Are You Ready for DORA? Compliance Deadline Approaches on January 17, 2025
In less than two months, the Digital Operational Resilience Act (DORA) introduces stringent measures to enhance the EU’s financial sector’s digital resilience. The upcoming January 17, 2025 deadline creates urgency for organisations to act now and align with the regulation to mitigate ICT risks and cyber threats.
🌐 What is DORA?
The Digital Operational Resilience Act ensures that financial entities can withstand, respond to, and recover from ICT disruptions. By harmonising resilience requirements across the EU, it strengthens the stability of financial services while building consumer trust. Organisations must adopt robust ICT frameworks to comply with these new standards and safeguard their operations.
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🛡️ Who is Covered by DORA?
DORA applies to a wide range of organisations, including both financial entities and ICT service providers critical to the financial sector’s operations.
Financial Entities Directly Covered:
• Banks and credit institutions
• Insurance and reinsurance firms
• Payment service providers
• Electronic money institutions
• Investment firms
• Pension funds
• Crypto-asset service providers
• Crowdfunding platforms
• Trading venues (e.g., stock exchanges)
• Fund managers (UCITS and AIFMs)
Critical ICT Third-Party Providers:
• Cloud service providers
• Software vendors
• Data centre operators
• Providers of analytics or other ICT-related services essential to financial institutions
Even if your organisation is not a financial entity, you could fall under DORA if you provide key ICT services to financial sector firms. This highlights the regulation’s broad scope and its impact on both financial institutions and their technology partners.
🔑 DORA Key Requirements
Compliance involves addressing five key areas critical to operational resilience. Together, these elements form a comprehensive approach to managing ICT risks.
ICT Risk Management
Developing a framework to identify, monitor, and reduce ICT risks is essential. Governance structures and proactive monitoring help mitigate vulnerabilities before they escalate.
Incident Reporting
Prompt detection and reporting of significant ICT incidents are mandatory. For example, organisations must notify authorities quickly when disruptions affect operations.
Operational Resilience Testing
Regular testing ensures ICT systems remain prepared for potential threats. Significant entities must conduct threat-led penetration testing every three years to simulate real-world cyberattacks.
ICT Third-Party Risk Management
Financial entities must monitor risks linked to critical ICT service providers. Effective oversight ensures third-party services meet the resilience standards required under DORA.
Information Sharing
Collaboration through trusted networks enables organisations to share cyber threat intelligence. This proactive exchange strengthens the sector’s collective ability to combat risks.
🚨 Why You Need to Act Now
Delaying preparation exposes organisations to serious consequences. Non-compliance leads to fines, operational restrictions, and reputational damage. Financial entities, along with ICT providers, must act now to avoid scrutiny from regulators and clients alike.
Taking immediate action to assess readiness and implement necessary changes protects against disruptions. Strengthening digital resilience not only ensures compliance but also demonstrates an organisation’s commitment to stability and security.
🛠️ Steps to Achieve Compliance
• Evaluate Readiness: Start with a gap analysis to identify areas of non-compliance and prioritise improvements.
• Adopt a Comprehensive Strategy: Develop an ICT risk management framework that incorporates all DORA key requirements.
• Strengthen Third-Party Oversight: Review contracts with ICT providers and ensure alignment with the regulation.
• Invest in Resilience Testing: Conduct regular testing, including penetration testing, to validate the robustness of ICT systems.
• Train Your Team: Equip employees with the knowledge and skills needed to manage ICT risks and handle incidents effectively.
✅ Final Thoughts
The Digital Operational Resilience Act marks a pivotal shift for the EU’s financial sector. Organisations that prepare now will mitigate risks, enhance their operational resilience, and maintain compliance. With the January 17, 2025 deadline fast approaching, there is no time to waste.
Taking proactive steps today secures your organisation’s future. Compliance not only protects against penalties but also builds a foundation for long-term success.