Summary
DORA, or the Digital Operational Resilience Act, is new regulation from the EU aimed at improving how financial entities manage ICT (Information and Communication Technology) risks. It’s applicable to EU financial institutions, such as banks and insurers, and extends to their ICT service providers, including third-party vendors that deliver critical services.
The act encompasses various areas, including cybersecurity resilience requirements, incident reporting obligations, and oversight of third-party service providers’ operational robustness. As of January 17, 2025, companies are expected to be compliant, with penalties for those failing to meet the established standards.
Key Points
- DORA regulates ICT risk management for EU financial entities and their third-party service providers.
- It applies to both European and non-European companies if they provide ICT services to EU financial institutions.
- Compliance obligations vary based on whether a service is deemed critical, important, or minimally significant.
- Failure to comply may result in regulatory actions, such as penalties, reputational damage, or loss of business relationships.
- DORA became fully applicable in January 2025, expecting immediate compliance across EU jurisdictions.
Why should I read this?
If you’re in the tech game, especially working with financial institutions, this is your crash course on DORA—get clued up or risk falling behind! The article breaks down what you need to know about compliance and its implications for your services. Don’t let your competitors get ahead while you’re still figuring out the requirements; we’ve done the homework for you!