DORA Is Here: What CISOs and Executives Need to Know to Stay Ahead
The Digital Operational Resilience Act Explained for Leaders Who Want to Stay Ahead
As a CISO or executive with touchpoints to the financial industry, you already know that digital resilience isn’t just a technical buzzword - it’s critical for survival. The Digital Operational Resilience Act (DORA), effective January 17, 2025, is set to change the game for financial entities across the EU. This is more than just another regulation; it’s a wake-up call to ensure your business is prepared to thrive in an increasingly volatile digital world.
Let’s break it down into what you actually need to know, what it means for your role, and how to turn compliance into a competitive advantage.
Why You Need to Care About DORA
Imagine your organization suffers a massive IT disruption: Critical systems fail, data gets locked, and customers are left in the dark. It’s not just a technical issue - it’s a business nightmare. DORA is here to make sure that doesn’t happen, by holding your organization to a higher standard of digital resilience.
But compliance isn’t just about avoiding penalties (which can reach up to 2% of global turnover or €5 million for service providers). It’s about protecting your reputation, safeguarding customer trust, and proving your organization can handle anything the digital world throws at it.
The 5 Key Requirements - And How They Impact You
1. ICT Risk Management: Taking Charge of Digital Resilience
Every financial entity must establish a robust ICT risk management framework. This means regularly assessing risks, implementing mitigation strategies, and having incident response plans ready to go.
For CISOs: This is your bread and butter. Ensure you have a clear inventory of all digital assets and assess vulnerabilities regularly. Leverage tools like risk dashboards and penetration testing to identify gaps.
For Executives: Push for the right investments. Cutting corners here could cost more in the long run. Ask your teams: “Are we battle-ready for a major disruption?”
2. Incident Reporting: No More Hiding in the Shadows
Significant ICT-related incidents must be detected, reported, and managed quickly. Reporting to regulators is mandatory, and affected clients must be informed.
For CISOs: Build a robust incident monitoring system. Streamline processes to ensure you’re reporting within the required timeframe and capturing the right data.
For Executives: Transparency is key. Take a proactive stance on incident communication - it’s better to be upfront than risk reputational damage later.
3. Digital Operational Resilience Testing: Prove You’re Prepared
Organizations must regularly test their digital resilience through basic and advanced scenarios, such as simulated cyberattacks or system failures.
For CISOs: Expand testing beyond compliance checklists. Invest in red team exercises to uncover blind spots.
For Executives: Testing isn’t optional. Make sure your teams have the resources to simulate worst-case scenarios and refine recovery strategies.
4. Third-Party Risk Management: No Weak Links Allowed
What DORA Requires:
Every financial entity must closely monitor third-party ICT providers. Contracts need to include clauses ensuring service providers align with DORA’s standards.
For CISOs: Audit third-party relationships regularly. What’s their track record? Do they have contingency plans? Ensure vendors don’t become liabilities.
For Executives: Hold your procurement and legal teams accountable for setting clear expectations with providers. Don’t wait until a crisis to realize your service agreements are lacking.
5. Information Sharing: Strength in Numbers
Sharing intelligence on cyber threats among financial entities is encouraged to foster collective resilience.
For CISOs: Join industry forums or threat intelligence groups. Sharing insights can give you a critical edge in anticipating attacks.
For Executives: Support collaboration across the industry. It’s a smart investment in a safer financial ecosystem.
Turning Compliance Into Competitive Advantage
Think of DORA as more than just a checklist - it’s a chance to prove to your stakeholders that your organization is resilient, trustworthy, and future-proof. Compliance is the floor, not the ceiling. By going beyond the minimum requirements, you position your business as a leader in operational resilience.
Pro Tip: Use DORA as a rallying point to break silos. Cyber resilience isn’t just IT’s job; it’s everyone’s responsibility. The more aligned your teams are, the stronger your organization will be.
The Clock Is Ticking: Start Preparing Now
With less than a month to go, you need to act fast. Start by conducting a DORA readiness assessment:
• Is your ICT risk management framework comprehensive?
• Are you prepared to meet incident reporting timelines?
• How strong is your third-party oversight?
Don’t just meet DORA’s requirements - exceed them. In a world where trust is currency, resilience is your competitive edge.