The European Union's Digital Operational Resilience Act (DORA) is a significant piece of legislation aimed at enhancing the resilience and security of the financial sector against cyber threats and operational disruptions.
As technology continues to play an increasingly vital role in business and personal life, the need for a robust regulatory framework has become paramount. The Digital Operational Resilience Act (DORA) is a European Union regulation that entered into force during 2023 and will apply as of 17 January 2025. Whilst it may be geographically restricted to the European Union, like many other acts of legislation or regulation, it provides some good common-sense advice for organisations.
DORA sets out several key priorities and requirements such as:
These priorities lay out good advice for any organisation in any industry across the globe, not only financial institutions, to follow for safeguarding financial stability and protecting consumers from the potential consequences of operational disruptions and cyber threats.
Although regulations like DORA represent a significant step towards enhancing the digital resilience of organisations, its successful implementation will require a delicate balance between regulatory oversight, resource allocation, and the fostering of innovation. By carefully weighing the potential benefits against the challenges, organisations and policymakers can work together to create a more secure and resilient digital landscape for not only the financial services industry, but across the spectrum of all industries too.
