What is DORA?
An EU regulation that strengthens the cyber security legislation in the financial sector.
The Digital Operational Resilience Act (DORA) is an EU regulation aimed at strengthening cybersecurity and resilience in the financial sector. It ensures that banks, insurers, investment firms, and ICT providers can withstand, respond to, and recover from cyber threats and IT disruptions.
📅 Effective Date: January 16, 2023
🚀 Enforcement Starts: January 17, 2025
🔹 Who Does DORA Apply To?
DORA applies to all financial entities operating in the EU, including:
✅ Banks & Investment Firms
✅ Insurance & Pension Providers
✅ Payment & E-Money Institutions
✅ Crypto-Asset Service Providers
✅ Third-Party ICT Service Providers (Cloud, AI, Data Analytics, etc.)
🔹 Key Requirements Under DORA
1️⃣ ICT Risk Management 🔐
🔹 Companies must identify, assess, and manage cyber & IT risks.
🔹 Implement secure access controls, encryption, and backups.
2️⃣ Incident Reporting 🚨
🔹 Must report major cybersecurity incidents to regulators within a set timeframe.
🔹 Develop a detailed incident response plan.
3️⃣ Digital Operational Resilience Testing 🛠️
🔹 Regular penetration testing & vulnerability assessments are required.
🔹 Financial firms must simulate cyberattacks to test resilience.
4️⃣ Third-Party Risk Management 🤝
🔹 Financial entities must assess risks from third-party IT service providers.
🔹 Cloud services, AI providers, and outsourcing partners must follow DORA compliance.
5️⃣ Information Sharing 🔄
🔹 Encourages financial institutions to share cyber threat intelligence with industry peers.
🔹 Why is DORA Important for UK Businesses?
Although DORA is an EU law, UK businesses with operations in the EU must comply. This includes:
✅ UK banks, fintech firms, and insurers with EU customers.
✅ UK-based IT service providers working with EU financial firms.
✅ Multinational financial institutions with EU branches.
📢 UK regulators (FCA & PRA) may adopt similar operational resilience rules.
🔹 Penalties for Non-Compliance
💰 Fines up to 2% of annual global turnover.
📉 Risk of losing EU market access for financial & IT service providers.
📅 Effective Date: January 16, 2023
🚀 Enforcement Starts: January 17, 2025
🔹 Who Does DORA Apply To?
DORA applies to all financial entities operating in the EU, including:
✅ Banks & Investment Firms
✅ Insurance & Pension Providers
✅ Payment & E-Money Institutions
✅ Crypto-Asset Service Providers
✅ Third-Party ICT Service Providers (Cloud, AI, Data Analytics, etc.)
🔹 Key Requirements Under DORA
1️⃣ ICT Risk Management 🔐
🔹 Companies must identify, assess, and manage cyber & IT risks.
🔹 Implement secure access controls, encryption, and backups.
2️⃣ Incident Reporting 🚨
🔹 Must report major cybersecurity incidents to regulators within a set timeframe.
🔹 Develop a detailed incident response plan.
3️⃣ Digital Operational Resilience Testing 🛠️
🔹 Regular penetration testing & vulnerability assessments are required.
🔹 Financial firms must simulate cyberattacks to test resilience.
4️⃣ Third-Party Risk Management 🤝
🔹 Financial entities must assess risks from third-party IT service providers.
🔹 Cloud services, AI providers, and outsourcing partners must follow DORA compliance.
5️⃣ Information Sharing 🔄
🔹 Encourages financial institutions to share cyber threat intelligence with industry peers.
🔹 Why is DORA Important for UK Businesses?
Although DORA is an EU law, UK businesses with operations in the EU must comply. This includes:
✅ UK banks, fintech firms, and insurers with EU customers.
✅ UK-based IT service providers working with EU financial firms.
✅ Multinational financial institutions with EU branches.
📢 UK regulators (FCA & PRA) may adopt similar operational resilience rules.
🔹 Penalties for Non-Compliance
💰 Fines up to 2% of annual global turnover.
📉 Risk of losing EU market access for financial & IT service providers.