A close look at The Digital Operational Resilience Act (DORA)

A close look at The Digital Operational Resilience Act (DORA) - Cybergate your cyber security partner

A close look at The Digital Operational Resilience Act (DORA)


A close look at The Digital Operational Resilience Act (DORA)

DORA is a EU regulation that entered into force on 16 January 2023 and will apply as of 17 January 2025.

The Digital Operational Resilience Act, or as commonly referred to as DORA, is a significant European Union regulation that aims to enhance the ICT security of financial entities within the EU financial sector.

The focus of DORA is to ensure that financial institutions can effectively manage operational digital disruptions and maintain resilience in the face of severe ICT-related incidents. It introduces a comprehensive framework for digital operational resilience, covering aspects such as:

  • ICT risk management,
  • incident reporting,
  • operational resilience testing, and
  • ICT third-party risk monitoring.

Financial entities are now required to follow rules for protection, detection, containment, recovery, and repair capabilities against ICT-related incidents, acknowledging the critical role of operational resilience in safeguarding financial systems.

The regulation mandates uniform requirements concerning the security of network and information systems supporting financial entities, including reporting of major ICT-related incidents, digital operational resilience testing, information sharing on cyber threats, and measures for managing ICT third-party risk. DORA also establishes an oversight framework for critical ICT third-party service providers, ensuring a high common level of digital operational resilience across the financial sector. DORA represents a crucial step towards harmonising digital resilience standards in the EU financial services sector.

Financial institutions need to prepare for the implementation of DORA to ensure compliance with the regulation and enhance their digital operational resilience capabilities.

Fire Questions

  • What does DORA stand for? The Digital Operational Resilience Act

 

  • What is The Digital Operational Resilience Act (DORA)? It is a regulation aimed at enhancing the resilience of the digital operational environment within the European Union. DORA seeks to establish a comprehensive framework to address operational risks and threats in the digital sector, including cybersecurity incidents, disruptions, and failures.

 

  • What are the key objectives of DORA? The key objectives are:
    • Strengthening Cybersecurity: DORA aims to bolster cybersecurity measures across the EU by establishing minimum requirements for digital service providers and financial entities.
    • Ensuring Continuity of Services: The act seeks to ensure the continuous provision of essential digital services, minimising disruptions that could impact businesses and consumers.
    • Enhancing Supervision and Cooperation: DORA proposes the establishment of a coordinated approach to supervision and cooperation among relevant authorities, including national competent authorities and the European Supervisory Authorities (ESAs).
    • Improving Risk Management: The act encourages digital service providers and financial entities to implement robust risk management practices to identify, assess, and mitigate operational risks effectively

 

  • What are the main implications for Businesses?
    • Compliance Requirements: Businesses operating in the digital sector, including digital service providers and financial entities, will need to comply with the requirements outlined in DORA. This may involve implementing additional cybersecurity measures, conducting regular risk assessments, and enhancing operational resilience capabilities.
    • Increased Accountability: DORA introduces obligations for businesses to report significant incidents and disruptions to competent authorities promptly. This will require organisations to maintain comprehensive incident response plans and communication strategies to address potential crises effectively.
    • Potential Costs: Compliance with DORA may entail additional costs for businesses, including investments in cybersecurity technologies, staff training, and regulatory compliance activities. However, the long-term benefits of enhanced operational resilience and reduced cyber risks outweigh the initial expenditures.
    • Competitive Advantage: Companies that proactively embrace the principles of DORA and demonstrate robust operational resilience capabilities may gain a competitive edge in the market. Stakeholders, including customers, partners, and investors, are likely to favour organisations that prioritise cybersecurity and operational stability.

 

  • Which are the steps to take to implement DORA? The main proactive measures and steps include conducting risk assessments, investing in cybersecurity infrastructure, and fostering a culture of resilience will be critical to navigating the regulatory landscape effectively. By embracing the principles of DORA and prioritising operational resilience, businesses can position themselves for success in an increasingly digital and interconnected world.

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    francesco mifsud cybergate your cyber security partner
    Francesco Mifsud
    [email protected]

    I live and breathe cyber security and everything else in the discipline. With around a decade of experience in the industry I have had the opportunity to develop skills in penetration testing, cloud security, reverse engineering & exploit development, application security engineering, management and organisation-wide cyber security strategy. I hold a well-rounded set of security certifications such as OSCP, eWPTX and CISSP and have delivered training & workshops at some of the most prestigious hacking conferences such as DEF CON, BRU CON, BSides London and BSides Manchester.