Navigating operational resilience regulation in cloud computing

Cloud computing is rapidly transforming the financial sector due to its efficiency gains, but migrating to the cloud also poses significant cybersecurity risks as cybercriminals increasingly target sensitive data. The PS21/3 regulation is set to enforce operational resilience and robust exit plans for firms moving away from managed service providers or on-premises solutions, while also stressing the need for thorough vetting of third-party cloud providers to ensure security. Financial institutions are encouraged to adopt multi-cloud architectures and conduct comprehensive vendor assessments to meet compliance standards and safeguard against downtime risks during transitions.