"A fool with a tool is still a fool" captures the current AI hype, where many believe AI can solve all problems. Just like a person with a hammer sees every problem as a nail, some misuse AI inappropriately, leading to flawed systems that may provide inaccurate insights or perpetuate biases. This overreliance on AI can create a false sense of security, diminishing the role of human judgment and accountability. AI is often treated as infallible, overlooking its limitations, biases, and the need for critical thinking. To truly harness AI’s potential, it's crucial to understand its strengths and weaknesses, and apply it thoughtfully, not indiscriminately. This requires education, training, and a balanced approach that values human oversight alongside technological tools. AI's real power is in augmenting human capabilities, not replacing them. By recognizing AI as one tool among many, we can avoid the pitfalls of misuse and truly benefit from its potential.

The annual struggle of IT project planning in the banking sector highlights a fundamental challenge: the disconnect between ambition and reality. This ritual is flawed for several reasons. Firstly, it assumes that all IT projects are created equal. In reality, some projects yield significant benefits for the bank and its customers, while others may offer only marginal improvements or even prove detrimental. Secondly, it overlooks the crucial role of IT in driving innovation and competitive advantage. Banks that fail to invest strategically in IT risk falling behind their rivals, losing market share, and ultimately jeopardizing their long-term viability.

The key to overcoming this challenge lies in proper prioritization. This involves not just reducing the number of IT projects, but selecting the right ones. Desirable projects are those that create tangible and measurable benefits for the bank and its customers, such as faster payment processing, more reliable and accessible account services, or enhanced security features. By focusing on such projects, banks can ensure that their IT investments deliver maximum value and contribute to their overall strategic goals.

Moreover, proper prioritization requires a clear understanding of the bank's overall business objectives and the role of IT in achieving them. This means aligning IT projects with the bank's strategic priorities, ensuring that they support the bank's core business functions, and delivering a clear return on investment. It also involves involving key stakeholders in the prioritization process, including business leaders, IT experts, and customer representatives, to ensure that all perspectives are considered and that the chosen projects have broad support.

The accelerating pace of digital transformation in the financial sector has fundamentally altered the landscape of risks faced by banks. Operational disruptions caused by cyberattacks, technology failures, or third-party dependencies have the potential to trigger systemic crises across the interconnected financial system. In response to these evolving threats, the European Union's Digital Operational Resilience Act (DORA) represents a watershed moment, establishing a harmonized framework to enhance the sector's ability to withstand and recover from digital disruptions. For supervisory board members of banks, DORA signifies a call to action, demanding a renewed focus on digital operational resilience and a comprehensive oversight approach.

DORA goes beyond existing cybersecurity regulations by mandating in-depth ICT (Information and Communication Technology) risk management across the entire financial ecosystem. Supervisory boards hold the primary responsibility for ensuring their institutions are adequately prepared for the challenges posed by DORA. This entails a profound understanding of the regulation's core principles, a strategic recalibration of risk management approaches, and a commitment to fostering a culture of resilience across all organizational levels.

Effective ICT incident management is another cornerstone of DORA compliance. Supervisory boards must play a crucial role in defining incident reporting thresholds, escalation procedures, and communication protocols with both internal and external stakeholders. DORA emphasizes the need for swift and decisive action in the face of disruptions, as well as thorough analysis of root causes to prevent future recurrences. Board oversight in this area helps drive continuous improvement in the institution's ability to manage operational crises.

The implementation of DORA goes beyond technical compliance; it necessitates a culture where digital operational resilience is a top priority. Supervisory boards are best positioned to lead this cultural transformation. Through communication, incentives, and accountability mechanisms, board members can promote resilience-focused behavior across the organization. This translates into investing in robust technologies, proactively identifying and mitigating risks, and emphasizing the importance of effective incident reporting and response.