australia, these regulations are not just compliance mandates—they’re setting the tone for the future of operational excellence.

This article distills key insights from a recent roundtable discussion among financial industry leaders in Singapore. The focus? How organizations are building resilience into their operations while navigating an increasingly interconnected and regulated world. Below, we explore the major themes and actionable takeaways that emerged from the conversation.

The Shifting Paradigm of Operational Resilience

From Reactive to Proactive Approaches

The traditional approach to operational resilience has often been reactive, with disaster recovery plans acting as a safety net for unexpected disruptions. However, as one participant aptly noted, "The legacy systems were designed without resilience in mind." Today, organizations are shifting toward proactive measures, embedding resilience at the architectural level. This approach requires a significant cultural shift—from viewing resilience as a contingency to treating it as a core component of system design.

Key changes include:

• Modernizing Monolithic Systems: Many firms are re-architecting legacy systems to break them into modular, microservices-based platforms. This enables faster recovery times and greater adaptability to incidents.
• Real-Time Data Synchronization: Near-real-time data replication ensures minimal disruption during outages, with some institutions adopting advanced solutions like "immutable snapshots" for faster rollback during crises.

Regulatory Pressures as a Catalyst for Change

Navigating DORA and Local Regulations

The EU’s DORA regulation, which came into effect on 17^th January 2025, is a substantial driver of change. It mandates strict standards for cybersecurity, third-party risk management, and operational continuity. But Europe isn't alone: jurisdictions in Asia, including Singapore, Japan, Hong Kong and Australia, are implementing similar frameworks, each with unique local adaptations.

Challenges discussed included:

• Balancing Global and Local Requirements: Multinational organizations often face overlapping regulatory demands. For example, while DORA applies to European-regulated entities, its principles are influencing global operations through client expectations.
• Third-Party Risk Management: Regulators are emphasizing not only direct suppliers but also the extended supply chain. Firms must now oversee the resilience of their vendors' vendors—a layered complexity demanding both diligence and technological tools.

Actionable Takeaway: Firms should adopt a unified, enterprise-wide risk management framework that can adapt to both global and jurisdiction-specific regulations. Partnering with technology firms familiar with cross-jurisdictional requirements was highlighted as a practical solution.

The Rise of Institutional and Client Expectations

Operational Resilience as a Competitive Advantage

Beyond regulatory compliance, operational resilience is increasingly seen as a differentiator in attracting institutional clients. Investors, especially in the asset management and hedge fund space, now demand detailed BCP (Business Continuity Plans) as part of their due diligence.

One participant shared, "What used to be a checkbox item is now front and center in RFPs." This growing pressure is forcing firms to go beyond rudimentary backup systems and implement sophisticated solutions such as redundant trading platforms and near-real-time transaction recovery tools.

Insights from the Discussion:

• Investment in Next-Gen Architectures: Some firms are transitioning to dual-active environments where systems can switch seamlessly between primary and secondary infrastructures. This approach minimizes downtime and increases operational transparency.
• Consultative Partnerships: Many organizations are leveraging professional service teams to conduct end-to-end inventory assessments, identify bottlenecks, and align processes with evolving industry benchmarks.

Technology-Driven Resilience: Challenges and Opportunities

Legacy Tech vs. Modern Solutions

Managing legacy technology was cited as one of the most significant obstacles to achieving operational resilience. Older systems often struggle to meet the high availability standards demanded by regulators or clients.

Strategies highlighted included:

• Determining Cost-Benefit Trade-Offs: Deciding whether to refactor legacy systems or replace them entirely depends on the cost of modernization versus the business risk of maintaining outdated platforms.
• Adopting Cloud-Native Architectures: Cloud technologies—especially those offering multi-region redundancy and scalability—are becoming a cornerstone of resilience-driven strategies.

Cybersecurity: A Key Pillar of Resilience

With ransomware and cyberattacks on the rise, cybersecurity measures are integral to operational resilience. Participants discussed various strategies, including:

• Penetration Testing and Vendor Certification: Independent testing of systems is now an expectation, especially for critical financial infrastructure.
• Immutable Data Storage: Several firms are exploring immutable storage solutions that allow them to recover systems to a precise point in time, ensuring data integrity even after a breach.

Despite advancements, challenges remain. We are only as strong as our weakest link.

The Path Forward: Building Resilient Enterprises

As industries grapple with these challenges, a few clear priorities emerge:

• Embed Resilience in Design: Organizations must move away from viewing resilience as an afterthought and instead embed it into the DNA of their systems and processes.
• Engage in Collaborative Ecosystems: Whether through partnerships with technology providers or cross-industry forums, collaboration is essential for sharing best practices and achieving collective resilience.
• Balance Innovation and Regulation: While regulatory compliance is non-negotiable, firms should use these mandates as an opportunity to innovate and future-proof their operations.

Conclusion: Turning Resilience into Opportunity

Operational resilience is no longer just about managing risk; it’s about creating opportunity—whether by meeting heightened client expectations, navigating an increasingly complex regulatory landscape, or leading the industry in adopting cutting-edge technology. Resilience isn’t just about surviving disruption; it’s about thriving in a volatile world.

Moving forward, organizations must continue to focus on strategic investments, collaborative partnerships, and regulatory preparedness to stay ahead. The journey to resilience may be challenging, but the rewards—for business continuity, client trust, and competitive differentiation—are well worth the effort.

Call to Action: How prepared is your organization to handle the next wave of resilience challenges? Engage with strategic partners like Broadridge, assess your readiness, and start building a framework that doesn’t just comply but excels. Let’s shape the future of resilient enterprises together.