ControlMap now supports the Digital Operational Resilience Act, enabling MSPs to implement cybersecurity programs for financial institutions operating within the European Union.
What is DORA?
The Digital Operational Resilience Act (DORA) is an EU regulation aimed at strengthening the cybersecurity and operational resilience of the financial sector within the European Union. It is critical for financial institutions as it mandates comprehensive management of IT risks, ensuring consistent and robust security practices across the sector to prevent and mitigate cyber incidents.
Before DORA, financial institutions mainly managed risks with the allocation of capital, but they didn't focus on all aspects of operational strength. After DORA, these institutions need to follow specific rules for protecting against, detection, containment, and recovery capabilities for IT-related incidents. DORA sets specific guidelines for IT risk management, incident reporting, information sharing, digital operational resilience testing, and third-party IT risk management.
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The benefits of DORA
DORA is a requirement for financial institutions to be in compliance with EU regulations. Compliance is required to protect financial institutions from regulatory penalties due to non-compliance. Organizations deemed non-compliant may face significant penalties that are imposed on a daily basis to encourage compliance. They may also be subject to a periodic penalty payment of 1% of their average daily global turnover in the preceding year. Outside of financial penalties, non-compliant organizations may be issued termination notices, cease-and-desist orders, and/or public notices.
However, the implementation of DORA also brings benefits that strengthen operations including:
- Improved IT Risk Management: DORA establishes comprehensive rules for managing IT risks. Financial institutions are required to identify, assess, and address vulnerabilities more effectively, minimizing the chances of data breaches and system outages.
- Enhanced Incident Reporting and Response: DORA mandates standardized processes for reporting IT-related incidents and responding to them. This structured approach helps institutions contain, recover from, and prevent similar incidents, improving their overall cybersecurity posture.
- Stronger Third-Party Risk Monitoring: Financial institutions are required to closely monitor all third-party IT providers to reduce the risks associated with outsourcing. By regularly evaluating the resilience of their vendors, institutions can ensure their supply chains remain secure and aligned with regulatory standards.
Ready to get started?
Financial Institutions in the EU are required to be compliant with DORA. ControlMap Partners can now import the DORA framework to their clients’ tenants, cross-map against current frameworks, and get started addressing any gaps to avoid regulatory penalties. Sign to ControlMap to get started on DORA now.