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DORA Regulation for UK Organisations
A Guide to the Digital Organisational Resilience Act for UK Organisations
What is the Digital Operational Resilience Act (DORA)?
The Digital Operational Resilience Act (DORA) is an EU regulation aimed at enhancing the operational resilience of financial entities across the European Union. As a regulation, DORA focuses on ensuring Financial Entities can withstand, respond to, and recover from all forms of information and communication technology (ICT)-related disruption. This includes cyberattacks and system failures.
DORA was introduced in response to the increasing digitalisation of the financial sector and the corresponding rise in ICT risks and cyber threats. Prior to DORA, there was no unified framework governing operational resilience across the EU. This led to fragmented approaches and potential vulnerabilities within the financial system. DORA aims to harmonise and strengthen operational resilience practices, ensuring that all financial entities meet consistent and high standards.
What Organisations are impacted by DORA?
Enforced by EU regulatory bodies, DORA requires all financial institutions, from small banks to large investment firms, to adhere to stringent standards in ICT risk management, incident reporting, and operational resilience testing.
Regardless of whether an entity is a regional bank or a global financial powerhouse, if its operations rely on ICT systems, compliance with DORA is essential to maintain service continuity and protect against digital threats.
What does DORA Regulation mean for UK Organisations?
For UK businesses, the Digital Operational Resilience Act (DORA) is a crucial regulatory framework. While directly applicable in the EU, it has significant implications due to global financial market interconnectivity.
UK financial institutions with EU operations or clients must adhere to DORA’s rigorous standards to maintain market access. This requires UK firms to implement robust ICT risk management strategies and strengthen incident reporting mechanisms. They may also need to undergo resilience testing per DORA’s guidelines.
Additionally, UK ICT service providers catering to EU financial entities could fall under DORA’s jurisdiction if deemed critical third-party providers. DORA compels UK businesses to enhance operational resilience, aligning with global best practices to ensure competitiveness and regulatory compliance.
Unlock Practical Steps to Meet DORA Requirements -Download the Whitepaper.
Understanding the intricacies of the Digital Operational Resilience Act (DORA) is essential for ensuring your organisation’s resilience against ICT-related disruptions. To help you navigate these complex requirements and prepare for the 2025 deadline, we’ve developed a comprehensive whitepaper with our partner, Quod Orbis, that outlines actionable steps for compliance, including ICT risk management, third-party oversight, and incident reporting.
Understanding DORA Requirements.
DORA establishes a comprehensive regulatory framework that financial institutions and ICT service providers must adhere. Below are the key requirements your business needs to fulfil:
1. ICT Risk Management.
DORA requires all financial institutions to implement a robust ICT risk management framework. This involves identifying, assessing, and mitigating ICT risks, with these practices fully integrated into your organisation’s overall governance and management processes. Regular reviews and updates of these frameworks are essential to keep pace with the evolving landscape of cyber threats and to ensure ongoing compliance with DORA’s standards.
2. Third-Party Risk Management.
Given the interconnected nature of financial services, DORA mandates that firms manage risks associated with third-party ICT service providers. This includes conducting thorough due diligence, establishing clear contractual obligations, and continuously monitoring third-party performance to ensure adherence to DORA’s requirements. If your business relies on critical third-party providers, additional oversight and reporting requirements may also apply.
3. Operational Resilience Testing.
DORA requires organisations to regularly test their digital resilience, emphasising both annual basic testing and more advanced methods like threat-led penetration testing (TLPT). Conducting TLPT at least every three years is crucial. These proactive tests help identify vulnerabilities, ensuring that your business can effectively withstand and recover from operational disruptions. By integrating these practices, you can better protect your organisation against potential threats and maintain continuity.
4. Incident Reporting and Management.
DORA mandates that financial institutions establish robust incident reporting mechanisms. When significant ICT-related incidents occur, businesses must promptly report them to the relevant authorities, ensuring a swift response and minimising damage. To achieve this, your business should also implement well-defined incident management processes that coordinate an effective response to any disruptions. This proactive approach not only meets regulatory requirements but also enhances your organisation’s overall resilience.
5. Information Sharing.
DORA recognises the importance of information sharing about cyber threats and vulnerabilities within the financial sector, encouraging a collaborative approach that strengthens the overall resilience of the sector. While information sharing is not mandatory under DORA, it is strongly recommended as part of a comprehensive resilience strategy. Proactively sharing information enhances your organisation’s security posture and contributes to the collective defence of the financial ecosystem.
6. Oversight of Critical ICT Third-Party Providers.
If your business utilises critical ICT services from third-party providers, DORA mandates that these providers be subject to stringent oversight. This includes ensuring that these providers implement governance structures that align with DORA’s requirements and establishing contingency plans to manage potential service disruptions. This oversight is critical for maintaining the resilience of services that are essential to the financial system.
Build Your Business’s Resilience with DORA Expertise.
The Digital Operational Resilience Act (DORA) sets the bar high for financial institutions, and Secon is here to help you meet and exceed those standards.
Partner with Secon to strengthen your digital infrastructure and stay ahead of regulatory requirements. Our tailored approach focuses on fortifying your business against cyber threats and operational risks, ensuring not just compliance, but long-term resilience. Let us help you build a robust foundation through tools and processes that keeps your business secure and competitive.
How Secon Can Support Your Journey to DORA Compliance?
Navigating the requirements of the Digital Operational Resilience Act (DORA) can be a daunting task, but Secon is here to make the journey smoother and more manageable. With our extensive experience in Governance, Risk, and Compliance (GRC) and deep cyber security expertise, we are uniquely equipped to guide UK businesses through every step of achieving DORA compliance. Here’s how we can help:
- Comprehensive DORA Readiness Assessment: We’ll assess your current operational resilience against DORA’s requirements, identifying any gaps and providing insights on tooling to ensure your business meets the regulation’s stringent standards.
- Continuous Resilience Support: Beyond just achieving compliance, maintaining it is crucial. Secon offers ongoing support and monitoring to ensure your business remains resilient
- Specialist Advisory Services: Our team provides expert advice and practical support on everything from enhancing your ICT risk management to optimising third-party risk oversight.
Let Secon be your trusted partner in building a robust operational resilience framework that aligns with DORA.
Contact us today to learn more about how we can assist you on this critical journey.
Get in touch.
Safeguard your business from the complexities and risks of DORA non-compliance. Connect with Secon today to discover how our expertise can help you establish a robust, compliant infrastructure. We’ll work alongside you to strengthen your operational resilience, ensuring that your business is well-prepared to meet DORA’s demands and thrive in today’s digital landscape.
