DORA: The new regulation to protect banks, fintechs and investment firms from cyberattacks

All financial institutions – including banks, fintech companies and crypto asset providers – are being called to comply with the EU’s new Digital Operational Resilience Act (DORA) by 17 January 2025 when it comes into effect.

Dubbed the EU’s most ambitious attempt to regulate cyberattacks to date, the aim is to ensure the safety and resilience of the entire European financial sector in conditions of rapid digital transformation.

Essentially, the new regulations aim to create a robust framework to govern ICT (information and communication technologies) in the financial sector, to prevent serious business disruptions.

The official DORA website provides more insight: “The Digital Operational Resilience Act (Regulation (EU) 2022/2554) solves an important problem in the EU financial regulation. Before DORA, financial institutions managed the main categories of operational risk mainly with the allocation of capital, but they did not manage all components of operational resilience. After DORA, they must also follow rules for the protection, detection, containment, recovery and repair capabilities against ICT-related incidents. DORA explicitly refers to ICT risk and sets rules on ICT risk-management, incident reporting, operational resilience testing and ICT third-party risk monitoring. This Regulation acknowledges that ICT incidents and a lack of operational resilience have the possibility to jeopardise the soundness of the entire financial system, even if there is "adequate" capital for the traditional risk categories.”

For more information, visit https://www.digital-operational-resilience-act.com/

Read More

Cyprus included in Dealroom global list of ‘Top countries- VC investment per capita 2024’
Become a Real Game Changer: Win a Full Scholarship from Energame and CIM – Cyprus Business School
CBN Young Dragon Awards by category: Services
Kristofer Richard Kraus resigns from Hellenic Bank’s Board of Directors
Schools awarded for their documentaries at Synekpaidefsi 2023-2024
Refan to open new store at the Mall of Cyprus
Estella Hotel to make way for €4 million Global Tower office development (pics)
Philippines Secretary of Foreign Affairs to pay official visit to Cyprus
Health Minister to represent Cyprus at EU Health Council
President and Banks Association discuss economy, dialogue with USA and digital transformation