The Digital Operational Resilience Act (DORA): Strengthening the EU Financial Sector’s ICT Framework
Summary
DORA is a binding regulation that establishes a comprehensive information and communication technology (ICT) risk management framework for the EU financial sector. Before the introduction of DORA, the EU’s risk management regulations primarily focused on the capital adequacy of financial institutions. Once DORA’s standards are in place, the responsibility of enforcement will lie with the designated regulators in each EU member state, termed as “competent authorities.” These authorities will have the power to mandate specific security measures, remediate vulnerabilities, and even impose penalties on non-compliant entities. Furthermore, DORA encourages financial entities to share information about ICT-related incidents, ensuring that lessons are learned and best practices are disseminated. DORA represents the EU’s commitment to ensuring that its financial sector remains robust in the face of digital challenges.