Digital Operational Resilience Act (DORA)
DORA ensures EU financial entities’ resilience by managing ICT risks, enabling them to withstand, respond to, and recover from disruptions.
Why is DORA needed?
DORA
The Digital Operational Resilience Act (DORA) is an EU regulation designed to enhance the digital resilience of financial entities. Effective from January 17, 2025, it ensures banks, insurers, investment firms, and others can withstand, respond to, and recover from ICT disruptions like cyberattacks or system failures.
DORA establishes consistent rules for operational resilience across the financial sector, applying to 20 different types of financial entities as well as ICT third-party service providers.The financial sector is becoming more reliant on technology and tech companies to provide financial services, increasing its vulnerability to cyber-attacks and incidents.
If ICT risks are not properly managed, they can disrupt financial services across borders, affecting other companies, sectors, and the broader economy.This highlights the critical need for digital operational resilience in the financial sector.
The Digital Operational Resilience Act (DORA) addresses this need.
What doesDORA cover?
DORA covers digital operational resilience requirements for financial entities and ICT third-party service providers.
Management of ICT Risks
DORA sets out principles and detailed requirements for establishing, implementing, and maintaining a comprehensive ICT risk management framework to ensure digital operational resilience across financial entities and their service providers.
Management of ICT Third-Party Risks
Monitoring risks from third-party providers involves ongoing assessment of their performance, security, and compliance, while key contractual provisions ensure clear responsibilities, risk management expectations.
Testing for Digital Operational Resilience
Digital operational resilience testing includes basic tests like vulnerability scanning and disaster recovery drills, and advanced tests like red teaming and scenario simulations, ensuring organisations withstand and recover from cyber disruptions.
Management of ICT-Related Incidents
ICT-Related Incidents – General Requirements:
Organisations must detect, manage, and document ICT-related incidents. Major incidents must be reported promptly to competent authorities, including impact details, mitigation steps, and recovery status.
Cyber Threat Information Sharing
Organisations should actively share and receive cyber threat intelligence with trusted entities to enhance awareness, detect threats early, and strengthen collective defense against evolving cyber risks.
Oversight of Critical ICT Third-Party Providers
Oversight of Critical Third-Party Providers:
Organisations must establish a robust oversight framework for critical ICT third-party providers, ensuring risk management, performance monitoring, contractual safeguards, and compliance with operational resilience.
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