DORA

DORA harmonizes digital resilience rules in the financial sector, boosting IT security and risk governance for banks and their suppliers.

 

 

What is a DORA?

DORA (Digital Operational Resilience Act) is a European regulation that introduces a unified framework for managing ICT and cybersecurity risks in the financial sector. Its main goal is to ensure that banks, insurance companies, investment firms—and their third-party IT providers—can withstand, respond to, and recover from cyber incidents without major disruption. DORA applies not only to financial institutions but also to critical technology providers, including cloud and software vendors.

 

What DORA means in practice

  • Mandatory resilience testing – companies must regularly test their ability to resist cyberattacks.
  • Incident tracking and reporting – cyber incidents must be documented and reported to regulators.
  • Third-party risk assessments – organizations must evaluate and manage risks related to external IT service providers.
  • Top-level accountability – senior management is directly responsible for managing ICT risks.
  • Supervision of critical providers – certain tech vendors may fall under direct EU oversight.

 

DORA is not just about technology—it addresses governance, accountability, and supply chain security as core elements of operational resilience.

 

How DORA differs from other regulations

  • DORA vs. NIS2
    • DORA: focuses specifically on financial services.
    • NIS2: covers a broader range of critical sectors (energy, healthcare, etc.).
  • DORA vs. GDPR
    • DORA: centers on system resilience and service continuity.
    • GDPR: focuses on the protection of personal data.

 

DORA stands out by placing digital resilience on the same level as financial risk, backed by specific and measurable requirements—not just best practices.

 

How to implement DORA in your organization

Action steps for financial firms (and their suppliers):

  1. Assess applicability – Determine whether and how DORA applies to your operations.
  2. Establish a formal ICT risk management framework.
  3. Define incident response and reporting procedures.
  4. Review contracts and controls with third-party vendors.
  5. Plan and conduct regular resilience tests (e.g., tabletop exercises, red teaming).
  6. Train leadership and employees – resilience is a shared responsibility.

 

Many companies underestimate the scope of DORA, especially regarding supply chains and executive liability. Yet penalties for non-compliance can be significant—not just financially, but reputationally. Starting preparation early is not only wise—it’s essential.

back to glossary