DORA
The Digital Operational Resilience Act (DORA) is an EU regulation aimed at strengthening cybersecurity and resilience in the financial sector. It establishes uniform security standards for financial institutions and their third-party technology providers.
Scope and Applicability.
DORA applies to banks, insurance firms, investment companies, payment providers, and ICT third-party service providers that support financial institutions. It mandates strong cybersecurity controls, incident reporting, and operational resilience strategies across the EU financial ecosystem.
Key Requirements.
ICT risk management framework requiring continuous identification, assessment, and mitigation of cyber risks.
Incident reporting and response mandates financial entities to report major cybersecurity incidents within strict timelines.
Operational resilience testing through penetration testing, scenario-based stress testing, and business continuity exercises.
Third-party risk management imposing strict oversight on cloud providers, IT vendors, and outsourced financial services.
Information sharing and collaboration to mitigate systemic cyber threats.
Enforcement and Penalties.
Mandatory for financial institutions and ICT service providers operating in the EU.
Failure to comply can result in severe financial penalties and operational restrictions.
Regulatory enforcement by national authorities and the European Supervisory Authorities (ESAs).
Main Challenges.
Organizations struggle with implementing continuous cybersecurity monitoring, managing third-party risks, and meeting strict incident reporting requirements. Ensuring compliance across complex digital ecosystems is a significant challenge.
Blue INK Security provides DORA compliance consulting, ICT risk management strategies, and resilience testing solutions to help financial institutions meet regulatory requirements and strengthen cybersecurity resilience.