The Act focusses on five key areas to improve operational resilience.
With mandatory compliance just round the corner, companies should be conducting Gap Analysis and developing their DORA security improvement plans before the January 2025 deadline.
Driving growth through compliance.
Understanding the impact of ICT disruptions relies on identifying Critical or Important Functions (CIFs) and mapping assets and dependencies to the CIFs). This should then be linked to a Business Impact Analysis based on severe business disruption scenarios.
Understanding the treats to the CIFs or their related assets and dependences is instrumental in developing a robust Risk Management process. Vulnerability Management and Penetration Testing are always the essential elements of any Risk Management process; however DORA has taken this further with the introduction of Threat Led Penetration testing as a mandatory requirement.
DORA further strengthen the requirement for Third-Party Risk Management, where the level of Supplier/Vendor assessment should be commensurate to the importance of the service offered, in relation to operational resilience.
Incident response planning, management and reporting must be documented and exercised for all Critical and Important Functions.
What is it?
Safeguarding Your Financial Operations
The Digital Operations Resilience Act (DORA) is an EU regulatory framework designed to enhance the operational resilience of organisations within the financial sector. It provides a comprehensive approach to addressing the security challenges and risks posed by evolving threat landscapes in the financial sector, aiming to ensure that financial organisations have implemented the necessary safeguards to mitigate and respond to operational disruptions.
DORA is aligned with the wider EU Network and Information Systems (NIS2) regulations and is leading the way in relation to digital operational resilience for financial entities. All financial firms operating in Europe are required to comply with the Act. There is a global regulatory push towards operational resilience, and other regulation such a s the Operational Resilience Act in the UK developed by the FCA, PRA and Bank of England, is expected to be aligned with DORA principles.
The Digital Operational Resilience Act requires firms to consider resilience across their business with accountability at Senior Management level.
DORA introduces greater powers on digital operational resilience to National and EU Financial Supervisors, wo are the regulatory authorities responsible for overseeing, regulating and ensuring the stability and integrity of the financial systems within their jurisdiction. Different countries and regions have their own financial supervisory bodies.
Financial Supervisors responsibilities include but not limited to:
- Ensuring financial entities have robust risk management process to identify, protect, detect respond and recover from ICT related incidents.
- Overseeing the implementation of regular testing and audits to assess the effectiveness of the digital resilience controls.
- Mandating the reporting of significant cyber incidents and ensuring effetive repsonse to the incidents.
- Supervising the relationship between financial entities and their critical third-party service providers to manage supply chain risks.