Nowadays, with digital technologies playing a major role in both our personal and professional life, it is more crucial than ever to establish a solid foundation that ensures operational resilience. A significant step forward, the Digital Operational Resilience Act (DORA) was introduced by the European Union in recognition of this. This Act aims to strengthen cybersecurity, protect the digital infrastructure, and ensure the financial industry operates securely and continuously in the face of ever-evolving digital threats.
DORA provides a comprehensive solution to address the challenges arising from the increasing digitalization of financial services. The primary objective of DORA is to create a cohesive framework that enhances the operational resilience of the financial sector, which consists of credit institutions, investment firms, and other financial organizations.
- Incident Reporting and Notification: DORA mandates that financial companies disclose major incidents that could result in severe service outages as soon as possible. This includes any event that could have an impact on the ongoing operations, such as cyberattacks or system failures. Furthermore, DORA specifies how these circumstances should be communicated to customers and the relevant authorities.
- Risk Management and Business Continuity Planning: Financial institutions must put in place strong business continuity strategies and efficient risk management procedures. In order to guarantee that essential functions remain resilient even in the face of unforeseen circumstances, DORA highlights the significance of recognizing and reducing potential risks.
- Third-Party Risk Management: DORA emphasizes the supervision of third-party providers since it recognizes the interconnectedness of the digital economy. Financial organizations have to evaluate the operational robustness of their essential third-party service providers and make sure they follow the same legal requirements.
- Testing and Exercising: To find gaps and vulnerabilities, DORA promotes routine testing and exercise of the operational resilience plans. Financial institutions should test their preparedness for a disruption by doing scenario-based simulations.
- Supervisory Authorities: The Supervisory Authorities assigned by EU member states will be essential in evaluating the operational resilience of financial firms and to follow the implementation of the legislation’s terms by enterprises within the EU.
Which are the entities in-scope of DORA?
DORA is applicable to all EU financial institutions. This covers traditional financial organizations like banks, credit unions, and investment businesses as well as nontraditional organizations like crowdfunding websites and companies that offer services for digital assets.
Interestingly, several businesses that are normally exempt from financial restrictions are also covered by DORA. For instance, third-party service providers—such as cloud service providers and data centers—who provide ICT systems and services to financial organizations are required to abide by DORA regulations. DORA also includes companies that offer vital third-party information services, such as data analytics and credit rating services.
After the standards are approved and the January 2025 deadline has passed, implementation of the requirements will be left to the “competent authorities,” or authorized regulators in each EU member state. The relevant authorities may request that financial firms implement specific security measures and remediate vulnerabilities. They will also be able to impose administrative penalties and, in some cases, criminal penalties on non-compliant organizations. Every member state will determine the penalty on an individual basis.
ICT providers deemed “critical” by the European Commission will be directly supervised by “Lead Overseers” from the ESAs. Lead Overseers can demand security measures, remedial actions, and sanctions for non-compliant ICT providers with the same authority as responsible authorities. According to DORA, Lead Overseers have the power to sanction ICT providers up to 1% of their average daily worldwide turnover from the previous fiscal year. Providers may face daily fines for up to six months until they comply.
How can Kyte Global help you?
Kyte Global’s Compliance as a Service package can be tailored to your company’s needs. Our specialists can assist you in understanding the new responsibilities and supporting your ICT transition because of our extensive experience in interpreting and implementing new rules. Being familiar with the obligations is essential for a successful transition. We can assist in the following:
Gap Analysis: determines your current compliance level by conducting a gap analysis and DORA readiness assessment.
Remediation: Following the gap analysis and an explanation of all the weaknesses that have to be addressed, we can provide remediation assistance. This includes drawing up necessary policies and procedures, sourcing and implementation of applicable tools and hardening techniques.
Incident response: Our experts have the abilities and know-how to deal with security events in an efficient manner, which isn’t always achievable with internal resources. In order to provide our clients with the best possible service, we have formed strategic partnerships with best technology vendors of cyber security technologies and business specialists. These alliances allow us to take advantage of cutting edge tools, industry insights, and best practices. At Kyte Global, we are aware that every company has different needs. As a result, we have created adaptable service packages that may be tailored to fulfill particular financial and regulatory requirements.
Vulnerability scanning: We specialise in providing vulnerability scanning services, including ASV (Approved Scanning Vendor) assessments. The team conducts thorough scans of your systems and networks, identifying any potential weaknesses or vulnerabilities.
Threat intelligence: Through our partners we provide threat intelligence services that offer tailored solutions, delivering actionable insights to stay ahead of cyber threats. With real-time data and expert analysis, we take informed decisions to protect your digital assets effectively.
Kyte Global is ready to assist you as you set out on your journey to achieve DORA compliance. With our 17 years of expertise, we take pride in our commitment to raising standard. Our team will support you throughout the entire process of achieving the DORA goals. Attaining DORA compliance guarantees a strengthened digital infrastructure with improved operational resilience.
Get in touch with us on firstname.lastname@example.org if you would want to discuss further the DORA compliance service. We are happy to assist you.