DORA Compliance Best Practices
Video
The The EU’s Digital Operational Resilience Act (DORA) is a comprehensive regulatory framework aimed at strengthening the cybersecurity and operational resilience of the financial sector in the European Union. It applies to financial entities like banks, insurance companies, investment firms, and third-party service providers that support the financial sector.
DORA aims to ensure that financial entities can withstand, respond to, and recover from all types of Information and Communications Technology (ICT) related disruptions and threats. It establishes a uniform set of rules across the EU, addressing the increasing reliance on digital technologies in finance and the associated risks.
Compliance with DORA helps mitigate operational risks related to ICT systems, cyber threats and attacks, system failures and outages, third-party and supply chain risks, and reputational damage from ICT-related incidents.
Follow the best practices in this video to not only demonstrate DORA compliance, but also enhance trust with customers and partners, improve operational resilience and business continuity, mitigate the risk of cyber threats, avoid regulatory penalties and risk of financial losses due to ICT incidents, and improve your overall risk management and governance.
Frequently Asked Questions
The Digital Operational Resilience Act (DORA) is a regulation requiring financial entities within the EU to enhance their cybersecurity and operational resilience. DORA compliance mandates robust risk management, regular testing and monitoring of systems, and immediate incident reporting to authorities to ensure these organizations can handle and recover from disruptions like cyberattacks and natural disasters.
DORA will be enforceable starting January 17, 2025. Financial entities will be required to implement comprehensive ICT risk management frameworks, reassess governance structures, and manage third-party risks. These efforts will require significant resource investment, careful planning, and continuous monitoring to ensure DORA compliance.
DORA compliance extends to third-party service providers and critical information providers in the financial sector. Financial services organizations must ensure that their third party partners adhere to stringent security and resilience standards, which involves assessing their security practices, establishing clear contractual agreements, and regularly monitoring their performance.
Under DORA, financial entities are required to promptly report significant ICT-related incidents to relevant authorities. They must establish efficient incident response mechanisms, conduct security awareness trainings on identifying and reporting incidents, and ensure timely communication with stakeholders. Failure to comply can lead to costly penalties.
DORA mandates continuous testing and monitoring to ensure the resilience and security of ICT systems. Financial entities must conduct rigorous assessments, including vulnerability and penetration testing, and resilience testing based on various scenarios. The evolving nature of cyber threats also requires these entities to continually update their security measures to mitigate risks effectively.