In the rapidly evolving digital world, resilience is key to maintaining business continuity, particularly within financial services.

The Digital Operational Resilience Act (DORA) is a new regulation from the European Union, aimed at improving the Information and Communications Technology (ICT) security of financial institutions. Set to take effect on 17th January 2025, DORA is about much more than preventing cyber failures. It ensures operational continuity, supports business innovation, and aligns ICT resilience with business strategy.

What is DORA?

DORA seeks to create a unified approach for managing ICT risks across the financial sector in the EU. Its objectives include:

- Preventing and reducing cyber threats

- Standardising operational resilience practices across member states

- Ensuring the uninterrupted provision of essential financial services

- Protecting consumers from service disruptions

DORA requires firms to develop plans to withstand, respond to, and recover from disruptions, whether due to cyber-attacks or other operational issues. While this sounds demanding, firms that embrace DORA have reported reductions in operational costs and enhanced efficiency.

The ESAs’ Message

On 4th December 2024, the European Supervisory Authorities (ESAs) made it clear: the deadline for compliance is 17th January 2025, and there will be no grace period. Financial institutions must prepare now to avoid costly delays and non-compliance.

Common Misconceptions About DORA

There are several misconceptions surrounding DORA, which must be corrected:

"It’s only about cybersecurity": DORA extends beyond cybersecurity. It covers business continuity, disaster recovery, incident management, and third-party risk management.

"It only applies to internal ICT systems": DORA also applies to third-party ICT providers, such as service vendors and cloud providers. Due diligence and risk management of these external relationships are essential.

"We’re already compliant with other regulations": While regulations like ISO 27001 or GDPR are important, DORA introduces specific requirements that go beyond existing standards. Organisations need to conduct a gap analysis to ensure full compliance.

"It’s just a tick-box exercise": DORA is not a simple checklist. It requires a cultural shift towards ongoing resilience, involving every part of the organisation.

"We have until April for the Register of Information (ROI) submission": The ROI is a key component of DORA. Yet, as of October 2024, many firms had not started preparing for it. Delaying compliance is a risky strategy.

The Register of Information (ROI): A Blueprint for Resilience

A central aspect of DORA is the Register of Information (ROI). This document provides a comprehensive map of an organisation’s ICT landscape. It helps:

- Align policies across business functions

- Prevent redundancies and confusion

- Implement Key Risk Indicators (KRIs) to detect potential issues early

- Enable integrated monitoring and governance

The ROI is not just a regulatory requirement, it’s an opportunity to streamline operations and improve resilience, delivering tangible business benefits such as a 30% reduction in operational inefficiencies.

DORA Roadmap: A Strategic Approach

To implement DORA effectively, a clear and structured roadmap is necessary:

Scope Definition: Identifying critical business functions and the digital infrastructure supporting them.

Review of Existing Documentation: Assessing current policies and frameworks for gaps.

Gap Analysis: Understanding where current operations differ from DORA requirements.

Mapping ICT Topology: Creating a visual map of all digital systems and interdependencies.

Business Impact Analysis (BIA): Identifying risks and prioritising actions based on their impact on the business.

Implementation: Putting plans into action to align with DORA’s requirements.

This roadmap ensures that DORA is integrated into the organisation in a comprehensive, practical way.

Strategic Benefits of DORA Implementation

DORA’s benefits extend beyond compliance. By implementing it properly, organisations can:

Reduce Operational Costs: Firms often see a 20-30% reduction in operational costs by eliminating inefficiencies and automating manual processes.

Improve Customer Satisfaction: Proactive risk management leads to fewer service disruptions, improving customer satisfaction by 15-25%.

Accelerate Time-to-Market: A clearer understanding of digital systems allows organisations to launch new products and services more quickly, often reducing time-to-market by 30-40%.

Reduce Security Incidents: DORA’s structured approach can reduce security incidents by 40-50%, providing greater confidence in the organisation’s resilience.

Conclusion: DORA as a Catalyst for Transformation

DORA is not simply a regulatory hurdle; it is a driver of digital transformation. Financial institutions that embrace it can foster resilience, reduce costs, and enhance their competitiveness in a rapidly changing market. By seeing DORA as an opportunity, organisations can create long-term value, positioning themselves for sustainable growth in a digital-first economy. As the 17th January 2025 deadline approaches, the message is clear: digital resilience is not just about mitigating risk, but enabling business success.

Stay Updated on Our Future Webinars

We greatly appreciate the interest and engagement in our DORA webinar and are excited to announce that we’ll be running a second session soon, covering new topics and deeper insights into digital resilience.

Be the first to hear about the next session, its topic, and dates by registering your interest here.

Stay ahead, stay resilient, and let’s navigate the evolving regulatory landscape together!