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The Digital Operational Resilience Act (DORA) is a pivotal regulation for financial entities in the European Union, aiming to harmonize and fortify cybersecurity and operational resilience across the financial services sector. Published in December 2022 as Regulation (EU) 2022/2554, DORA will apply starting from January 17, 2025, enforcing stringent requirements on financial institutions and their IT providers to ensure robust digital operational resilience.

For Chief Compliance Officers and C-level executives, DORA is not just a compliance challenge—it’s a strategic opportunity to streamline operations, mitigate risks, and enhance trust. The regulation underscores the criticality of seamless digital operations in an era of increasingly sophisticated cyber threats.

Key Aspects of DORA for C-Level Decision Makers

1. Comprehensive Coverage Across the Financial Sector
   DORA’s scope is broad, applying to a wide range of financial entities including banks, insurance companies, investment firms, and even cryptocurrency service providers. It also directly impacts third-party ICT providers, marking a significant shift in regulatory oversight to external service providers that offer essential IT services to financial institutions.
   Who Needs to Comply?  21 categories of Financial Services entity are in scope, including:

• Credit institutions

• Payment institutions

• Investment firms

• Crypto-asset service providers

• Insurance and reinsurance undertakings

• ICT third-party providers

2. Focus on Operational Resilience
   DORA introduces uniform standards for cybersecurity, risk management, incident reporting, and resilience testing across EU member states, which simplifies compliance and operational requirements. For executives, this presents an opportunity to leverage unified frameworks across international operations, eliminating the need to navigate different regulatory requirements in each member state.

3. Third-Party Risk Management
   One of the regulation’s most significant impacts is its stringent oversight of third-party ICT service providers. Executives must ensure that their vendors are compliant, as financial institutions will be held accountable for the resilience and cybersecurity practices of their suppliers. Non-compliance could result in severe penalties, including fines of up to 1% of global turnover for critical third-party providers.
   Regulativ’s DORA Automation Platform offers a comprehensive solution by automating third-party risk assessments, vendor contract monitoring, and regulatory reporting to ensure that organizations meet DORA’s third-party risk requirements seamlessly.

4. Incident Reporting and Threat Intelligence Sharing
   DORA mandates structured incident reporting and encourages threat intelligence sharing within the financial ecosystem. For senior executives, this means ensuring that their organizations have the capability to classify, report, and respond to cyber incidents in real time. Regulativ’s platform streamlines this process by automating incident classification, enabling rapid compliance with DORA’s rigorous reporting timelines.

5. Government Oversight and Penalties
   Financial entities and ICT third-party providers are subject to oversight by national competent authorities and EU supervisory authorities like the European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA). Non-compliance with DORA’s requirements can lead to operational restrictions, financial penalties, and reputational damage, making it essential for C-level leaders to prioritize DORA compliance as a strategic objective.
   Regulativ’s platform enables continuous monitoring of compliance status, helping organizations avoid penalties through proactive governance.

Leveraging Automation for Seamless Compliance: Regulativ’s DORA Platform

Given the complexity and breadth of DORA’s requirements, automation is the most efficient path to compliance. Regulativ’s DORA Compliance Platform offers a holistic approach to managing DORA obligations, integrating advanced automation to reduce the burden on internal teams while ensuring real-time compliance.

• Risk Management: The platform automates risk identification, assessment, and treatment, aligning with DORA’s ICT risk management framework.

• Resilience Testing: Automated tools facilitate ongoing operational resilience testing such as penetration testing, ensuring compliance with Chapter IV of DORA.

• Incident Management: The platform enables organizations to automate the incident reporting process, including classifying and submitting detailed reports to the relevant authorities within mandated timelines.

• Third-Party Oversight: Automatically monitor and manage third-party ICT service providers, ensuring compliance with DORA’s stringent requirements for critical service providers.

By leveraging Regulativ’s DORA Compliance Platform, your organization can streamline compliance efforts, reduce costs, and gain peace of mind by ensuring end-to-end compliance with DORA’s operational resilience and cybersecurity mandates.

Preparing for DORA: Strategic Steps for Executives

For senior executives, achieving DORA compliance is a strategic priority that requires an integrated approach to risk management, operational resilience, and governance. Key steps include:

• Conduct a gap analysis to assess current compliance levels and identify areas that need to be strengthened.

• Secure buy-in from senior leadership and allocate sufficient resources to DORA compliance projects.

• Leverage automated platforms like Regulativ to reduce manual compliance efforts and enhance monitoring capabilities.

• Train staff on the operational resilience strategies required under DORA, ensuring that they are well-prepared for the January 2025 deadline.

The Strategic Advantage of DORA Compliance

DORA compliance will not only shield financial entities from cyber threats but also provide a competitive edge by enhancing digital trust with customers, investors, and regulators. By automating compliance processes and proactively managing risks, organizations can transform regulatory requirements into an opportunity for growth and innovation.

Visit Regulativ.ai to explore how our DORA Automation Platform can empower your organization to meet the challenges of digital operational resilience and cybersecurity in the evolving financial landscape.

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