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Why is DORA important?

The Digital Operational Resilience Act (DORA) represents a significant regulatory framework designed to enhance the security of financial institutions against increasingly complex digital threats. As the financial sector becomes more intertwined with technology, the urgency for robust digital security has never been greater. But why should I do the Assessment:

Strengthening Cybersecurity Posture
With cyber threats evolving continuously, financial institutions are prime targets due to the sensitive nature of the data they handle. The DORA Assessment encourages companies to evaluate their current cybersecurity measures, identify vulnerabilities, and implement enhanced security protocols. By adhering to DORA's guidelines, organizations can significantly bolster their defenses against cyberattacks.
Regulatory Compliance
DORA establishes a harmonized framework across EU member states, providing clear guidelines on operational resilience. Companies that engage in DORA assessments can ensure compliance with these regulations, which is vital for avoiding substantial fines, legal repercussions, and reputational damage. Staying ahead of regulatory requirements not only safeguards organizations but also instills confidence among stakeholders.

The regulation comes into force on 17.01.2025. Until then, all companies in the financial sector need to be compliant with the regulations required by DORA. As DORA involves many different regulations and processes, it is important to address the topic as early as possible.

Who Needs to be Compliant
with DORA?

Financial
Institutions

This category encompasses a wide range of entities, including banks, investment firms, insurance companies, payment service providers, and other firms operating within the financial services sector. Any entity that is regulated under existing financial regulations in the EU, such as the Capital Requirements Regulation (CRR) or the Markets in Financial Instruments Directive (MiFID), will fall under DORA's scope.

Group Structures and Holding Companies

Financial groups or conglomerates operating across multiple jurisdictions within the EU will need to ensure that all their subsidiaries and affiliates comply with DORA, fostering a consistent approach to risk management and resilience.

Third-Party Service Providers

Any organization providing critical services to financial institutions, including cloud service providers, IT support, data management companies, and cybersecurity firms, must also comply with DORA. DORA establishes specific requirements for these third parties, emphasizing the need for robust contracts and risk management practices.

What are the components of DORA?

1.

ICT Risk Management

DORA emphasizes the need for robust Information and Communication Technology (ICT) risk management frameworks. Organizations are required to establish comprehensive risk management processes that identify, assess, and mitigate risks associated with their digital operations. This includes setting up appropriate governance frameworks, policies, and procedures to manage technology-related risks effectively.

2.

Handling, Classification, and Reporting of ICT-Related Incidents

Financial institutions are mandated to implement clear procedures for identifying, classifying, and reporting ICT-related incidents. This component emphasizes the importance of timely notification to regulatory authorities and stakeholders, as well as documenting incidents to improve future risk management and response capabilities. Institutions must also classify incidents according to severity and potential impact to ensure appropriate responses.

3.

Testing of Digital Operational Resilience Including Threat-Led Penetration Testing

DORA requires institutions to conduct regular testing of their digital operational resilience, including threat-led penetration testing. This involves simulating real-world cyber threats to assess the effectiveness of existing security measures and incident response plans. By regularly testing their resilience, organizations can identify vulnerabilities and make necessary adjustments to enhance their security posture.

4.

Management of ICT Third-Party Risk

Given the reliance on third-party providers for critical services, DORA places significant emphasis on the management of risks associated with these ICT third parties. Financial institutions must carry out thorough due diligence on third-party vendors to assess their operational resilience. This includes evaluating their security measures, risk management practices, and business continuity plans to ensure they align with the institution's overall resilience framework.

5.

Monitoring Framework for Critical ICT Third-Party Service Providers

DORA mandates the establishment of a monitoring framework for critical third-party service providers. This involves continuous oversight of third-party performance and resilience, ensuring that they meet established standards. Institutions must regularly review and assess the operational risks posed by these providers and implement robust contractual arrangements that ensure compliance with DORA's requirements.

6.

Agreements on Information Sharing as Well as Cyber Crisis and Emergency Exercises

Collaboration and information sharing are key elements of DORA. Institutions are encouraged to engage in agreements that facilitate the exchange of information about threats, vulnerabilities, and incidents. Additionally, regular cyber crisis and emergency exercises must be conducted to test response capabilities and ensure effective communication among stakeholders during a crisis. These exercises help organizations prepare for actual incidents and improve their readiness to respond.

Why us?

We will assist you to get and stay compliant with DORA with our structured methodology

Structured Approach to Compliance Checking:
We provide you with a clear and systematic framework to assess whether your organization and your service providers comply with DORA requirements. Through our proven methodologies, you can ensure that all relevant aspects of compliance are addressed.
Establishing a Comprehensive ICT Risk Management Framework:
We assist you in building a robust ICT risk management system tailored to the specific needs of your organization. Effective risk management is key to identifying, evaluating, and mitigating potential threats.
Testing for Vulnerabilities and Security Risks:
We conduct thorough testing to identify vulnerabilities and security risks within your IT systems. Our specialized approach to security assessment allows you to detect potential risks before they escalate into serious issues.
Compliance Assessment of Your Service Providers:
We help you ensure that your service providers also meet DORA requirements. Through targeted assessments, we evaluate the compliance of your partners and other third parties to ensure they have adequate security measures in place.