Wednesday, 15 January 2025
by Laura Vermeulen, Head of Strategy & Business Development at Indigita SA
The Digital Operational Resilience Act (DORA) applicable as of the 17th of January 2025 marks a pivotal regulatory step for EU financial institutions.
By standardizing cybersecurity and operational resilience practices, DORA offers a unified framework to address digital vulnerabilities and third-party risks. Beyond compliance, it is an opportunity to strengthen operations and build trust.
Harmonizing Operational Resilience
DORA aims to unify security standards across the EU financial sector, enabling institutions to mitigate ICT-related risks that could disrupt services, damage reputations, or incur penalties. It emphasizes robust oversight of third-party providers to reduce single points of failure, safeguarding the broader financial ecosystem.
Institutions must adopt a forward-looking resilience strategy encompassing both internal infrastructure and external relationships. DORA’s global scope affects any organization serving EU-based entities, reinforcing its transformative implications.
Action Plan for Financial Institutions
Strengthen Governance
Leadership plays a crucial role in DORA compliance. Senior management must oversee ICT risk strategies, allocate budgets, and ensure alignment with business goals. Clear governance structures should facilitate accountability and streamlined reporting.
Conduct a Gap Analysis
Begin with a gap analysis to identify weaknesses and prioritize improvements. This assessment serves as a foundation for aligning existing practices with regulatory expectations.
Document Assets and Dependencies
Map all ICT-supported business functions, assets, and interdependencies. Focus on critical assets and third-party providers, implementing robust risk management practices, vendor assessments, and contingency plans to safeguard operations.
Implement Cybersecurity and Resilience Measures
Adopt strong cybersecurity protocols, including access controls, patch management, and anomaly detection. Operational resilience measures—such as continuity policies, recovery plans, and regular scenario testing—should be integrated into daily operations to mitigate and recover from disruptions.
Foster Awareness and Training
Equip staff, management, and third-party providers with the knowledge to navigate DORA’s complexities. Training programs build a culture of compliance and reinforce shared responsibility for resilience.
Ensure Continuous Testing and Monitoring
Regular penetration testing and simulated scenarios are critical for identifying and addressing vulnerabilities. Automation can enhance efficiency and adaptability to evolving threats.
Turning Compliance into Opportunity
DORA compliance offers more than regulatory alignment—it enhances operational efficiency, reduces risks, and builds stakeholder trust. By investing in robust security and resilience frameworks, institutions can future-proof operations and strengthen their competitive edge in a digital-first environment.
Conclusion
DORA is not just a regulatory mandate; it is a catalyst for transformation. Financial institutions that embrace its requirements can safeguard operations, foster innovation, and secure long-term growth in an interconnected financial landscape.