The Digital Operational Resilience Act (DORA), adopted by the EU in December 2022, is a pivotal regulation aimed at strengthening the digital resilience of financial institutions. With deadlines approaching, compliance is critical to ensure organizations can withstand, respond to, and recover from ICT disruptions and cyber threats.
DORA applies to banks, insurers, investment firms, and ICT service providers, focusing on:
- ICT Risk Management: Establishing frameworks to address risks.
- Incident Reporting: Implementing mechanisms for timely reporting.
- Resilience Testing: Regularly stress-testing systems.
- Third-Party Risk: Managing risks linked to service providers.
- Information Sharing: Promoting collective resilience.
DORA’s urgency is underscored by rising cyber threats, making it crucial for protecting consumers, enhancing trust, and mitigating financial risks. Like GDPR, DORA emphasizes accountability, broad applicability, and significant penalties for non-compliance. Companies familiar with GDPR’s framework may find a smoother transition to DORA.
By now, companies should have:
- Conducted gap analyses.
- Established ICT governance frameworks.
- Designed incident reporting mechanisms.
- Assessed third-party risks.
- Initiated operational resilience testing.
- Trained employees on resilience roles.
Though challenging, DORA compliance offers significant benefits, including improved cybersecurity, regulatory alignment, and cost savings. With deadlines imminent, financial institutions must act swiftly to conduct assessments, engage experts, and align with third-party providers.
DORA is more than regulation; it’s an opportunity to build a secure and reliable digital future.