Introduced in January 2025, the Digital Operational Resilience Act (DORA) is an EU regulation designed to help financial organizations better withstand, respond to, and bounce back from digital disruptions and cyber threats. It applies not only to traditional institutions like banks, insurers, and investment firms but also to fintech companies, credit providers, and the third-party tech and cloud vendors they rely on.
Why DORA Matters
As financial services become increasingly digitized, the sector’s reliance on external technologies grows too, creating new vulnerabilities. DORA addresses this challenge by providing a unified framework to strengthen operational resilience across the industry. It ensures firms aren’t just compliant, but actively prepared to manage IT-related risks, no matter where those risks originate, even when outsourced.
Key Requirements for Financial Institutions:
- IT Risk Management: Establish structured policies for identifying, assessing, and addressing technology-related risks.
- Incident Reporting: Quickly report major cyber incidents to regulators to ensure timely action and transparency.
- Digital Resilience Testing: Carry out routine, controlled stress tests to gauge how systems perform under cyber pressure.
- Third-Party Oversight: Assess risks and formalize contracts with all external technology providers to maintain accountability.
- Information Sharing: Collaborate with industry peers and authorities by exchanging threat intelligence to strengthen collective defense.