The Digital Operational Resilience Act (DORA) is one of the latest European Union regulations aimed at enhancing the operational resilience of the financial sector against digital threats. It came into force on January 17, 2025, covering a wide range of financial institutions and IT service providers. In response to the growing number of cyberattacks and increasing dependence on technology, DORA ensures that the financial sector is prepared for potential digital threats and unforeseen disruptions.

Who does the new regulation apply to?

DORA applies to a variety of entities, including banks, investment firms, insurers, and pension funds. It also covers stock exchanges, clearing systems, fintech companies, and payment service providers. Moreover, the regulation is highly relevant to technology companies that provide services to the financial sector, such as cloud providers, data centers, and software suppliers.

DORA’s requirements for businesses

One of the core pillars of DORA is ICT risk management. Companies must implement comprehensive cybersecurity strategies, regularly update security policies, and identify potential threats. A crucial element of compliance is incident response preparedness, which includes monitoring, threat detection, and mandatory reporting of security incidents to supervisory authorities such as the European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA), and the European Securities and Markets Authority (ESMA).

DORA also emphasizes digital resilience testing. Companies are required to conduct regular penetration tests and assess their readiness for cyberattacks. Additionally, they must perform system failure simulations and establish effective data recovery mechanisms to ensure business continuity.

Another key aspect of DORA is the oversight of third-party IT service providers. Financial institutions must thoroughly evaluate the risks associated with outsourcing, implement contracts defining security responsibilities, and conduct regular audits of their external partners. This ensures better control over critical IT services and minimizes outsourcing risks.

The regulation also mandates cooperation in cybersecurity. Organizations covered by DORA are required to share information about threats and incidents with other entities to raise awareness and enhance protection against cyberattacks. This collaboration extends to both the public and private sectors, aiming to create a stronger and more resilient financial ecosystem.

How to be in line with DORA?

To comply with the new regulation, businesses should conduct an audit of their IT systems and risk management processes. Implementing modern incident monitoring tools and developing a comprehensive threat response strategy is crucial. Additionally, organizations should invest in employee training to increase cybersecurity awareness and ensure the effective implementation of crisis procedures.

Conclusion

DORA is a groundbreaking regulation that will significantly change how technological risk is managed in the financial sector. Companies that adapt to the new rules will not only avoid penalties but also enhance their resilience to digital threats. Implementing strong security measures, conducting resilience testing, and fostering cybersecurity collaboration are crucial steps for DORA compliance.

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