ICT Risk Management: Outline of DORA Article 5-16 - Gieom

The ICT Risk Management Revolution: An Outline of DORA Articles 5-16

Sreemathe S
Business Analyst
Sreemathe S
Business Analyst

Due to continuous digital advancements, the financial sector is seeing significant hurdles in handling and reducing information and communication technology (ICT) risks. The Digital Operational Resilience Act (DORA) by the European Union aims to strengthen the digital infrastructure of financial institutions. Articles 5-16 of DORA offer a detailed plan for improving operational resilience by highlighting new solutions that have the potential to transform ICT risk management which is one of the pillars of the DORA regulation.

An Era of Enhanced Governance and Risk Management:
  • Strategic supervision and structures:

DORA’s vision focuses on changing financial institutions’ governance structures and risk management frameworks. An exclusive focus on strategic oversight guarantees that digital risks are given top priority by senior management, aligning ICT risk management with the organization’s overall strategic goals. This method not only emphasizes the significance of digital resilience but also integrates it into the fundamental structure of financial institutions.

  • Proactive identification and assessment of risks:

DORA requires financial institutions to use proactive risk detection and assessment procedures, which is a significant advancement. Institutions can enhance the security of their digital services by proactively identifying and addressing possible risks, thereby safeguarding the integrity and availability of their systems.

 Optimizing Testing and Incident Response:

  • Novel Testing Methods:

DORA promotes an innovative method for testing resilience by integrating the notion of Threat-Led Penetration Testing (TLPT). Financial companies can use this collaborative testing platform to simulate advanced cyber-attacks, which helps them evaluate their defensive capabilities accurately. Allowing pooled testing enables numerous institutions to engage in a single TLPT exercise, promoting collaboration and mutual learning among financial entities.

  • Efficient Incident Response Protocols: 

DORA expands on strong testing methods by detailing thorough incident response and recovery strategies. These techniques guarantee that financial institutions can promptly address ICT problems and sustain operational continuity during disruptions, reducing the impact on their services and clients.

Encouraging cooperation and perpetual improvement:
  • Cooperative Security and Collective Knowledge Acquisition:

DORA Articles promote a collaborative security environment by urging financial firms to participate in pooled testing and exchange insights on new risks. This collaborative strategy utilizes the combined knowledge and assets of the financial industry to improve digital risk resilience comprehensively.

  • An Environment Focused on Ongoing Advancement:

DORA’s adaptable structure for utilizing both internal and external resources in TLPT exercises demonstrates its dedication to ongoing enhancement. This equilibrium allows institutions to utilize their internal knowledge while also gaining impartial external evaluations, fostering a continuous improvement culture in handling ICT hazards.


Articles 5-16 of DORA introduce innovative ways for managing ICT risks in the financial industry, representing a significant change in the approach to ICT risk management. DORA establishes a new standard for digital operational resilience by including strict governance, advanced testing standards, and a cooperative security and learning strategy. Financial institutions adapting to these progressive policies will enable the European financial ecosystem to effectively handle the challenges of the digital era with enhanced security, flexibility, and cooperation. This innovative method safeguards financial institutions and their customers from online risks while enhancing the credibility and robustness of the worldwide financial system.

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