What is the Digital Operational Resilience Act (DORA)?
DORA is an EU-wide regulation designed to strengthen operational resilience across the financial sector. It establishes uniform rules for:
- ICT risk management (cybersecurity frameworks, access controls)
- Incident reporting (strict timelines for major disruptions)
- Third-party oversight (stricter rules for cloud and fintech providers)
- Resilience testing (mandatory penetration tests and audits)
Unlike broader regulations like GDPR or NIS2, DORA specifically targets banks, insurers, investment firms, and crypto-asset providers.
Key DORA Compliance Requirements
1. ICT Risk Management
- Firms must implement robust cybersecurity policies, including:
- Regular risk assessments
- Encryption and access controls
- Business continuity planning
2. Incident Reporting
- Major ICT incidents must be reported to regulators within 72 hours.
- Detailed root-cause analyses required for severe disruptions.
3. Third-Party Risk Management
- Financial firms must:
- Assess critical vendors’ resilience (e.g., cloud providers)
- Maintain exit strategies to avoid operational lock-in
4. Digital Resilience Testing
- Annual penetration testing and vulnerability scans mandated.
- Tests must simulate advanced cyber threats.
5. Information Sharing
- Encourages anonymised threat intelligence sharing between firms to improve sector-wide defences.
How to Prepare for DORA Compliance
- Conduct a gap analysis
- Compare current policies against DORA’s requirements.
- Strengthen incident response plans
- Ensure 72-hour reporting capabilities.
- Audit third-party contracts
- Verify cloud providers meet DORA standards.
- Schedule resilience testing
- Plan penetration tests and scenario-based drills.
- Train staff and stakeholders
- Educate teams on new reporting protocols.
How SnapGRC Simplifies DORA Compliance
Preparing for DORA requires cross-functional coordination, detailed documentation, and continuous monitoring. SnapGRC’s platform helps financial firms achieve and maintain compliance efficiently:
1. Centralised Risk Management
Automated risk assessments aligned with DORA’s ICT risk management requirements.
Real-time dashboards to track risks across internal systems and third-party vendors.
2. Streamlined Incident Reporting
Pre-configured workflows to meet DORA’s 72-hour incident reporting mandate.
Automated alerts and audit trails to ensure transparency with regulators.
3. Third-Party Risk Monitoring
Continuous vendor assessments to enforce DORA’s outsourcing rules.
Centralised repository for contracts, SLAs, and compliance evidence.
4. Compliance Evidence & Audits
Pre-built DORA frameworks to map controls and generate audit-ready reports.
Integration with penetration testing tools to validate resilience.
5. Policy Management & Training
Automated policy distribution and staff attestation tracking.
Customisable training modules for DORA-specific protocols.
Frequently Asked Questions
Q: When does DORA take effect?
A: Enforcement begins on 17 January 2025.
Q: Does DORA apply to UK firms?
A: Only if they operate in the EU. However, the UK may introduce similar rules.
Q: What are the penalties for non-compliance?
A: Fines vary by EU member state but may include reputational sanctions and operational restrictions.
Conclusion: Preparing for DORA Compliance in 2025
The Digital Operational Resilience Act (DORA) represents a transformative shift in how financial firms manage cybersecurity, incident response, and third-party risks. With enforcement beginning in January 2025, organisations must act now to:
- Implement robust ICT risk management frameworks.
- Establish efficient incident reporting processes.
- Strengthen oversight of critical third-party vendors.
For many firms, achieving compliance manually will prove costly and complex. SnapGRC’s GRC platform simplifies this transition by centralising risk assessments, streamlining audits, and ensuring continuous monitoring—helping you meet DORA’s requirements with clarity and confidence.