11/03/2024 kde

DORA: Step-by-step guide for your firm to become compliant


In our last post, we introduced the Digital Operational Resilience Act (DORA) and why it’s crucial for the financial sector. Now, let’s dive deeper into DORA’s specific requirements and outline practical steps your firm can take to achieve compliance and enhance your digital resilience.

Key DORA Requirements

  • ICT Risk Management: DORA insists on a strong, forward-thinking strategy for managing ICT risks. This involves identifying, assessing, and addressing potential threats within tech systems. This includes regular updates to your risk management framework as your tech environment progresses
  • Incident Reporting: Timely and detailed reporting of significant digital incidents to regulators is essential. You’ll need clear procedures for classifying incidents, established communication channels with authorities, and thorough documentation.
  • Resilience Testing: DORA requires rigorous testing to assess your firm’s ability to withstand and recover from disruptions. This includes regular simulations, vulnerability assessments, and penetration testing.
  • Third-Party ICT Risk Management: With increased reliance on third-party providers, DORA emphasizes vigorous oversight. This involves due diligence on providers, contractual risk clauses, ongoing monitoring, and contingency plans for provider failures.

Who DORA applies to?

  • Depositories for securities
  • Providers of crypto-asset services
  • Counterparty clearing entities
  • Banking entities
  • Firms dealing with investments
  • Providers of account information services
  • Entities handling payments and issuing electronic money
  • Venues for trading and repositories for trade data
  • Overseers of essential benchmarks
  • Agencies assessing credit ratings
  • Entities offering crowdfunding services
  • Providers of data reporting services
  • Organizations managing occupational retirement funds
  • Enterprises involved in insurance and reinsurance
  • Entities managing alternative investment funds and investment management firms
  • Repositories for securitization data

10steps to dora

Getting DORA-Ready: A Preparation Checklist

  1. Conduct a Gap Analysis: Where Do You Stand? Don’t assume you’re ready. Compare your current practices meticulously against DORA’s requirements. Identify the biggest gaps that need immediate attention.
  2. Enhance Your ICT Risk Management Framework: Revise existing policies, implement advanced threat detection, and embed a culture of risk awareness across your organization.
  3. Develop Incident Response Plans: Create detailed procedures for incident classification, reporting, investigation, and recovery. Regularly test and update these plans.
  4. Prioritize Resilience Testing: Implement a regular testing schedule, including advanced scenarios like Threat Led Penetration Testing (TLPT) to uncover real-world vulnerabilities.

Reassess Third-Party Relationships: Audit existing providers against DORA’s standards, negotiate appropriate contracts, and develop contingency plans.

The Road to Digital Resilience

Embracing DORA isn’t simply about compliance; it’s about strengthening your firm’s overall digital resilience. Here are some additional points to consider:

  • Board-Level Involvement: DORA places responsibility on management; ensure your board is informed and engaged in oversight.
  • Proactive Investment: View DORA compliance as an investment in future-proofing your operations and protecting your reputation.
  • Seek Expert Guidance: DORA is complex. Partnering with specialized consultants can streamline the process

Stay Tuned!

In our last post, we’ll provide actionable strategies for DORA compliance, covering common challenges, practical tips, and the consequences of non-compliance.