This guide offers an in-depth look at how your financial institution can successfully navigate and comply with DORA’s regulations by the 2025 deadline. Our main goal is to help ensure that your operations are robustly fortified against the evolving landscape of digital threats.
So without further ado, let’s dive in:
What is DORA?
DORA, the Digital Operational Resilience Act, applies to all financial institutions within the EU, including traditional entities like banks and investment firms, as well as newer market participants such as crypto-asset service providers and crowdfunding platforms.
It is a comprehensive regulation from the European Union that mandates implementation in your ICT systems by January 17, 2025. It aims to strengthen the sector’s resilience against cyberattacks and disruptions.
Defining Digital Operational Resilience
According to the text of DORA itself, digital operational resilience is:
“the ability of a financial entity to build, assure, and review its operational integrity and reliability by ensuring, either directly or indirectly through the use of services provided by ICT third-party service providers, the full range of ICT-related capabilities needed to address the security of the network and information systems which a financial entity uses, and which support the continued provision of financial services and their quality, including throughout disruptions”
DORA, Article 3(1).
What Does DORA Cover?
DORA outlines several key areas crucial for maintaining operational resilience:
- 1. ICT Risk Management: Establishes a framework for identifying, responding to, and managing ICT risks, including setting clear principles and requirements.
- 2. ICT Third-Party Risk Management: Requires continuous monitoring of third-party service providers, including key contractual provisions to ensure service quality, security, and compliance.
- 3. Digital Operational Resilience Testing: Mandates regular testing (both basic and advanced) to identify vulnerabilities in ICT systems.
- 4. ICT-Related Incidents: Outlines general requirements and reporting procedures for major ICT-related incidents to ensure rapid response and mitigation.
- 5. Information Sharing: Promotes the exchange of information and intelligence on cyber threats to enhance collective response capabilities.
- 6. Oversight of Critical Third-Party Providers: Establishes a framework for overseeing critical ICT third-party providers to ensure they meet stringent security and operational standards.
Why is DORA Important?
Financial institutions are prime targets for cybercriminals, and the Digital Operational Resilience Act addresses these vulnerabilities by:
- – Requiring Regular Risk Assessments: To pinpoint potential system weaknesses.
- – Mandating Incident Reporting: Ensuring quick action to minimize the impact of disruptions.
- – Setting Clear Standards: Outlining the necessary steps for improving defenses.
How Does DORA Benefit Your Business?
By adhering to DORA, your institution will:
- Protect Customers: Enhancing cybersecurity fosters trust and safeguards customer data.
- Gain a Competitive Edge: Demonstrating robust digital defenses can distinguish you from competitors.
- Strengthen the Financial System: Compliance contributes to the overall resilience of the financial sector.
Getting Started with DORA
Compliance may seem daunting, but by breaking it down, you can streamline the process:
- Assemble Your A-Team: Include representatives from IT, Security, Compliance, and Management.
- Map Your Fortress: Identify critical operations and the IT systems that support them.
- Hunt for Weaknesses: Conduct a cyber risk assessment.
- Craft Your Plan: Develop a comprehensive DORA compliance strategy.
- Get Help & Stay Informed: Seek expert advice and keep abreast of updates from the ESAs (European Supervisory Authorities).
Integrating Technology Solutions
Cloud services and management tools provide scalable and flexible solutions for data storage and security, which are crucial for ensuring compliance with DORA regulations.
GAT Labs: Your Partner in DORA Compliance
GAT Labs offers a suite of tools that can significantly aid in your journey toward DORA compliance, particularly in the realms of risk assessment and third-party risk management:
- – GAT+: Utilize our advanced analytics to monitor and manage IT security risks comprehensively.
- – GAT Unlock: In scenarios where immediate access to documents is necessary during incident response, GAT Unlock allows for secure access and document ownership changes.
- – GAT Flow: Automate user management workflows to ensure that only authorized personnel have access to sensitive ICT systems.
- – GAT Shield: Enhance your digital operational resilience with our continuous, live, in-browser authentication solutions tailored for Chrome users.
Final Thoughts
By understanding DORA, integrating the right technologies, and leveraging strategic insights, your financial institution can not only comply with upcoming regulations but also enhance its overall operational resilience.
Stay proactive and informed, and consider partnering with experts like GAT Labs to navigate this complex landscape successfully.
Stay in the loop
Sign up to our newsletter to get notified whenever a freshly baked blog post is out of our content oven.
