Strengthening cyber resilience: How ESCROWSURE supports compliance with Joint Standard 2 of 2024

The financial sector must fortify its cyber security frameworks. (Image: Supplied)

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In an era of escalating cyber threats, the South African financial sector is under mounting pressure to fortify its cyber security frameworks. The Joint Standard 2 of 2024 – Cybersecurity and Cyber Resilience Requirements mandates financial institutions to implement robust cyber resilience strategies that mitigate risks and ensure operational continuity​.

With digital infrastructures increasingly under attack, ESCROWSURE, which positions itself as South Africa’s leading software escrow provider, along with other cyber security and cyber resilience experts, is at the forefront of enabling financial institutions to meet and exceed the expectations outlined in this landmark regulation.

With effect from 1 June 2025, the Joint Standard 2 of 2024, issued by the Financial Sector Conduct Authority (FSCA) and the Prudential Authority (PA), highlights the need for financial institutions to establish comprehensive cyber security governance frameworks​.

Key requirements include:

• Governance and oversight of cyber security risks.
• Cyber hygiene practices to prevent security breaches.
• Continuous threat monitoring and risk management.
• Incident response and recovery mechanisms.
• Secure third-party technology risk management.

At its core, the regulation demands financial institutions identify, assess and mitigate cyber risks, particularly those stemming from third-party software dependencies – a growing concern as the sector relies on cloud-based platforms, fintech solutions and outsourced IT services.

A cyber security breach, vendor insolvency or software provider failure can cripple business operations, leading to severe financial and reputational damage. ESCROWSURE’s software escrow solutions are part of a raft of measures which address the cyber security risks highlighted in the Joint Standard, ensuring financial institutions can recover and maintain access to critical systems in the event of a disruption.

• Mitigating third-party risks

ESCROWSURE helps financial institutions comply with the Joint Standard’s focus on third-party risk management by ensuring that mission-critical software remains accessible, secure and verifiable even if the vendor fails.

• Ensuring business continuity

By securing the latest version of source code, technical documentation and encryption keys, ESCROWSURE guarantees that financial institutions can continue operations without disruption, regardless of cyber threats or vendor failures

• Regulatory compliance and audit readiness

Software escrow aligns with the Joint Standard’s IT governance principles, offering financial institutions a transparent, legally binding mechanism to secure their digital assets while demonstrating compliance to regulators

• Cyber incident response and securing data access

With verified software deposits and secure vaulting, ESCROWSURE ensures rapid software restoration during a cyber security breach, reducing downtime, financial losses and compliance penalties​.

The Joint Standard 2 of 2024 marks a critical shift in how South African financial institutions approach cyber risk, IT governance and business continuity. By integrating ESCROWSURE’s verified software escrow solutions, banks, insurers and investment firms can proactively secure their IT ecosystems and protect their customers from catastrophic service disruptions.

“Financial institutions cannot afford to be complacent in today’s volatile cyber landscape. Regulatory compliance is no longer just a ‘box-ticking’ exercise; it’s about operational survival. Software escrow is a powerful risk mitigation tool that ensures financial institutions maintain control over their mission-critical applications in the face of escalating cyber threats,” says Guy Krige, Executive Risk Consultant at ESCROWSURE.

With a legacy of safeguarding South Africa’s top financial institutions, ESCROWSURE remains the trusted partner for organisations committed to cyber resilience, compliance and business continuity. 

Cyber threats across South Africa and the broader African continent are on the rise, with cyber criminals exploiting vulnerabilities in ageing IT systems, weak supply chain security and organisations with large remote workforces.

For more information on how ESCROWSURE can help your institution comply with the Joint Standard 2 of 2024, visit: www.escrowsure.co.za.