If your company provides IT, cloud, or cybersecurity services to financial institutions in the EU, DORA (Digital Operational Resilience Act) is about to change the way you operate. With enforcement beginning in January 2025, businesses must act now to avoid financial penalties, operational risks, and reputational damage.
What is DORA?
The Digital Operational Resilience Act (DORA) is the EU’s response to increasing cyber threats in the financial sector. It introduces a set of rules to ensure that financial institutions—and the third-party service providers they rely on—can withstand and respond to cyber incidents.
While DORA primarily targets banks, insurance companies, and investment firms, it also directly impacts IT and cybersecurity service providers that work with them. Even UK-based companies serving EU financial entities must comply.
Key Areas of Compliance
° Risk Management – Firms must implement robust cybersecurity frameworks, including real-time monitoring, vulnerability assessments, and stress testing.
° Incident Reporting – Financial institutions and their critical service providers must report cyber incidents within tight deadlines to regulators.
° Third-Party Risk Oversight – Any outsourced IT, cloud, or security service providers must meet DORA’s strict security and operational resilience standards.
° Resilience Testing – Businesses must regularly test their defences through penetration testing, red teaming, and business continuity drills.
° Information Sharing – DORA encourages cross-industry collaboration to improve threat intelligence sharing and mitigate systemic risks.
Why Should You Act Now?
DORA enforcement starts in January 2025, but preparing for compliance isn’t an overnight task. Businesses that fail to align with its requirements may face:
° Fines and regulatory penalties
° Operational disruptions due to cyber incidents
° Loss of contracts with financial clients
° Reputational damage from non-compliance
How to Prepare
° Assess your cybersecurity policies – Do they align with DORA’s risk management framework?
° Review contracts with financial clients – Ensure compliance with third-party security requirements.
° Strengthen incident response plans – Be ready to report and respond to cyber incidents rapidly.
° Engage with cybersecurity experts – Leverage external assessments and testing to validate resilience.
Final Thoughts
DORA isn’t just another regulation—it’s a game-changer for financial cybersecurity. If your business serves the financial sector, it’s time to act now to avoid compliance risks and strengthen your digital defences.
Know someone who needs to prepare for DORA? Share this with your network—it could save them from costly mistakes!