As the financial sector braces for the implementation of the Digital Operational Resilience Act (DORA), it’s imperative for financial entities to prepare meticulously. This new regulatory framework mandates robust measures to ensure that financial institutions can withstand and recover from cyber threats. Here’s how to get ready for DORA compliance.

Key Steps to Achieve DORA Compliance

1. Develop New Operational Resilience Capabilities

DORA requires financial institutions to establish robust systems capable of withstanding cyber threats. This involves developing new operational resilience capabilities that can handle disruptions and ensure continuity of critical operations.

2. Implement Rigorous Testing and Continuous Monitoring

Proactive testing and continuous monitoring are essential. By conducting regular and rigorous testing, financial entities can ensure their systems are resilient to potential disruptions. Continuous monitoring helps in the early detection of vulnerabilities, enabling timely mitigation.

3. Manage Third-Party ICT Risks

Third-party ICT service providers can often be a weak link in the cybersecurity chain. DORA mandates that financial entities manage these risks effectively. This includes securing all ICT service providers and ensuring they adhere to the same robust security standards.

4. Establish Robust Incident Management and Reporting Systems

Effective incident management and reporting systems are crucial. Early detection and rapid response to cyber incidents can significantly mitigate damage. Financial entities must establish systems that can promptly report incidents as mandated by DORA.

5. Participate in Information Sharing Networks

Collaboration is key to staying ahead of cyber threats. DORA encourages financial entities to participate in information sharing networks. By sharing cyber threat intelligence, entities can better prepare for and respond to emerging threats.

Aligning Governance and Practices to DORA’s Resilience Pillars

As it gets closer to the enforcement of DORA, companies must align their governance and practices with the act’s resilience pillars. This process begins with identifying a roadmap that includes key deliverables necessary to materialize a digital resilience strategy.

Initial Gap Assessment

The first step in preparing for DORA compliance is conducting an initial gap assessment. This involves analyzing the company’s profile to define the current level of maturity, including compliance with existing guidelines such as ESA Guidelines, NIS, and CROE, as well as IT Risk Management strategies and standards like ITIL, COBIT, NIST CSF, and ISO.

Identifying the Delta in DORA Requirements

The gap assessment will help identify the delta between current practices and DORA requirements. This allows financial entities to lay out a roadmap that prioritizes efforts needed to develop a sound digital resilience strategy and framework.

Adapting to New Regulatory Technical Standards

As regulators define new Regulatory Technical Standards (RTSs) and Implementation Technical Standards (ITSs), it’s crucial for the digital resilience strategy and framework to remain responsive. This flexibility will allow financial entities to incorporate new standards seamlessly.

Timeline for DORA Compliance

• Beginning of 2025: DORA comes into force. The European Supervisory Authorities (ESAs) will expect mandatory reports as outlined by DORA. These reports will be used to assess gaps in the market. Financial entities must focus on maturing their Digital Resilience Framework and be prepared for annual evaluations, testing, and reporting.
• End of 2025: Mandatory penetration testing becomes enforceable. Financial entities will need to obtain certification from ESAs.

Conclusion

Preparing for DORA compliance is a strategic imperative for financial entities. By developing new operational resilience capabilities, implementing rigorous testing and continuous monitoring, managing third-party ICT risks, establishing robust incident management systems, and participating in information sharing networks, financial entities can ensure they meet DORA’s stringent requirements.

Aligning governance and practices with DORA‘s resilience pillars, conducting a comprehensive gap assessment, and remaining agile to adapt to new standards are critical steps in this journey. As DORA’s enforcement date approaches, financial entities must prioritize these preparations to ensure robust digital resilience and compliance with this transformative regulatory framework.

For further guidance on preparing for DORA compliance, feel free to reach out to our expert team or leave your questions in the comments section below. Stay resilient, stay compliant!