What is DORA?

Digital Operational Resilience Act

Why DORA Matters

As financial services become increasingly digital, the risk of ICT disruptions, cyberattacks, and technology failures has grown exponentially. DORA addresses the reality that a single ICT incident can cascade across interconnected financial systems, potentially causing systemic harm. Before DORA, ICT risk management requirements were scattered across various EU directives and national rules, creating inconsistencies and gaps. DORA creates a unified, comprehensive framework that ensures all financial entities — regardless of size or type — maintain adequate digital operational resilience.

Regulatory Implications

DORA establishes five key pillars of digital operational resilience:

• ICT risk management: Financial entities must establish and maintain comprehensive ICT risk management frameworks, including policies, procedures, and protocols to protect against ICT risks.
• Incident reporting: Major ICT-related incidents must be reported to competent authorities using standardized templates and timelines. Significant cyber threats must also be reported on a voluntary basis.
• Digital operational resilience testing: Regular testing including vulnerability assessments and, for significant entities, threat-led penetration testing (TLPT) at least every three years.
• Third-party risk management: Comprehensive requirements for managing risks from ICT third-party service providers, including contractual provisions, exit strategies, and concentration risk assessments.
• Information sharing: Voluntary cyber threat intelligence sharing arrangements between financial entities.

How DORA Relates to Compliance Monitoring

DORA applies from January 17, 2025, and the European Supervisory Authorities (ESAs) continue to finalize technical standards and guidelines. Compliance teams must track developments from ESMA, EBA, and EIOPA, as well as national competent authorities implementing supervisory approaches. RegPulse monitors all DORA-related publications, helping your team navigate the evolving requirements across ICT risk management, incident reporting, and third-party oversight.