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Showing posts with label DORA. Show all posts

Data Portability and Sovereign Clouds: Building Resilience in a Globalized Landscape

 

The emergence of sovereign clouds has become increasingly inevitable as organizations face mounting regulatory demands and geopolitical pressures that influence where their data must be stored. Localized cloud environments are gaining importance, ensuring that enterprises keep sensitive information within specific jurisdictions to comply with legal frameworks and reduce risks. However, the success of sovereign clouds hinges on data portability, the ability to transfer information smoothly across systems and locations, which is essential for compliance and long-term resilience.  

Many businesses cannot afford to wait for regulators to impose requirements; they need to proactively adapt. Yet, the reality is that migrating data across hybrid environments remains complex. Beyond shifting primary data, organizations must also secure related datasets such as backups and information used in AI-driven applications. While some companies focus on safeguarding large language model training datasets, others are turning to methods like retrieval-augmented generation (RAG) or AI agents, which allow them to leverage proprietary data intelligence without creating models from scratch. 

Regardless of the approach, data sovereignty is crucial, but the foundation must always be strong data resilience. Global regulators are shaping the way enterprises view data. The European Union, for example, has taken a strict stance through the General Data Protection Regulation (GDPR), which enforces data sovereignty by applying the laws of the country where data is stored or processed. Additional frameworks such as NIS2 and DORA further emphasize the importance of risk management and oversight, particularly when third-party providers handle sensitive information.

Governments and enterprises alike are concerned about data moving across borders, which has made sovereign cloud adoption a priority for safeguarding critical assets. Some governments are going a step further by reducing reliance on foreign-owned data center infrastructure and reinvesting in domestic cloud capabilities. This shift ensures that highly sensitive data remains protected under national laws. Still, sovereignty alone is not a complete solution. 

Even if organizations can specify where their data is stored, there is no absolute guarantee of permanence, and related datasets like backups or AI training files must be carefully considered. Data portability becomes essential to maintaining sovereignty while avoiding operational bottlenecks. Hybrid cloud adoption offers flexibility, but it also introduces complexity. Larger enterprises may need multiple sovereign clouds across regions, each governed by unique data protection regulations. 

While this improves resilience, it also raises the risk of data fragmentation. To succeed, organizations must embed data portability within their strategies, ensuring seamless transfer across platforms and providers. Without this, the move toward sovereign or hybrid clouds could stall. SaaS and DRaaS providers can support the process, but businesses cannot entirely outsource responsibility. Active planning, oversight, and resilience-building measures such as compliance audits and multi-supplier strategies are essential. 

By clearly mapping where data resides and how it flows, organizations can strengthen sovereignty while enabling agility. As data globalization accelerates, sovereignty and portability are becoming inseparable priorities. Enterprises that proactively address these challenges will be better positioned to adapt to future regulations while maintaining flexibility, security, and long-term operational strength in an increasingly uncertain global landscape.

Here's Why Businesses are Not Ready for DORA Compliance

 

The tension is palpable in the impending Digital Operational Resilience Act (DORA). An important new chapter in cybersecurity is being ushered in by this EU legislation. It will require financial institutions and specific third-party ICT vendors to have robust safety measures. 

The three main objectives of DORA are to strengthen the resilience of critical IT infrastructure, combat the scale and speed of cyberattacks, and provide a cohesive regulatory framework. ICT risk management, incident reporting, digital operational resilience testing, third-party risk management, and information and intelligence sharing are the five main pillars of DORA that will influence how financial services organisations handle ICT and cyber risks. Financial institutions and third-party vendors who operate in the European Union will be required to comply.

However, many organisations—as well as their security teams—will have difficulties in preparing and adhering to regulations. A penalty of up to 10 million euros, or 5% of annual turnover, will be imposed for noncompliance with these regulations. It is imperative that businesses take action today, whether it is by hiring security professionals to detect, monitor, and address risks; testing incident response strategies to satisfy reporting requirements; or obtaining insight into the ecosystems of their third and fourth parties. 

DORA is a cross-functional strategy involving collaboration from more than simply IT, even if it won't completely take effect until January 17, 2025. The CISO's teams—legal, compliance, risk management, and others—must work together to achieve their objective. Fast and effective DORA compliance is ensured by this partnership. Organisations need to get ready for the DORA journey over the course of the next 16 months. Existing procedures and policies need to be improved. And that objective is very clear: to increase cyber resilience and streamline cybersecurity. The following actions would be advantageous for security practitioners to take in light of this. 

Steps to take 

As part of their overall risk management strategy, organisations must establish and implement a comprehensive ICT risk management framework. Having a platform in place to assist with the development, implementation, and monitoring of this framework will meet regulatory requirements, whereas cybersecurity ratings will give a quantifiable, data-driven assessment of your organisation's cybersecurity posture. 

DORA requires financial institutions to timely report ICT-related issues to authorities. The number of users affected, the amount of data lost, the geographical distribution, the economic impact, and other factors should be disclosed. This plan should also include a clear description of how personnel will respond in the event of a cyberattack, as well as how operations would be restored in the event of a breach. 

Continuous monitoring of your cybersecurity posture will keep your organisation informed of any dangers, allowing it to resolve any concerns that occur as soon as possible. This includes regularly monitoring and reviewing your third-party vendors' security posture to discover any changes or vulnerabilities that may affect your organisation's overall risk profile.

DORA will require that third-party risk be managed as an integral component of total ICT risk in order to ensure that providers will support your company in the case of a cybersecurity incident and comply with stricter security standards. As a result, organisations must periodically review and manage these partnerships in order to gain rapid visibility and keep an eye on red flags and essential supply chain providers.