The Digital Operational Resilience Act (DORA) builds on existing institutional EU requirements in response to market-wide, ongoing digital transformation and evolution of potential new risks. The Act aims to set uniform requirement for the operational resilience of all financial entities operating in the EU, as part of a regulatory drive globally to maintain the financial system stability. Importantly, it also applies to critical technology partners that provide ICT related service to the financial services sector. DORA mandates that all participants in the financial services have the required safeguards in place to mitigate attacks and other risks, such as supplier failure, service deterioration, and concentration risk.
DORA represents a significant shift in how financial entities within the EU must manage and report their operational resilience, particularly in relation to information and communication technology (ICT) risk. As the Act legislation comes into full effect in January 2025, financial services must proactively prepare to navigate these new requirements.
The DORA framework revolves around five key pillars:
This blog post outlines the key steps financial entities need to take to ensure compliance and highlights the critical documentation needed under DORA.
5 Key Steps to Prepare for DORA
Develop Robust Monitoring Systems
Financial entities need to implement robust monitoring systems that can capture and report data in real time. This ensures that all stakeholders, including regulatory bodies, have access to accurate and up-to-date information regarding ICT-related risks and incidents. Real-time monitoring not only fulfils regulatory obligations but also builds trust by demonstrating a commitment to maintaining high operational resilience standards.
Enhance Contractual Documentation
Obtain and Maintain Certifications
Implement Comprehensive Testing Programs
Strengthen Third-Party Risk
In conclusion, the implementation of DORA marks a pivotal moment for the financial services industry, requiring a proactive approach to ICT risk management and operational resilience. By focusing on robust monitoring, enhanced documentation, obtaining certifications, comprehensive testing, and strengthening third-party risk management, financial entities can effectively prepare for DORA’s full implementation.
Would you like to find out how CC1 can help your business prepare for DORA? If so, reach out to us today!
Third-Party Risk Management
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