Last month, the expert consultants from the firm Emérique & Partners shared the following survey :
Do you regularly monitor developments in DORA? (Digital Operational Resilience Regulation)
33% of participants answered: Yes, but it’s complicated
67% of participants answered: No, but I would like to
As financial professionals, knowing and mastering regulatory compliance is crucial to ensuring market stability and security. One of the emerging regulations that is attracting increasing attention is the Digital Operational Resilience Regulations (DORA).
This regulation aims to strengthen the operational resilience of financial institutions in the face of cyber threats and digital disruption.
Understanding DORA
DORA, or the Digital Operational Resilience Regulation, is a regulatory initiative designed to strengthen the ability of financial institutions to withstand and recover from cyberattacks and digital disruptions. Its primary objective is to protect the stability and security of the financial system by ensuring that financial institutions adopt robust risk management practices and resilient infrastructure.
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Two dates to remember
On January 16, 2023, the DORA Regulation and associated directive entered into force, following their adoption by the Council of the European Union in November 2022
This new regulatory framework includes two legislative acts:
Regulation (EU) 2022/2554 of the European Parliament and of the Council of 14 December 2022 on digital operational resilience (known as the DORA regulation)
Directive (EU) 2022/2556 of the European Parliament and of the Council of December 14, 2022. Its objective is to modify existing directives such as the CRD IV, PSD2, BRRD, Solvency 2, IORP2, MiFID 2, AIFM, etc. directives. in order to bring them into line with the new provisions of the DORA regulation.
The main pillars of DORA
To comply with DORA, financial institutions must focus on several key aspects:
Risk Assessment and Governance: Institutions should conduct regular risk assessments of their digital infrastructure and put in place strong governance to oversee the management of these risks.
Data and Privacy Protection: DORA requires financial institutions to implement robust data and privacy protection measures to ensure the security of sensitive customer information.
Business Continuity Management: Institutions must develop robust business continuity plans to ensure rapid recovery in the event of a major incident affecting their digital operations.
Testing and Simulations: DORA encourages financial institutions to regularly conduct tests and simulations to assess their ability to respond to cyberattacks and digital disruptions.
The importance of Regular Monitoring of DORA's progress
Regularly monitoring DORA developments is essential for several reasons:
Maintain Compliance: Compliance requirements can evolve over time as new threats emerge and technologies change. By closely following DORA updates, financial institutions can ensure they remain compliant with the latest regulatory requirements.
Anticipate Changes: By understanding developments in DORA, financial institutions can anticipate upcoming changes in the regulatory landscape and prepare accordingly. This allows them to take proactive steps to strengthen their security and compliance posture.
Improve Operational Resilience: By integrating best practices and the latest DORA requirements into their operations, financial institutions can strengthen their operational resilience and reduce their exposure to digital risks.
3 strategies fot Tracking DORA's Evolution
To effectively monitor DORA developments, financial institutions can adopt the following strategies:
- Regular Monitoring of Regulatory Communications: Institutions should closely monitor communications from regulatory agencies to be informed of updates and changes to DORA.
- Participation in Working Groups and Industry Forums: Participating in working groups and industry forums helps financial institutions stay informed of best practices and common compliance challenges.
- Continuing Staff Training: It is essential to invest in ongoing staff training to ensure they understand the latest compliance requirements and are able to implement them effectively.
Conclusion
DORA represents a complex set of regulations designed to strengthen the operational resilience of financial institutions in the face of cyber threats and digital disruption.
As finance and compliance professionals, regularly monitoring DORA developments is essential to ensure compliance and strengthen the security and stability of the financial system as a whole.
Take a proactive approach to understanding and implementing DORA requirements.
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Auteur : Emerique Opou
Founder and CEO of Emérique & Partners
London, United Kingdom
Named to the Staffing Industry Analysts' Global Power 150 Women in Staffing list, Emérique has more than 15 years of expertise in recruiting niche profiles in banking and insurance.
His rich pan-European experience has enabled him to build a solid network of professionals in the banking and insurance sectors, notably with actuaries, quantitative finance experts, risk managers, and compliance experts.
Emérique & Partners recruits exclusively at executive and senior management levels.
Every month, Emerique deciphers the major trends in the French and European banking and insurance market.
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