The European Supervisory Authorities have published their first annual overview of major ICT-related incidents in the EU financial sector under the reporting framework of the Digital Operational Resilience Act.

The report is issued by the European Banking Authority, the European Insurance and Occupational Pensions Authority, and the European Securities and Markets Authority.

DORA Review Finds Cross-Border ICT Risk

The report consolidates incident reporting requirements under DORA and aims to standardise how financial entities classify, manage, and report ICT-related disruptions across the European Union.

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According to the findings, ICT risks are increasingly cross-border and interconnected. The report stated that “ICT risks are increasingly borderless and interconnected.” It added that shared digital infrastructure and outsourced services are contributing to wider operational risk transmission across markets.

Financial firms in the EU reported 3,383 major ICT-related incidents. Around one third had cross-border effects, reflecting greater interconnectedness in financial systems. The authorities noted that the direct impact on customers and transactions was generally limited.

AI Raises Future Financial Cyber Risk

System failures and external events were identified as the main drivers of disruption. The report highlighted the importance of third-party risk management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term, oversight of outsourced services, and coordination with providers during incident response and recovery.

Cybersecurity-related incidents accounted for about 10% of the total. While the share was relatively small, the report warned that firms must maintain strong cybersecurity Cybersecurity Cybersecurity is a blanket term that refers to the protection of computer systems and networks from the theft.More broadly speaking, cybersecurity can also represent countermeasures against damage to hardware, software, or electronic data, as well as from the disruption or misdirection of the services they provide.It was not long ago that the term cybersecurity not exist as it was first used in 1989. In today’s vernacular cybersecurity, refers to measures taken to protect a computer or computer Cybersecurity is a blanket term that refers to the protection of computer systems and networks from the theft.More broadly speaking, cybersecurity can also represent countermeasures against damage to hardware, software, or electronic data, as well as from the disruption or misdirection of the services they provide.It was not long ago that the term cybersecurity not exist as it was first used in 1989. In today’s vernacular cybersecurity, refers to measures taken to protect a computer or computer Read this Term standards. It also pointed to the potential use of highly capable AI-driven tools as a factor that could increase future risk pressure on financial systems.

Overall, the authorities said the findings point to a more systemic ICT risk environment across the financial sector, requiring stronger resilience, supervision, and coordination to prevent and respond to future disruptions.

Under DORA, ICT-related incidents are defined as unplanned events affecting the security of network and information systems and impacting availability, integrity, authenticity, or confidentiality of data or services. A major ICT-related incident is one with a high impact on critical or important functions of a financial entity.