The Digital Operational Resilience Act (DORA) is a significant regulation introduced by the European Union to enhance the digital operational resilience of financial institutions and their critical third-party ICT (Information and Communication Technology) service providers. Now in full force (as at 17th January 2025), DORA aims to ensure that the financial sector can effectively withstand, respond to, and recover from ICT-related disruptions, cyber threats, and operational risks.
What is DORA?
DORA is designed to address the increasing dependency of the financial sector on technology and the associated risks. It mandates financial entities to implement robust ICT risk management frameworks, conduct regular digital operational resilience testing, manage third-party risks, and ensure effective incident reporting and information sharing
The regulation applies to a wide range of financial entities, including banks, insurance companies, investment firms, and ICT third-party service providers.
Key Requirements of DORA
- ICT Risk Management: Financial entities must establish comprehensive ICT risk management frameworks to identify, assess, and mitigate risks related to their ICT systems.
- Incident Reporting: Organisations are required to report major ICT-related incidents to competent authorities promptly.
- Digital Operational Resilience Testing: Regular testing, including vulnerability assessments and threat-led penetration testing, is mandated to ensure systems can withstand and recover from disruptions.
- Third-Party Risk Management: Entities must manage risks associated with their ICT third-party service providers, ensuring these providers also comply with DORA requirements.
- Information Sharing: DORA encourages the sharing of threat intelligence and vulnerabilities within the financial sector to enhance collective resilience.
How Organisations Can Ensure DORA Compliance
- Implement a Robust ICT Risk Management Framework: Organisations should adopt a comprehensive ICT risk management framework that aligns with DORA’s stringent requirements. This includes conducting thorough risk assessments, establishing clear incident management protocols, and ensuring systems can withstand disruptions and recover swiftly.
- Streamline Incident Reporting: Develop and implement systems for monitoring, managing, logging, and reporting ICT incidents. Clear communication channels should be established for reporting to regulators, clients, and partners.
- Conduct Regular Resilience Testing: Regularly perform digital operational resilience testing, including vulnerability assessments and threat-led penetration testing, to ensure systems are resilient against potential threats.
- Manage Third-Party Risks: Establish a robust third-party risk management program to assess and monitor the compliance of ICT third-party service providers with DORA requirements.
- Foster a Culture of Cyber Resilience: Promote a culture of cyber resilience within the organisation by investing in cybersecurity training and awareness programs for employees.
- Leverage Data and Analytics: Utilize data and analytics to enhance decision-making processes related to ICT risk management and incident response.
- Commit to Continuous Improvement: Regularly review and update ICT risk management frameworks, incident response plans, and resilience testing protocols to ensure they remain effective and aligned with evolving threats and regulatory requirements.
The Role of Cyber Marketers in Maintaining DORA Compliance
Cyber marketers play a crucial role in maintaining DORA compliance by:
- Raising Awareness: Educating stakeholders about the importance of DORA compliance and the steps required to achieve it.
- Promoting Best Practices: Sharing best practices for ICT risk management, incident reporting, and resilience testing through various communication channels.
- Facilitating Information Sharing: Encouraging the exchange of threat intelligence and vulnerabilities within the financial sector to enhance collective resilience.
- Supporting Training Initiatives: Assisting in the development and promotion of cybersecurity training and awareness programs for employees.
By understanding and implementing the requirements of DORA, organisations and cyber marketers can ensure they are well-prepared to meet the challenges of the evolving cyber threat landscape and maintain the resilience of the financial sector.
