DORA-Art44-P1

Article
44 (1)
Pillar
Third-Party ICT Risk Management
Regulation Ref
Regulation (EU) 2022/2554, Article 44(1)
Last Reviewed
2026-01-15

Financial entities shall have in place exit strategies for ICT services provided by ICT third-party service providers, taking into account risks that may emerge at the level of the ICT third-party service provider, in particular a possible failure, a deterioration of the quality of the ICT services provided, any business disruption due to inappropriate or failed provision of ICT services or any material risk arising in relation to the appropriate and continuous deployment of the respective ICT service.

Evidence Profiles

ICT Provider Exit Strategy Documentation PARTIAL

Document defining exit strategies for ICT third-party service providers, including transition plans, data migration procedures, alternative provider arrangements, and timeline estimates as required by DORA Article 44.

Formats
DOCX
Evidence Class
exit-strategy-documentation
Availability
PARTIAL
Update Frequency
annual
Typical Author
Vendor Management Officer
Approval Chain
Vendor Management Officer → CIO → CRO

Content Sections

Expected Fields

Common Quality Issues

View Example

Generated example artifact using the default institution profile (COMMON availability, synthetic data only).

PLAIN_TEXT — Inline Preview
ICT PROVIDER EXIT STRATEGY
Meridian Cloud Services GmbH — Core Banking Infrastructure Hosting
Nordvik Bank AG
Strategy Reference: EXIT-PRV001-2025-001
Version 1.2 | Created: 15 March 2024 | Last Updated: 20 January 2025
Strategy Owner: Vendor Management Officer
Classification: Confidential

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EXIT STRATEGY OVERVIEW

This document defines the exit strategy for the Bank's contractual arrangement
with Meridian Cloud Services GmbH ("Meridian") for core banking infrastructure
hosting services, as required by DORA Article 44. The strategy addresses planned
and unplanned exit scenarios, transition procedures, data migration, and
alternative provider arrangements.

  Provider:               Meridian Cloud Services GmbH
  Service:                Core banking infrastructure hosting (IaaS)
  Contract Reference:     CTR-PRV001-2021-003
  Contract End Date:      28 February 2026
  Criticality:            Critical
  Annual Contract Value:  EUR 2,450,000
  Transition Assistance:  12 months (per MSA Clause 15.3)

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TRIGGER EVENTS

The following events would trigger activation of this exit strategy:

  Planned Exit Triggers:
    — Contract expiry without renewal (28 February 2026)
    — Strategic decision to change hosting provider (e.g., cloud migration)
    — Merger or acquisition requiring infrastructure consolidation

  Unplanned Exit Triggers:
    — Material breach of contract by Meridian (MSA Clause 15.2)
    — Meridian insolvency or financial distress
    — Regulatory direction to terminate the arrangement (FINMA, ECB)
    — Chronic underperformance (availability below 99.9% for 3 consecutive months)
    — Security breach at Meridian affecting Bank data confidentiality or integrity
    — Meridian acquisition by entity creating unacceptable concentration risk
    — Loss of critical certifications (ISO 27001, PCI-DSS)

  Escalation for Unplanned Triggers:
    — CIO and CRO notified immediately
    — Board Risk Committee notified within 24 hours
    — FINMA notified if trigger relates to critical function disruption
    — Exit strategy activation decision within 5 business days

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TRANSITION PLAN

Phase 1: Preparation (Months 1-3)

  Activities:
    — Activate transition governance (Transition Steering Committee)
    — Finalise alternative provider selection (see Alternative Provider section)
    — Negotiate and execute contract with alternative provider
    — Establish project team (Bank: 8 FTE; Provider: 4 FTE estimated)
    — Conduct detailed technical assessment of target environment
    — Develop detailed migration plan with workload prioritisation

  Deliverables:
    — Signed contract with alternative provider
    — Detailed migration plan with timeline and resource allocation
    — Risk assessment for transition period
    — Communication plan for internal stakeholders and regulators

Phase 2: Environment Setup (Months 3-6)

  Activities:
    — Provision target environment at alternative provider
    — Configure network connectivity (VPN, dedicated links)
    — Establish database replication to target environment
    — Deploy application infrastructure (Temenos T24, middleware)
    — Configure monitoring and alerting
    — Implement security controls and access management

  Deliverables:
    — Target environment operational and security-hardened
    — Database replication active and validated
    — Application stack deployed and configured
    — Security assessment of target environment completed

Phase 3: Migration and Testing (Months 6-12)

  Activities:
    — Migrate non-production environments first (dev, UAT)
    — Conduct functional testing in target environment
    — Conduct performance testing and capacity validation
    — Migrate pre-production environment
    — Conduct user acceptance testing
    — Conduct parallel-run period (minimum 3 months)
    — Validate disaster recovery capability at new provider

  Deliverables:
    — All non-production environments migrated and validated
    — Performance benchmarks met or exceeded
    — UAT sign-off from business stakeholders
    — DR capability validated at new provider

Phase 4: Cutover (Months 12-15)

  Activities:
    — Final data synchronisation and cutover
    — DNS and routing changes
    — Production validation and smoke testing
    — Hypercare period (4 weeks with enhanced monitoring)
    — Decommission Meridian environment
    — Data return and destruction verification

  Deliverables:
    — Production environment operational at new provider
    — Hypercare period completed without critical issues
    — Meridian data return confirmed (within 30 days per MSA)
    — Meridian data destruction certified (within 60 days per MSA)

