‍Which IT Companies Need to Comply with DORA, and How Can They Ensure Compliance with Regulativ.ai's Platform?

The Digital Operational Resilience Act (DORA) is a cornerstone of the European Union's regulatory framework aimed at enhancing the cybersecurity and resilience of financial institutions. However, DORA's reach extends beyond financial organisations, placing significant emphasis on the digital supply chain, particularly the IT companies providing services to these entities. Ensuring the operational resilience of financial services necessitates stringent oversight of their ICT (Information and Communication Technology) providers, making DORA compliance crucial for IT companies serving financial organisations.

For Chief Compliance Officers and other C-Level executives in IT service firms, understanding DORA's scope and compliance requirements is not just a regulatory necessity but a strategic imperative. Regulativ.ai’s DORA Automation Platform is designed to streamline and automate these complex compliance processes, allowing your organisation to maintain compliance seamlessly while mitigating risks and optimising resources.

The Scope of DORA: Who Needs to Comply?

DORA applies to ICT service providers that offer digital services to financial institutions within the European Union. Specifically, if your organisation provides ongoing ICT services—whether as part of a financial group or as an independent entity—you fall under the scope of DORA. The regulation mandates compliance for:

• ICT service providers delivering critical or important functions to financial entities.
• Companies providing digital services such as cloud computing, data analytics, and even hardware services that include technical support via software or firmware updates.

Notably, if your organisation is classified as a critical ICT third-party service provider, DORA imposes even more stringent requirements, with direct oversight from European regulatory bodies. This categorisation hinges on factors like your systemic impact on financial stability, substitutability, and the extent to which financial institutions rely on your services.

Key Compliance Requirements for ICT Service Providers

To align with DORA, ICT providers must adhere to a range of security and contractual requirements. Some of the core areas include:

1. Security Standards: DORA mandates the use of appropriate information security standards, although it leaves room for interpretation. It is likely that compliance will require adherence to widely recognised frameworks such as ISO 27001 and the European Cybersecurity Certification Scheme.
2. Contractual Obligations: Contracts with financial entities must include provisions addressing data security, access to personal and non-personal data, assistance with ICT-related incidents, and participation in resilience training.
3. Resilience Testing and Incident Management: IT providers must engage in regular resilience testing, including threat-led penetration testing, and have robust mechanisms for incident management, particularly for cyber-attacks or disruptions.
4. Governance and Risk Management: Effective governance structures must be in place, alongside comprehensive ICT risk management policies, continuity plans, and recovery frameworks.

How Does Regulativ.ai Simplify DORA Compliance?

DORA compliance can be resource-intensive, with its extensive documentation requirements, mandatory audits, and direct oversight for critical ICT providers. Regulativ.ai’s DORA Automation Platform offers a comprehensive solution to streamline these obligations. Here’s how it works:

1. Automated Risk Management and Reporting: The platform automates the identification, monitoring, and reporting of ICT-related risks, ensuring that your organisation remains compliant with DORA’s stringent oversight requirements. It generates the necessary documentation for audits and inspections, reducing the burden on your internal teams.
2. Real-Time Compliance Tracking: Regulativ.ai provides real-time updates on your compliance status across various DORA requirements, from security standards to contractual obligations. This proactive approach allows you to address gaps before they become regulatory concerns.
3. Integrated Incident Response Framework: In the event of a cyber-attack or system disruption, the platform integrates incident response protocols to ensure timely action and swift communication with financial clients, as mandated by DORA.
4. Cost-Effective Oversight Management: For critical ICT providers subject to oversight from a Lead Overseer, the platform facilitates smoother interactions by maintaining up-to-date compliance records, audit trails, and testing results. This can help mitigate the financial impact of non-compliance, including fines and penalties, which can reach up to 1% of your worldwide annual turnover.

The Role of Critical ICT Service Providers

If your organisation is classified as a critical ICT third-party service provider, DORA imposes additional oversight obligations. Your operations will be supervised by a Lead Overseer appointed by the European Supervisory Authorities (ESAs), including the European Banking Authority (EBA), European Securities and Markets Authority (ESMA), and European Insurance and Occupational Pensions Authority (EIOPA). This supervision includes:

• Annual Audits and Onsite Inspections: Critical ICT providers must grant the Lead Overseer access to all operational premises for regular inspections, both onsite and offsite.
• Business Continuity and Data Portability: You are required to have robust continuity plans in place and ensure the seamless migration of services in case of disruption, including contractual clauses that guarantee service delivery even during the cancellation period.
• Penalties for Non-Compliance: Non-compliance with DORA can result in fines up to 1% of global turnover, along with reputational damage from public notices issued by the ESAs.

Regulativ.ai's platform is uniquely positioned to help critical ICT providers stay ahead of these challenges. By automating compliance, risk management, and reporting, our solution not only mitigates operational risks but also ensures that your firm remains compliant with evolving regulatory demands—efficiently and cost-effectively.

Preparing for the Future: Ensuring Continuous Compliance

As DORA evolves and expands its regulatory scope, IT service providers must be prepared for ongoing adjustments. The key to success lies in embedding compliance into your daily operations, making it a continuous, automated process rather than a reactive one. By leveraging the advanced capabilities of Regulativ.ai’s platform, your organisation can future-proof its operations, ensuring that you remain compliant with DORA while focusing on delivering value to your financial clients.

In an era where digital resilience is a business-critical function, aligning with DORA through automation is not just about regulatory adherence—it's about maintaining trust, safeguarding client relationships, and ensuring long-term stability in an increasingly complex regulatory landscape. Visit www.regulativ.ai/dora to explore how our platform can simplify your DORA compliance journey.

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