DORA Regulation: What it is, who it affects, and the tools that facilitate compliance
The Digital Operational Resilience Act (DORA Regulation), effective from January 17, 2025, introduces a unified regulatory framework for managing technological risks in the European Union's financial sector.
Its goal is to strengthen the digital resilience of financial institutions against cyber threats by establishing common standards that eliminate regulatory disparities across EU member states.
What is the DORA regulation?
DORA is designed to address digital vulnerabilities in the financial sector and protect both institutions and their clients. It focuses on four key areas:
Technology risk governance and management
Incident response
Operational resilience testing
Third-party risk management
By implementing these standards, DORA aims to create a more secure financial ecosystem, aligned with the demands of an increasingly digital world.
Who must comply with DORA?
The regulation has a broad scope, covering both traditional and non-traditional financial entities:
ICT service providers: Companies offering essential services such as cloud storage, data centers, and data analytics.
Other essential services: Credit rating agencies and clearing and settlement service providers.
Additionally, DORA mandates that financial institutions actively manage third-party risks and prevent over-reliance on a single ICT service provider.
Key requirements of the DORA regulation
DORA establishes a detailed framework that financial entities and their ICT providers must adhere to in order to ensure digital operational resilience.
Technology risk management
Entities must design and implement robust risk management strategies, including:
System and resource mapping: Identifying and classifying critical technological assets and their interdependencies, such as systems, processes, and providers.
Continuous risk assessments: Monitoring systems for vulnerabilities, prioritizing risks, and developing mitigation strategies.
Business continuity and recovery plans: Preparing documented response plans for major disruptions, such as ICT system failures, cyberattacks, or natural disasters. These plans must include backup and restoration procedures, as well as communication strategies for clients and regulators.
Incident response and reporting
DORA introduces strict protocols for managing and reporting ICT-related incidents. Organizations must:
Classify incidents based on severity.
Report critical incidents to authorities in a structured manner, including an initial notification, progress updates, and a final report detailing root causes and corrective actions.
Coordinate with affected clients and partners to minimize operational and reputational damage.
Upcoming technical standards will define the exact reporting formats and deadlines to ensure compliance uniformity.
Operational resilience testing
DORA requires regular testing to evaluate the resilience of ICT systems against cyber threats. These include:
Annual basic assessments to identify vulnerabilities and assess system security.
Advanced testing for critical entities: Key financial institutions must conduct threat intelligence-based penetration testing at least every three years, involving relevant ICT service providers.
Third-party risk management
DORA extends regulatory oversight to ICT service providers, requiring financial institutions to:
Monitor external providers by enforcing contract clauses that specify security objectives, exit strategies, and periodic audits.
Prevent risk concentration, ensuring critical functions do not overly depend on a single provider.
Ensure vendor compliance, as authorities have the power to intervene and suspend contracts if providers fail to meet DORA standards.
How icaria Technology Helps Businesses Comply with DORA
icaria Technology solutions are designed to address DORA requirements by offering tools that optimize data management, security, and regulatory compliance. Here’s how each platform contributes:
icaria TDM (Test Data Management)
Managing test data is crucial to ensuring ICT systems are robust and compliant with DORA. icaria TDMprovides:
Real-world anonymized data: Enables secure testing with representative but safe data, minimizing exposure risks.
Automated resilience testing: Facilitates periodic assessments, including vulnerability evaluations and scenario testing, meeting DORA’s digital resilience requirements.
Risk and cost reduction: Prevents unnecessary data duplication and enhances test integrity, ensuring safer and more cost-effective systems.
National Plan for Scientific Research, Development, and Technological Innovation 2008-2011 and European Regional Development Fund (ERDF), (TSI-020514-2009-88).
The ICARIA TDM project, design and development of a new platform for the generation, management, and dissociation of test data with file number IDI-20191257, has been co-financed by the Center for Industrial Technological Development (CDTI).
The ICARIA BDM project, DATA GOVERNANCE MANAGEMENT, with file number IDI-20220712, has also been co-financed by the Center for Industrial Technological Development (CDTI).
Co-financed by the European Union, specifically through the FSE+ Program of the Community of Madrid, corresponding to the 2021-2027 financial framework.
Certificates and awards
Certified in ISO/IEC 27001:2013. Certificate number SI-0133/11
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