The Digital Operational Resilience Act (DORA) is a regulation introduced by the European Union to ensure that financial entities can withstand, respond to, and recover from all types of Information and Communication Technology (ICT)-related disruptions and threats. This regulation is crucial for maintaining the stability and security of the financial sector.
Key Aspects of DORA
- ICT Risk Management: DORA mandates that financial institutions establish robust ICT risk management frameworks. These frameworks must cover risk identification, protection, prevention, detection, response, recovery, and communication strategies.
- Incident Reporting: Financial entities are required to detect and report significant ICT-related incidents to relevant authorities. This means having mechanisms in place for continuous monitoring and prompt reporting of incidents that could impact financial stability or customer interests.
- Operational Resilience Testing: DORA introduces mandatory resilience testing, including advanced methods like threat-led penetration testing. These tests evaluate the effectiveness of an entity’s measures to withstand ICT disruptions and breaches.
- Third-Party Risk Management: Financial institutions must ensure that their third-party service providers, such as cloud services, comply with DORA’s requirements. This includes conducting due diligence and continuous monitoring of third-party risks.
Steps to Achieve Compliance
To comply with DORA, companies need to take several steps:
- Develop a Comprehensive ICT Risk Management Framework: This involves identifying potential risks, implementing protective measures, and establishing protocols for detection, response, and recovery.
- Implement Continuous Monitoring and Reporting Systems: Companies must set up systems to continuously monitor their ICT environment and report any significant incidents to the relevant authorities promptly.
- Conduct Regular Resilience Testing: Engage in regular testing of your ICT systems, including advanced testing methods, to ensure they can withstand and recover from disruptions.
- Manage Third-Party Risks: Ensure that all third-party service providers comply with DORA’s requirements. This includes conducting thorough due diligence and ongoing monitoring of these providers.
- Train Staff and Raise Awareness: Educate employees about DORA requirements and the importance of ICT risk management. Regular training sessions can help ensure everyone is aware of their roles and responsibilities.
- Document and Review: Maintain detailed documentation of all risk management activities and regularly review and update your strategies to ensure ongoing compliance.
By following these steps, companies can not only comply with DORA but also enhance their overall operational resilience, ensuring they are better prepared to handle ICT-related disruptions and threats.
If you have any more questions or need further details, do get in touch.