With the Digital Operational Resilience Act (DORA) set to take effect in January 2025, the clock is ticking for financial institutions to prepare. DORA’s extensive requirements can feel reminiscent of GDPR times, and the same advice applies: don’t wait for the deadline! To avoid compliance issues, financial institutions should act now. This article outlines the key steps to ensure your organisation is ready for DORA and protected from potential digital risks. While DORA specifically impacts EU financial institutions, UK businesses should note that the FCA is likely to adopt similar measures to ensure digital operational resilience
1. Planning is Key
Every financial institution already has processes and policies in place, but are they truly enough to meet DORA’s rigorous standards? Planning is essential to ensure that you are not only compliant but fully protected. DORA’s requirements are detailed and far-reaching, and failing to address them could result in significant consequences, such as loss of customer trust, financial penalties, and even personal liability for senior management.
2. Risk Management is more than just a buzzword
Risk management is a term thrown around frequently, but in this case, it’s not just a buzzword—it’s critical. Risks in any organisation, especially within financial institutions, need to be managed carefully. DORA mandates comprehensive risk frameworks for ICT (information and communication technology) systems, both on-premises and in the cloud.
While some of DORA’s requirements may seem like common sense (e.g., having basic cybersecurity measures in place), others require careful planning and execution. Key areas to focus on include:
Due diligence on vendors: Ensure that your third-party providers meet the same high standards.
Staff training: High-level staff need to understand DORA and its impact on operations.
Policies and procedures: Create comprehensive, up-to-date policies that address cybersecurity and risk management.
Implementation: It’s not just about having policies, how you implement them is crucial.
3. Audit Trails and Incident Reporting
Audit trails are one of the most critical aspects of DORA. You need to track and document every action and change made in your systems. Using tools like Atlassian’s suite of products, you can create comprehensive audit trails, which are essential for both monitoring and incident reporting.
Incident reporting is another key area of DORA compliance. Your organisation must have audit logs for both successful and unsuccessful login attempts, including the date and time of each attempt. Intrusion detection systems should be in place to identify and mitigate potential threats quickly.
4. Disaster Recovery and Resilience Testing
Having disaster recovery plans is not enough—you must test and refine them regularly. Think of this like a fire drill: everyone in your organisation should know their role and be prepared to execute the plan during a crisis. DORA requires financial institutions to conduct resilience testing annually, with more extensive testing every three years.
One of the key aspects of disaster recovery is backup management. HYCU, one of Sourcesense’s trusted partners, offers comprehensive backup solutions for Atlassian products and other platforms. Their tools not only back up data but also configuration settings, ensuring you can recover swiftly and efficiently.
5. Vendor Management and ICT Oversight
DORA emphasises the need for oversight of third-party vendors. Just because your systems are hosted in the cloud doesn’t mean you’re off the hook for ensuring security. It’s essential to understand what measures your cloud vendors have in place to protect your data. Additionally, you need to be vigilant about user access, both internal and external. Implement Single Sign-On (SSO) solutions across your applications to centralise identity management and reduce risk. Automate off-boarding routines to ensure that employees who no longer need access are promptly removed from systems. This not only reduces security risks but also helps ensure compliance.
6. Continuous Monitoring and Proactive Testing
Ensuring ongoing compliance with DORA requires continuous monitoring and proactive testing. Tools that offer intuitive reporting and behaviour monitoring, such as those offered by HYCU, can make it easier for your organisation to stay on top of potential risks. For example, colour-coded reports can draw attention to inactive users or unusual system behaviour, prompting action before problems escalate.
Additionally, user provisioning and off-boarding procedures must be automated to reduce human error. Conduct regular audits to ensure that user permissions are appropriate and that third-party collaborators are closely monitored.
Get Ahead of DORA Compliance
DORA brings significant changes to how financial institutions manage their ICT risk frameworks, but with careful planning and the right tools, you can ensure compliance and protection for your organisation. Start preparing today by assessing your current practices, updating your disaster recovery plans, and strengthening your vendor management processes.
At Sourcesense, we partner with HYCU to offer specialised solutions that help financial institutions meet DORA’s stringent requirements. By leveraging these tools and taking a proactive approach, you can ensure that your organisation is resilient, compliant, and protected in the face of future digital threats.
Stay tuned for our next post, where we will take a look into how HYCU and Sourcesense can provide the tools and support you need to navigate DORA.