The Digital Operational Resilience Act (DORA) is a landmark regulation that has reshaped how financial institutions approach cybersecurity and operational resilience. With the increasing reliance on digital infrastructure and the rise in cyber threats, the European Union (EU) introduced DORA to establish a uniform set of rules that financial entities must follow to ensure their ICT systems are resilient against disruptions.
Now that the compliance deadline has passed, businesses must ensure they are fully adhering to DORA’s requirements to avoid regulatory penalties and maintain operational resilience.
When Did DORA Come into Effect?
DORA was officially adopted by the European Parliament and Council on 14 December 2022. It came into force on 16 January 2023, and organisations were given a two-year transition period to implement the necessary measures.
The full compliance deadline was 17 January 2025. Since this date has now passed, financial institutions and ICT service providers must already be in compliance with DORA’s regulations. Those who have not yet met the requirements risk regulatory scrutiny, financial penalties, and reputational damage.
What is DORA?
DORA is an EU-wide regulatory framework designed to enhance digital operational resilience within the financial sector. It ensures that financial institutions can withstand, respond to, and recover from cyber threats and ICT-related disruptions.
Unlike previous national cybersecurity guidelines, DORA provides a harmonised legal framework that applies across all EU member states, ensuring a consistent approach to cybersecurity and operational resilience.
DORA applies to a wide range of financial entities, including:
- Banks and credit institutions
- Insurance companies
- Investment firms
- Payment service providers
- Crypto-asset service providers
- ICT third-party providers (including cloud service providers)
Why is DORA Important?
Cyber risks are more severe than ever, and the financial sector remains a top target for cybercriminals. DORA ensures that organisations have robust measures in place to mitigate cyber risks, reduce the impact of disruptions, and protect consumers and the wider financial ecosystem.
Key Pillars of DORA
DORA introduced five core areas of compliance that businesses must now adhere to:
1. ICT Risk Management
Organisations are required to have a comprehensive ICT risk management framework in place. This includes continuous monitoring, proactive threat detection, and incident response strategies to ensure uninterrupted operations.
2. Incident Reporting
Financial entities must report major ICT-related incidents to their regulators in a standardised and structured manner. This helps authorities monitor systemic risks and coordinate responses more effectively.
3. Digital Operational Resilience Testing
Regular penetration testing, red teaming, and security assessments are now mandatory for financial institutions. Businesses must demonstrate that they can withstand cyberattacks under real-world conditions.
4. Third-Party Risk Management
Organisations must ensure that third-party ICT providers meet the same cybersecurity and resilience standards. This means closer monitoring, stricter contracts, and more rigorous assessments of external service providers.
5. Information Sharing
Financial institutions are encouraged to share intelligence on cyber threats and vulnerabilities with industry peers and regulators to strengthen collective defences against emerging risks.
What Does DORA Mean for Businesses?
Now that the compliance deadline has passed, businesses must already be meeting DORA’s requirements. Those that are not yet fully compliant need to act immediately to avoid penalties and operational disruptions.
1. Compliance is No Longer Optional
DORA compliance is now a legal requirement. Regulators will be actively monitoring financial institutions and ICT providers to ensure they meet the necessary standards. Failure to comply could result in fines, sanctions, and reputational damage.
2. Increased Regulatory Scrutiny
Financial organisations are now expected to demonstrate ongoing compliance through audits, resilience testing, and reporting. Regulators will assess how well businesses have implemented their risk management and incident response frameworks.
3. Stricter Third-Party Governance
Businesses must ensure their suppliers and service providers are also compliant with DORA’s standards. Contracts may need to be revised, and additional monitoring processes put in place to mitigate third-party risks.
4. Cost of Non-Compliance
Any financial entity that has not yet fully implemented DORA’s requirements is at risk of facing fines, legal action, and operational disruptions. Businesses must act now to close any remaining gaps in their resilience strategy.
What Should Businesses Do Now?
If your organisation has not yet achieved full compliance with DORA, immediate action is required. Steps to take include:
- Conduct a compliance audit to assess any remaining gaps.
- Strengthen ICT risk management frameworks to meet DORA’s requirements.
- Ensure all regulatory reporting processes are in place for ICT-related incidents.
- Review third-party contracts to confirm vendor compliance with DORA.
- Schedule regular resilience testing to assess cyber readiness.
- Provide training and awareness programmes for employees.
Conclusion
DORA is already in full effect, and businesses must be compliant to avoid regulatory action. With financial services becoming increasingly digital, the regulation provides a strong foundation for cyber resilience and risk management.
At Soteria Cyber Solutions, we help organisations navigate DORA compliance by providing risk assessments, resilience testing, and cybersecurity consultancy.
If your business still has compliance gaps, we can help you get back on track.
