DORA Overview
The Digital Operational Resilience Act (DORA) is a European Union (EU) regulation that establishes uniform rules for the security and resilience of network and information systems used by financial entities. It applies to a wide range of EU-regulated organizations, including banks, insurance companies, and investment firms, as well as critical ICT third-party service providers supporting these institutions.
DORA ensures that financial entities can withstand, respond to, and recover from disruptions or threats related to information and communication technologies (ICT).
Purpose of DORA
DORA is a legal framework that introduces mandatory requirements to strengthen the operational resilience of financial institutions across the EU. It focuses on ICT risk management, ensuring that organizations have robust governance, monitoring, and reporting mechanisms in place.
While it encompasses cybersecurity and operational continuity, DORA’s core objective is to ensure that financial entities maintain compliance with EU laws by effectively managing ICT risks and upholding standards of resilience.
The regulation includes detailed provisions covering:
Governance and oversight of ICT risk.
Reporting obligations for incidents and testing.
Contractual and third-party management requirements.
Applicability
DORA applies to a broad range of financial and ICT-related entities, including:
Credit institutions, payment service providers, electronic money institutions, and pension funds.
Providers of account information, crypto assets, data reporting, crowdfunding, and ICT services.
Investment firms, alternative investment fund managers, management companies, credit rating agencies, and benchmark administrators.
Trading venues, central securities depositories, central counterparties, trade repositories, and securitization repositories.
Insurance and reinsurance companies, and insurance intermediaries.
Scope
DORA applies to nearly all authorized financial institutions within the EU, referred to collectively as Financial Entities. Its requirements are applied proportionately based on the size and complexity of the organization.
Under DORA, micro-enterprises are defined as entities with:
Fewer than 10 employees, and
An annual turnover or balance sheet total of up to €2 million.
Even small organizations that meet these criteria must comply with DORA.
In addition to financial institutions, critical ICT third-party service providers that support these entities are also subject to DORA’s requirements.
DORA in DSALTA
DSALTA provides a foundational starting point for achieving DORA compliance through mapped controls, evidence tracking, and readiness monitoring. However, DORA is a regulatory law, and each organization’s compliance obligations may differ.
It is strongly recommended that all DSALTA customers consult their legal and compliance teams when implementing DORA controls, policies, and assessments.
This ensures that all actions are aligned with organizational needs and the expectations of relevant EU regulatory authorities.