5 Key Steps to DORA Compliance

As financial entities prepare for the implementation of the Digital Operational Resilience Act (DORA), it's crucial to have a clear roadmap for compliance. Building on our previous articles, "Implementing DORA: Lessons from a CTO" and "What is the Digital Operational Resilience Act (DORA)?", this post provides a guide into the five key steps that organizations should take to ensure DORA compliance and strengthen their operational resilience.

1. Assess risks and requirements

The foundation of DORA lies in a thorough understanding of your organization's current risk state and the specific requirements you need to meet.

Conduct a Comprehensive Risk Assessment

• Identify and catalog all critical ICT systems and infrastructure

• Evaluate potential vulnerabilities and threats to these systems

• Assess the potential impact of ICT-related disruptions on your business operations

• Consider both internal and external risk factors, including cyber threats, system failures, and third-party risks

Understand DORA Requirements

• Review the DORA legislation, paying attention to the specific provisions for your type of financial entity

• Identify gaps between your current practices and DORA requirements

• Prioritize areas that require immediate attention based on risk level and compliance deadlines

Leverage Existing Frameworks

• Align your assessment with established frameworks like NIST Cybersecurity Framework or ISO 27001

• Map DORA requirements to existing compliance efforts (e.g., GDPR, NIS and NIS2 Directives) to identify synergies and avoid duplication

2. Develop a comprehensive strategy

With a clear understanding of your risks and requirements, the next step is to create a robust strategy for DORA compliance and operational resilience.

Build an Operational Resilience Strategy

• Define clear objectives for your ICT risk management and operational resilience

• Develop key performance indicators and metrics to measure progress

• Create a roadmap with short-term and long-term goals for achieving and maintaining compliance

Establish a Governance Framework

• Define roles and responsibilities for DORA compliance across your organization

• Create a cross-functional DORA steering committee to oversee implementation

• Develop and document policies and procedures for ICT risk management, incident response, and business continuity

• Ensure executive oversight and regular reporting on DORA compliance efforts

Incident Response and Business Continuity Planning

• Develop detailed incident response plans for various ICT-related scenarios

• Create and regularly update business continuity plans that address DORA requirements

• Establish clear communication protocols for internal and external stakeholders during incidents

• Define recovery time objectives (RTOs) and recovery point objectives (RPOs) for critical systems

3. Implement Robust Security Measures

DORA compliance requires strong security controls and practices to protect against ICT risks and ensure operational resilience.

Strengthen Cybersecurity Capabilities

• Implement multi-layered security controls, including:  

• Strong access management and authentication (e.g., multi-factor authentication)

• Data encryption for sensitive information at rest and in transit

• Next-generation firewalls and intrusion detection/prevention systems

• Endpoint detection and response (EDR) solutions

• Regularly update and patch all systems and software

• Implement network segmentation to limit the spread of potential breaches

Enhance Backup and Recovery Processes

• Implement a robust backup strategy following the 3-2-1 rule (3 copies, 2 different media, 1 off-site)

• Regularly test backup and recovery procedures to ensure data integrity and system restoration capabilities

• Implement immutable backups to protect against ransomware attacks

Address Third-Party Risks

• Develop a comprehensive third-party risk management program

• Conduct due diligence on all critical ICT service providers

• Include DORA compliance requirements in contracts with third-party providers

• Regularly assess and audit third-party security measures and operational resilience

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4. Conduct Regular Testing and Audits

Continuous testing and auditing are crucial for maintaining DORA compliance and improving your operational resilience over time.

Implement a Comprehensive Testing Program

• Conduct regular penetration testing to identify vulnerabilities in your systems and networks

• Perform frequent disaster recovery (DR) tests to ensure the effectiveness of your recovery plans

• Carry out business continuity exercises to test your organization's response to various ICT-related scenarios

• Include third-party providers in your testing activities where relevant

Automate Threat Detection and Response

• Implement Security Information and Event Management (SIEM) solutions for real-time threat detection

• Utilize artificial intelligence and machine learning to enhance threat detection capabilities

• Develop and regularly update playbooks for automated incident response

Establish a Robust Audit Framework

• Conduct regular internal audits to assess DORA compliance and the effectiveness of your ICT risk management strategies

• Engage external auditors to provide an independent assessment of your DORA compliance efforts

• Develop a process for tracking and implementing audit findings and recommendations

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5. Train and Collaborate

Successful DORA compliance requires a culture of awareness and collaboration across your organization.

Provide Comprehensive Employee Training

• Develop role-specific training programs on DORA requirements and compliance procedures

• Conduct regular cybersecurity awareness training for all employees

• Simulate phishing and social engineering attacks to test and improve employee readiness

Foster Cross-Functional Collaboration

• Establish regular meetings between IT, legal, risk management, and business units to discuss DORA compliance

• Create channels for sharing information and best practices across different teams and departments

Engage with External Stakeholders

• Collaborate with regulatory bodies to stay informed about DORA interpretations and expectations

• Establish relationships with cybersecurity partners and vendors to enhance your threat intelligence and response capabilities

Achieving and maintaining DORA compliance is a complex but essential task for financial entities operating in the EU. By following these five key steps – assessing risks and requirements, developing a comprehensive strategy, implementing robust security measures, conducting regular testing and audits, and fostering a culture of training and collaboration – organizations can not only meet regulatory requirements but also significantly enhance their operational resilience.

Remember that DORA compliance is an ongoing process, not a one-time effort. Regularly revisit and refine your approach to ensure that your organization remains resilient in the face of evolving ICT risks and regulatory expectations.

Additional Resources:

• Implementing DORA: Lessons from a CTO ‍
• What is the Digital Operational Resilience Act (DORA)? ‍
• Get Started with DORA Compliance Checklist! ‍
• Decoding DORA - Navigating Digital Resilience in Finance ‍
• DORA In Atlassian Cloud: An Expert Approach To Compliance

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