The Digital Operational Resilience Act (DORA) is set to reshape the EU financial services landscape, introducing comprehensive security requirements to bolster the sector’s cyber resilience.
Are you ready for DORA?
Effective from 17 January 2025, DORA’s sweeping regulations will impact not only EU-based financial entities but also any global firms conducting business with them.
As financial organisations increasingly rely on third-party technology providers, the risk of disruptions from cyber incidents or outages grows.
These disruptions can cascade, threatening the stability of the EU’s financial ecosystem and undermining customer and business confidence.
DORA aims to mitigate these risks by ensuring financial firms and their partners remain operational, even during significant disruptions.
By mandating robust resilience measures, the regulation seeks to create a more secure and stable financial sector, safeguarding the broader EU economy from digital threats.
Key Requirements of DORA
DORA introduces over 500 requirements, many of which align with long-established cybersecurity practices recommended by frameworks like NIST and CIS.
These include:
- IT Asset Management: Firms must develop detailed policies for managing IT assets, documenting critical information such as asset functions and business impact. This foundational element ensures vulnerabilities are addressed and security resources are efficiently allocated.
- Encryption Protocols and Access Control: Organisations must implement strong encryption standards and rigorous access controls to protect sensitive data.
- Vulnerability and Patch Management: Firms must proactively address vulnerabilities and maintain up-to-date security patches to reduce exploitation risks.
In addition, DORA imposes strict standards for managing ICT third-party risks. Financial entities must conduct thorough due diligence on suppliers, assess operational risks and ensure third-party providers adhere to robust cybersecurity practices.
Challenges and Opportunities
While DORA’s scope is extensive, its implementation will be a significant undertaking for many organisations, particularly in navigating complex supply chains and meeting stringent requirements.
However, the regulation also presents an opportunity for Chief Information Security Officers (CISOs) to advocate for necessary investments in cybersecurity and operational resilience.
DORA establishes a baseline for security across the EU financial sector, ensuring even reluctant firms meet minimum standards.
By acting now, organisations can not only achieve compliance but also strengthen their defences against evolving cyber threats.
The Path Forward
DORA’s impact will extend beyond regulatory compliance, serving as a catalyst for improved security practices and greater resilience.
As the EU financial sector prepares for this transformative regulation, firms that proactively adopt its standards will not only reduce risks but also gain a competitive edge in an increasingly interconnected and digital world.
DORA represents a critical step toward a safer, more resilient financial future – one where robust cybersecurity is the foundation of operational success.
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