With increasing cyber threats and the growing dependence on digital infrastructure, DORA is designed to ensure that financial entities can withstand, respond to, as well as recover from all types of Information and Communication Technology (ICT) disruptions.

Two key pillars of DORA are Enhanced Reporting and Regular Testing, both of which require substantial organizational adjustments.

Enhanced Reporting: Building a Framework for Incident Detection and Response

One of DORA’s major requirements is the establishment of clear reporting protocols for ICT-related incidents. This places an emphasis on incident detection and reporting capabilities across all financial institutions.

Once DORA comes into effect financial organizations will be required to have advanced systems in place that can detecting, assess, and reporting significant cyber incidents. These incidents can range from data breaches and system outages to more severe disruptions affecting critical operations. Incident response teams will need to be prepared with the necessary skills to act swiftly and efficiently, minimizing the impact of any disruption.

Regular Testing: Strengthening Resilience Through Continuous Assessment

DORA also mandates regular vulnerability assessments, penetration testing, and incident response drills. This means that financial institutions are required to frequently test their resilience against potential cyber threats.

Why is this important?

Cyber threats evolve rapidly, and static security measures are no longer sufficient. By enforcing regular testing, DORA is encouraging financial entities to stay ahead of cybercriminals.

DORA marks a turning point for the financial sector’s approach to cyber resilience. By emphasizing enhanced reporting and regular testing, the regulation not only improves the detection and response to ICT incidents but also requires institutions to proactively defend against emerging cyber threats. As the deadline for DORA compliance approaches, financial institutions must make Cyber Security and operational resilience a top priority.