PODCAST | The cost of IT noncompliance, a discussion

New IT governance laws set to come into force later in 2024 are the focus in this edition of the Business Day Spotlight. 

Our host Mudiwa Gavaza is joined by Guy Krige, executive risk consultant at Escrowsure.

SA’s financial services companies, including insurers, have until November 15 to comply with the requirements of SA’s new joint standard for IT governance and risk management, issued by the Financial Sector Conduct Authority (FSCA) and the Prudential Authority. This latest amendment to the Financial Sector Regulation Act of 2017 aims to update the minimum requirements for IT governance and risk management that financial institutions must meet.

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Krige explains reasons for the change in legislation and what it will take for companies in the sector to comply. The standard puts the onus on the governing bodies of financial institutions to ensure compliance.

“Typically, South Africa follows the lead of developed nations when it comes to regulations. What is notable is that this regulation includes mitigating the business continuity risks associated with dependence on third-party software vendors who can fail to deliver on the agreed services, suddenly go out of business or get bought out by your competition,” he says.

Escrowsure specialises in software escrow services. Such companies act as a neutral third-party custodian for the source code and critical materials of a software application. This is essentially a risk management tool used to protect businesses that rely on software from vendors.

Topics of discussion include: outlining new IT laws that will soon affect SA’s financial services industry; the mechanics of software escrow services; challenges in becoming compliant; and possible impact on procurement practices. 

Business Day Spotlight is a MultimediaLIVE Production.