Preparing for DORA Compliance: Keys for Financial Institutions

The European Union’s Digital Operational Resilience Act (DORA) regulation is designed to improve the digital operational resilience of the financial sector. This legislation, which will come into force in January 2025, sets new requirements and standards for financial institutions to effectively manage technology risks and ensure the continuity of their services. As the deadline approaches, financial institutions must start implementing measures to comply with DORA. In this article, we will explain the key steps organizations should take to be prepared.

1.Review and Update Internal Technology Risk Management Policies

Financial institutions should assess the risks affecting their technology infrastructures, including analysis of potential cyber threats, operational failures or vulnerabilities in their systems.
Internal policies should include a proactive approach, not only to prevent cyber attacks, but also to ensure that organizations can respond quickly to any type of incident.

2. Digital Resilience and Continuity of Services Testing

The DORA Regulation requires financial institutions to conduct periodic digital operational resilience tests. These tests must simulate extreme situations, such as massive cyber-attacks or significant technology failures, to assess the organization’s ability to maintain continuity of its services. It is essential that these tests are comprehensive and cover both internal systems and those of technology service providers.

3. Management of Technology Service Providers

Entities must require their providers to implement adequate security measures, ensuring that they are prepared to deal with incidents and that they can collaborate efficiently during crisis situations. Transparency and collaboration in risk management between financial institutions and their providers are key to comply with DORA requirements.

4. Timely Notification of Incidents

DORA establishes strict timelines for the reporting of serious ICT-related incidents. Financial institutions must inform the competent authorities within a specified timeframe in the event of a significant incident. This obligation is not only intended to improve transparency, but also to facilitate a coordinated response to threats.
It is essential that institutions design internal systems to detect and report incidents quickly and effectively.

5. Strengthening Cybersecurity Awareness and Training

Organizational culture should promote a resilience mindset, where all employees are aware of technology risks and the importance of following established security procedures.

6. Collaboration and Information Sharing.

Information sharing platforms must be secure and allow institutions to collaborate efficiently without compromising the confidentiality of their data. Building collaborative networks among financial institutions will help strengthen the collective security of the industry and improve incident response capabilities.