Ruminating on DORA regulation

The Digital Operational Resilience Act (DORA), a new EU regulation, aims to strengthen the cybersecurity and operational resilience of financial institutions and their critical ICT providers. IT companies, particularly those serving the financial sector, must be ready to comply with DORA's comprehensive requirements by its enforcement date of January 17, 2025.

DORA is basically a set of rules for financial companies in the EU to make sure they're safe from cyberattacks and other tech problems. It's like a safety net to keep their services running smoothly, no matter what happens. This applies to banks, insurance companies, and even the tech companies that help them out.

DORA's Core Components are as follows: 

• Cyber Risk Management Framework: Organizations must establish a comprehensive plan for identifying, assessing, and mitigating risks related to their information and communication technology systems.
• Incident Response and Reporting Systems: Entities are required to implement procedures for monitoring, detecting, and reporting ICT-related incidents.
• Digital Operational Resilience Testing: Regular testing of ICT systems is mandatory to evaluate their resilience against cyber threats and operational disruptions.
• Third-Party Risk Management Controls: Stricter measures are necessary to assess and manage the risks associated with outsourcing ICT services to third-party providers.
• Information Sharing Mechanisms: Entities must participate in collaborative efforts to share intelligence and best practices regarding cyber threats.

To comply with DORA regulations, an enterprise is expected to do the following: 

1. Check Your Risk Management Plan: First, see if your organization already has a plan for managing ICT risks. This plan should include rules, procedures, and regular checks that fit your organization's specific risks.
2. Identify Gaps: Look at your current plan and compare it to what DORA requires. Find any areas where you might be lacking, like security testing or managing risks from third-party vendors. This will help you know what changes you need to make.
3. Review Your Incident Response: Make sure your processes for handling incidents are strong enough to meet DORA's standards. This means you should be able to watch for, manage, and report incidents effectively.
4. Improve Testing Procedures: Update your testing plan to include regular checks for vulnerabilities and penetration tests. DORA requires that critical organizations conduct threat-led penetration testing (TLPT) every three years.
5. Manage Third-Party Risks: Put in place strict measures for handling risks from third-party service providers. This includes keeping a detailed list of all contracts with these providers.
6. Share Information: Set up ways to share information about cyber threats with other organizations in the financial industry. Working together can help everyone become more resilient against cyber threats.