Cyber Resilience for Regulated Businesses: Why Compliance Alone Is Not Enough

For financial institutions, fintechs, and other regulated businesses, cybersecurity is no longer a technology side issue. It is a boardroom priority and a critical component of business resilience. In an era of AI-driven fraud, supply chain attacks, and rising regulatory scrutiny, compliance checklists offer limited protection. True cyber resilience demands a proactive, integrated approach that brings together governance, risk management, and security. This article explores why businesses must go beyond compliance and how they can strengthen their defences.

The Expanding Threat Landscape

The threat landscape facing regulated businesses is more complex than ever. According to IBM’s 2024 Cost of a Data Breach Report, the global average cost of a breach reached USD 4.45 million, with financial services among the hardest-hit sectors. Cybercriminals are leveraging AI to develop sophisticated phishing campaigns, bypass detection tools, and exploit human error.

Other growing vulnerabilities include:

• Supply chain attacks that target third-party providers with weaker security postures

• Insider threats driven by negligence or malicious intent

• Gaps in remote work infrastructure

• Increased reliance on cloud services without adequate risk controls

  
  

As Christine Lagarde, President of the European Central Bank, remarked, "Cyber risk is a clear and present danger to financial stability." The message is equally clear for firms operating in regulated markets across the GCC and beyond.

Cyber Risk Is Business Risk

A successful cyber attack can have immediate and lasting consequences. Beyond financial losses, the reputational damage of a breach can undermine client trust and investor confidence. For regulated businesses, the stakes are even higher as regulatory authorities worldwide are tightening their expectations around cyber resilience.

Recent examples illustrate the consequences:

• In 2023, the UK’s Financial Conduct Authority fined a wealth management firm over GBP 1.3 million for failing to manage cybersecurity risks, following a data breach impacting sensitive client information.

• The Dubai Financial Services Authority has increased inspections focusing on cyber risk management for firms operating in the DIFC.

• The Central Bank of the UAE has mandated minimum cybersecurity requirements for all licensed financial institutions.

  
  

Where Compliance Falls Short

Many organisations still approach cybersecurity as a compliance checklist. While regulatory frameworks are essential, ticking the boxes alone does not create meaningful protection.

Common weaknesses include:

• Outdated or incomplete cybersecurity policies

• Incident response plans that are untested or poorly communicated

• Siloed teams where IT, risk, and compliance functions fail to collaborate

• Inadequate monitoring and detection capabilities

• A lack of continuous assessment and improvement

  
  

As Jehanzeb Awan, the CEO of j. awan & partners, often states, "Cybersecurity is not a one-time exercise. It is an ongoing process that requires alignment between technology, people and governance."

Building True Cyber Resilience

Cyber resilience means preparing for, withstanding, and recovering from cyber threats while maintaining critical business operations. This requires an integrated approach that goes beyond minimum compliance.

Key elements include:

• Embedding cybersecurity into risk management and business continuity planning

• Clear ownership and accountability for cyber risks at leadership level

• Cross-functional collaboration between IT, risk, compliance, and legal teams

• Regular scenario testing and cyber incident simulations

• Ongoing training to build security awareness at all organisational levels

• Leveraging independent expertise to assess vulnerabilities and enhance controls

  
  

The Role of Expert Advisory Support

Many regulated businesses lack the in-house capacity to manage these challenges alone. Independent advisory support provides valuable perspective, practical solutions, and the ability to benchmark practices against industry standards.

At j. awan & partners, we help financial institutions, fintechs and corporates:

• Assess cyber risks within the context of regulatory obligations

• Strengthen governance frameworks and internal controls

• Align cyber resilience with operational risk management

• Prepare for regulatory inspections and demonstrate readiness

  
  

Protecting Business, Clients and Reputation

In today’s market, cybersecurity is not just about technology. It is a strategic enabler of operational resilience, client confidence, and regulatory compliance. By integrating cyber risk into governance and risk frameworks, businesses can build true resilience that protects their operations, reputation, and growth potential.

j. awan & partners works with regulated businesses across the GCC and global markets to develop cyber strategies that meet regulatory expectations and strengthen organisational resilience.

Ready to enhance your cyber resilience and regulatory readiness? Speak to our Cybersecurity and Risk Advisory team.