Dive into DORA: Mastering digital regulations

TLDR:

• The EU has introduced the Digital Operational Resilience Act (DORA) to strengthen the security of financial entities.
• DORA focuses on ICT risk management, incident management, third-party risk management, and TLPT testing.

In the article “Decoding DORA: Navigating the digital regulatory landscape,” Fabio Colombo discusses the key components of the Digital Operational Resilience Act (DORA) introduced by the European Union. DORA aims to enhance the security of financial institutions by addressing digital risks in the European Financial Services Sector.

The first pillar of DORA, ICT risk management, emphasizes the importance of fortifying digital defenses and implementing robust administrative procedures and risk assessments. Additionally, incident management requires financial entities to report digital incidents promptly and consistently, fostering a culture of transparency and resilience. The third pillar focuses on third-party risk management to safeguard against risks from external dependencies. TLPT testing introduces threat-led penetration testing to proactively identify and rectify vulnerabilities.

DORA emphasizes transparent governance, holding financial entities accountable to regulators and internal boards of directors. It requires companies to establish robust reporting structures to inform stakeholders about digital resilience measures. The article also highlights the need for a paradigm shift towards an Integrated Risk Management approach to address interconnected risks.

While DORA is an EU regulation, its principles have global implications for cybersecurity practices. It serves as a guide for financial entities to navigate the digital realm, promote resilience, and minimize disruptions in the ever-changing landscape of finance.