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DATA MIGRATION PROCEDURES

  Data Category           Volume (est.)    Migration Method
  ─────────────────────────────────────────────────────────────────────────────
  Oracle Database          4.2 TB          Oracle Data Pump export/import with
                                           continuous replication during
                                           parallel-run period
  Application Config       12 GB           Ansible playbook export and
                                           re-deployment
  File Storage             850 GB          Rsync with integrity verification
  Backup History           18 TB           Not migrated — fresh baseline at
                                           new provider
  Log Archives             2.1 TB          Exported to Bank's long-term
                                           storage (regulatory retention)
  Encryption Keys          N/A             Re-generated at new provider;
                                           data re-encrypted during migration

  Data Integrity Verification:
    — Checksums computed before and after migration for all data categories
    — Row-count and hash verification for database tables
    — Application-level validation tests post-migration
    — Independent verification by Internal Audit

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ALTERNATIVE PROVIDER ARRANGEMENTS

Pre-qualified alternative providers (from Substitutability Analysis SA-2025-001):

  Provider                        Readiness    Notes
  ─────────────────────────────────────────────────────────────────────────────
  AWS Financial Services           High        Temenos offers AWS-native
  (eu-central-1)                               deployment. Proof-of-concept
                                               completed Q4 2024.
  Swisscom Enterprise Cloud        Medium      Swiss-domiciled. Capacity
                                               validation required.
  T-Systems Sovereign Cloud        Medium      German sovereign cloud.
                                               Limited Temenos experience.

Preferred alternative: AWS Financial Services (eu-central-1), based on:
  — Temenos T24 cloud-native deployment available
  — Proof-of-concept successfully completed in Q4 2024
  — Financial-grade compliance certifications (ISO 27001, SOC 2, C5, PCI-DSS)
  — Geographic diversification (Frankfurt primary, Dublin secondary)

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TIMELINE AND MILESTONES

  Milestone                              Target (from trigger)
  ─────────────────────────────────────────────────────────────────────────────
  Exit strategy activation decision      Week 1
  Transition Steering Committee formed   Week 2
  Alternative provider contract signed   Month 3
  Target environment provisioned         Month 6
  Non-production migration complete      Month 8
  Parallel-run period begins             Month 9
  Production cutover                     Month 12-15
  Hypercare complete                     Month 13-16
  Meridian decommissioning complete      Month 15-18

  Total estimated transition duration:   15-18 months

  For unplanned exit (emergency):
    — Interim service continuity via Meridian transition assistance (12 months)
    — Accelerated timeline targeting 12-month cutover
    — Acceptance of higher risk during compressed transition

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RESOURCE REQUIREMENTS

  Resource                          Estimated Cost
  ─────────────────────────────────────────────────────────────────────────────
  Alternative provider setup         EUR 800,000
  Migration tooling and licensing    EUR 200,000
  Internal project team (8 FTE)      EUR 1,200,000
  External migration consultants     EUR 600,000
  Parallel-run costs (dual hosting)  EUR 400,000
  Testing and validation             EUR 150,000
  Contingency (15%)                  EUR 500,000
  ─────────────────────────────────────────────────────────────────────────────
  Total estimated transition cost:   EUR 3,850,000

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RISK ASSESSMENT

  Risk                              Likelihood   Impact     Mitigation
  ─────────────────────────────────────────────────────────────────────────────
  Extended migration timeline        Medium       High       Parallel-run period
                                                             provides buffer
  Data loss during migration         Low          Critical   Checksums and
                                                             continuous replication
  Performance degradation at         Medium       High       Extensive performance
  new provider                                               testing before cutover
  Service disruption during          Low          Critical   Cutover during
  cutover                                                    maintenance window
  Meridian non-cooperation           Low          High       Contractual transition
  during transition                                          assistance obligation

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Strategy Owner: Vendor Management Officer
Reviewed by: CIO, CRO
Approved by: Board Risk Committee
Date: 20 January 2025

Expected Structured Facts

Example structured facts that Detrixa would extract from this evidence (synthetic data, deterministic seed).

exit_strategy_status — fs-exit-strategy-status
{
  "factId": "e0f1a2b3-c4d5-6789-efab-901234567890",
  "evidenceId": "d9e0f1a2-b3c4-5678-9012-345678abcdef",
  "evidenceClassId": "exit-strategy-documentation",
  "factType": "exit_strategy_status",
  "data": {
    "provider_id": "PRV-001",
    "strategy_date": "2025-01-20",
    "has_exit_strategy": true,
    "has_transition_plan": true,
    "has_data_migration_plan": true,
    "alternative_provider_identified": true,
    "transition_timeline_months": 18,
    "data_migration_tested": false,
    "estimated_transition_cost_eur": 3850000
  },
  "provenance": "deterministic",
  "extractorVersion": "dora-test-generator/0.1.0",
  "extractedAt": "2025-01-21T14:00:00Z",
  "supersededBy": null
}

Fact Schemas

exit_strategy_status

Schema ID
fs-exit-strategy-status
Control
DORA-Art44-P1

Valid Ranges

strategy_date
within last 18 months
transition_timeline_months
realistic based on service complexity

Related Schemas

JSON Schema

{
  "properties": {
    "alternative_provider_identified": {
      "type": "boolean"
    },
    "data_migration_tested": {
      "type": "boolean"
    },
    "estimated_transition_cost_eur": {
      "minimum": 0,
      "type": "number"
    },
    "has_data_migration_plan": {
      "type": "boolean"
    },
    "has_exit_strategy": {
      "type": "boolean"
    },
    "has_transition_plan": {
      "type": "boolean"
    },
    "provider_id": {
      "minLength": 1,
      "type": "string"
    },
    "strategy_date": {
      "format": "date",
      "type": "string"
    },
    "transition_timeline_months": {
      "minimum": 0,
      "type": "integer"
    }
  },
  "required": [
    "provider_id",
    "strategy_date",
    "has_exit_strategy",
    "has_transition_plan",
    "has_data_migration_plan"
  ],
  "type": "object"
}