Upcoming EU’s Digital Operational Resilience Act (DORA)

As we approach the effective date of the EU's Digital Operational Resilience Act (DORA) on January 17, it's essential for businesses to understand the implications of this critical regulation. DORA aims to reinforce the operational resilience of financial institutions and key ICT (Information and Communication Technology) service providers across the EU.

What is DORA?

DORA establishes a comprehensive framework to ensure that companies can withstand, respond to, and recover from ICT-related disruptions and cyber threats. This regulation emphasises the need for robust risk management processes, incident reporting, and continuous testing of digital systems to maintain operational continuity and security.

Key Requirements of DORA:

1. Risk Management: Businesses must implement an ICT risk management framework that aligns with regulatory expectations and best practices.

2. Incident Reporting: Organisations are required to report significant ICT-related incidents to competent authorities within stringent timelines.

3. Digital Testing: Regular testing of ICT systems, including penetration testing and vulnerability assessments, will be mandatory to identify and mitigate potential weaknesses.

4. Third-Party Risk Management: Companies must assess and manage risks associated with their third-party service providers, ensuring compliance with DORA’s standards.

5. Business Continuity: A clear strategy for business continuity and disaster recovery will be necessary, ensuring that critical functions can be maintained in the face of disruptions.

Impact on Businesses:

The advent of DORA will have a profound effect on businesses across the financial sector and beyond. Companies must now prioritize operational resilience, ensuring their systems are robust enough to withstand escalating cyber threats and ICT disruptions. Non-compliance could result in severe penalties, reputational damage, and increased scrutiny from regulatory bodies.

Preparing for DORA:

To comply with DORA effectively, businesses should take the following steps:

Conduct a Gap Analysis: Assess current operational resilience practices against DORA requirements to identify areas for improvement.

Develop a Comprehensive ICT Risk Management Framework: Implement a solid framework that addresses risk assessment, security measures, and incident management.

Establish Incident Reporting Mechanisms: Set up processes for timely reporting of ICT incidents to ensure compliance with regulatory timelines.

Invest in Testing: Regularly conduct digital resilience tests to ensure systems can withstand potential disruptions.

Strengthen Third-Party Oversight: Review and enhance due diligence processes for third-party service providers to manage associated risks.

How We Can Help:

At AVUKE, we specialise in strategic compliance, legal, and risk management solutions tailored to meet the unique challenges posed by DORA. Our team of experts can guide you through the compliance process, helping you to:

Develop and implement a robust ICT risk management framework.

Conduct thorough gap analyses and risk assessments.

Establish effective incident reporting and management systems.

Facilitate digital resilience testing and training.

Enhance oversight of third-party risk management.

As the effective date of DORA approaches, partnering with AVUKE can position your business for success in this new regulatory environment. Don’t wait until the last minute, start your preparations today to ensure compliance and strengthen your operational resilience.