Achieve DORA Compliance Now: Strengthen Your Cybersecurity

Cyberattacks remain a significant concern. In 2022, the European Central Bank reported a concerning statistic. One in two cyberattacks in the Eurozone were successful. This highlights the ongoing challenge for financial institutions. Despite numerous efforts to improve cybersecurity, this figure persists. It suggests that a more fundamental shift is necessary. Structural decision-making is crucial. DORA compliance is a key factor in achieving this.

The European Union acknowledges the persistent cyber threat. In response, it seeks to bolster the defences of its financial sector. It has introduced new legislation to achieve this goal. This is the Digital Operational Resilience Act, or DORA.

DORA is not simply another regulation. It signifies a pragmatic approach from the European Union. It harmonises cybersecurity rules across Europe. Previously, individual states often implemented their own strategies. This resulted in a fragmented approach. Furthermore, DORA represents a departure from adopting external frameworks.

This pragmatism underpins DORA’s effectiveness. The regulation acknowledges the current difficulties faced by financial institutions. It empowers them to enhance their security posture. They can improve their ability to prevent, contain, and respond to cyber incidents. Ultimately, DORA compliance elevates operational resilience. It becomes a cornerstone of the European economic ecosystem.

How DORA enhances cyber resilience

DORA takes a holistic approach to cybersecurity. It considers not only financial entities themselves. It also includes their subcontractors and service providers. Even cloud service providers fall within its scope. In addition to traditional risk management, DORA introduces accountability. This concept is familiar from other regulations, such as GDPR.

This focus on accountability is essential. It ensures that all processes within DORA’s remit are secure. This is particularly important in the modern financial landscape. Organisations increasingly rely on outsourced services. Consequently, this approach necessitates a change in perspective. Companies must prioritise the management of risks associated with third parties.

Third-party risk management with DORA

Third-party risk management is a central innovation within DORA. Similar to GDPR, it addresses the cybersecurity implications of working with third parties. This has several key consequences:

• Compliance: IT service providers to the financial sector must comply with DORA. This requirement extends throughout the entire supply chain.
• Identification: Financial entities must clearly identify critical assets. This includes both their internal systems and those of their external partners. DORA provides a comprehensive definition of critical functions.
• Internal control: Financial institutions must implement robust internal controls. This includes a thorough evaluation of their audit processes. These processes may require adjustments to ensure compliance. These obligations surrounding internal controls raise important questions. Many seek clarification on the technical details. However, the European Commission will provide guidance in the coming months. This will be through Regulatory Technical Standards (RTS) and Implementing Technical Standards (ITS). These standards must meet specific criteria. They must be proportionate and periodic. They must also be comprehensive and well-documented. Importantly, they must include considerations for third parties.

The impact of DORA

DORA compliance undoubtedly poses a challenge for financial institutions. Nevertheless, it also offers significant advantages. It facilitates a structured and comprehensive approach to cyber resilience. It promotes consistency in how organisations manage operational risks. Crucially, it achieves this without stifling innovation.

DORA is a complex regulation. However, financial institutions should not view it as a burden. They should not seek ways to circumvent its requirements. Instead, they should embrace it as a valuable tool. It can enhance their security posture and provide a competitive edge.

For an even more complete analysis of the DORA directive, see our white paper : Ensure your Cyber Compliance with DORA