Finding DORA – A Journey to Compliance

"DORA is the regulation that occupies the forefront of many practitioners’ minds, with full compliance required by 17 January 2025. The scale of the new regulation might be EU-wide, but due to its breadth and attention to digital third parties, its reach is global." – excerpt, BCI Operational Resilience Report 2024.

The Digital Operational Resilience Act (DORA) is a European Union regulation. From the published BCI report, it's evident that many organizations, especially those outside the borders of the EU, are frustrated with either how to implement it or even if they should. However, it is vital that leadership recognizes that this regulation’s influence extends globally, affecting financial services and beyond. For South African companies, aligning with DORA can significantly enhance operational resilience, even if the direct legal mandate does not apply.

Why DORA Matters in South Africa

Resilience Beyond Borders

Global Interconnectedness: Financial institutions operate within an interconnected ecosystem, where disruptions in one region can impact others. DORA’s principles of robust operational resilience are globally relevant.

Third-Party Dependencies: South African organizations often work with international partners. DORA emphasizes the need to monitor third-party risks, which is critical for maintaining resilience.

Systemic Impact: Cyber incidents can have widespread consequences. DORA’s focus on resilience helps mitigate these risks, ensuring stability in South Africa’s financial sector.

Challenges and Deliverables

Resource Constraints: Implementing operational resilience (op res) requires substantial resources—time, expertise, and financial investment. Over 50% of organizations report struggling with these resource limitations, but the benefits, including enhanced continuity and customer trust, justify the effort.

Organizational Alignment: Operational resilience is not a siloed effort, it must integrate across all departments and levels of an organization, from IT to leadership. Achieving this alignment is crucial for effective implementation.

Four Key Factors Impacting Op Res Implementation

1.????? Leadership Buy-In: Successful op res initiatives need strong support from the board and executive leadership.

2.????? Holistic Approach: Operational resilience involves people, processes, and technology, requiring a comprehensive strategy.

3.????? Risk Culture: Fostering a culture of proactive risk management across all levels of the organization is essential.

4.????? Third-Party Ecosystem: Managing third-party dependencies and monitoring risks are critical components of operational resilience.

Op Res vs. Business Continuity (BC)

Operational resilience complements business continuity by focusing on prevention and adaptation, rather than just recovery. It encompasses a broader scope, ensuring the organization is prepared for a wide range of disruptions. While BC reacts to incidents, op res proactively strengthens the organization against potential threats, by continuously evaluating risks on an iterative basis.

Op Res Ownership

Operational resilience requires dedicated ownership, often led by the COO, but it can also stand as an independent function. At KnR Ability, we specialize in guiding and coaching organizations through the complexities of operational resilience. Our consultancy expertise ensures compliance and fortifies resilience, providing tailored solutions to navigate this journey.

The Journey to Compliance

Achieving DORA compliance and enhancing operational resilience is not just about meeting regulatory requirements but about building a robust and adaptive organization. Operational resilience should be viewed as a never-ending journey, always preparing for the fears of tomorrow and the search for safety on that day.