🔹 Definition
The Digital Operational Resilience Act (DORA) is a regulation adopted by the European Union that establishes a unified framework for the cybersecurity and ICT risk management of financial entities. Enforced from January 17, 2025, DORA aims to ensure that all participants in the EU financial sector can withstand, respond to, and recover from ICT-related disruptions such as cyberattacks, data breaches, or system failures.
DORA applies not only to banks and insurers but also to fintech firms, crypto-asset service providers (CASPs), cloud service providers, and third-party technology partners offering critical services to financial institutions.
🔹 Frequently Asked Questions (FAQs)
Q1: What are the key requirements under DORA?
- ICT Risk Management: Entities must establish strong internal frameworks to manage and mitigate ICT risks.
- Incident Reporting: Major ICT-related incidents must be reported to the competent authority within tight timelines.
- Digital Operational Resilience Testing: Regular advanced testing (including threat-led penetration testing) is required for critical systems.
- Third-Party Risk Management: Firms must assess and manage risks from ICT service providers, including cloud platforms.
- Information Sharing: Encourages threat intelligence exchange between regulated entities.
Q2: Who does DORA apply to?
DORA applies to a wide range of financial-sector entities in the EU, including:
- Banks, payment institutions, e-money firms
- Asset managers, investment firms
- Insurance and reinsurance companies
- Crypto-asset service providers (CASPs)
- Critical ICT third-party providers (subject to oversight)
Q3: How is DORA different from other cybersecurity regulations?
DORA is unique in that it:
- Harmonizes ICT risk rules across the entire EU financial sector
- Applies to both financial institutions and their ICT providers
- Includes binding and testable resilience standards
- Embeds operational resilience into broader regulatory compliance and supervision frameworks
Q4: How does DORA impact compliance and RegTech strategies?
Firms subject to DORA must:
- Integrate cyber risk into their AML, data protection, and business continuity programs
- Update vendor due diligence processes to assess ICT partner risk
- Implement automated reporting tools and real-time monitoring systems
- Align with EU supervisory expectations and avoid penalties for non-compliance
