In our digital era, reliance on information and communication technology (ICT) continues to grow. The heightened digitization and interconnectivity, however, escalate the risks associated with ICT, rendering it more susceptible to threats and disruptions in ICT services. Despite the pervasive use of ICT systems being a fundamental aspect of financial entities, there remains a need for improved attention to and integration of digital resilience within their overarching operational frameworks.
Digital Operational Resilience Act (DORA) , is a regulatory framework , mandating the financials firms , ensure their capability to endure, respond to, and recover from various ICT-related disruptions and threats. These requirements are standardized across all European Union (EU) member states, with the primary objective of prevention and mitigation of such incidents.
As defined in the regulation ‘Digital Operational Resilience’ means the ability of a financial entity to build, assure and review its operational integrity and reliability by ensuring, either directly or indirectly through the use of services provided by ICT third-party service providers, the full range of ICT-related capabilities needed to address the security of the network and information systems which a financial entity uses, and which support the continued provision of financial services and their quality, including throughout disruptions.
DORA encapsulates its essence within five fundamental pillars, each addressing different facets or domains within ICT and cybersecurity. This establishes a holistic digital resilience framework for the entities involved.
The five pillars include ICT Risk Management, ICT related Incident Management, Digital Operational Resilience Testing, ICT Third Party Risk Management, Information Sharing.
Some of the benefits of implementing and adhering to DORA includes are as follows:
- Enhanced Organizational Robustness: Adhering to DORA guidelines fortifies the overall resilience of firms in the financial sector, ensuring a strengthened foundation to withstand various operational challenges.
- Improved Cybersecurity Posture: Addressing DORA security concerns contributes sign ificantly to enhancing the cybersecurity posture of the firm. This, in turn, reinforces its credibility and viability within the competitive landscape of the financial services industry.
- Better Risk Assessments: Firms following DORA guidelines benefit from improved risk assessments. This proactive approach enables a more comprehensive understanding of potential threats and vulnerabilities, facilitating informed decision-making.
- Faster Decision making: DORA compliance streamlines decision making processes. By having a structured framework in place, organizations can respond promptly to emerging challenges and make informed decisions without compromising on effectiveness.
- Strengthened ICT management: DORA guidelines provide a framework for robust ICT management. This involves efficient handling of information technology resources, ensuring their security, reliability, and optimal performance, ultimately contributing to the organization’s overall operational resilience.
- A Pathway for Investment and Growth: DORA compliance creates a clear pathway for investment and growth. Organizations that prioritize digital operational resilience are better positioned to attract investments and pursue sustainable growth strategies, leveraging the confidence of stakeholders in their ability to navigate the evolving landscape of the financial sector.
Dora360 is a comprehensive platform designed to assist firms of all sizes to assess, implement and monitor their operational resilience requirements in alignment with DORA regulatory standards.
The platform operates on a modular basis, allowing firms to selectively implement necessary functionalities based on identified gaps. Dora360 platform includes modules like policy management, process visualization, risk management, incident management, supply chain management, and resilience management.
Offering flexibility, the platform supports both on-premises and cloud deployment, in addition to managed services provided by a team of experts.