The Digital Operational Resilience Act (DORA) establishes a new standard for financial institutions in the EU. By January 17, 2025, organizations must demonstrate their ability to maintain operational continuity in the face of cyberattacks and IT disruptions.
DORA’s framework is built around five core areas: robust IT systems, risk management, incident reporting, third-party oversight, and continuous testing. Among these, third-party monitoring presents a significant challenge. Financial institutions often depend on external providers for IT and security services, introducing potential vulnerabilities. To mitigate these risks, DORA mandates that firms assess and manage third-party dependencies rigorously.
In addition to third-party risk management, DORA emphasizes the importance of prompt and effective incident response. Financial organizations must be prepared to identify, contain, and report incidents swiftly, often within tight regulatory timelines. To support this, continuous monitoring and regular testing are essential. These practices ensure that systems remain resilient and capable of adapting to evolving threats.
Preparing for DORA compliance requires a proactive approach. Financial institutions should start by conducting a comprehensive assessment of their IT systems, identifying vulnerabilities, and addressing gaps in resilience. This includes implementing strong internal controls, securing critical assets, and ensuring robust incident response protocols.
Bowtie’s Zero Trust network security solution offers a unique way to address these requirements. Unlike traditional tools that rely heavily on external (cloud) infrastructures, Bowtie enables secure, direct connections between sites without any dependency on Bowtie’s networks or infrastructure. Additionally, no data or encryption keys are ever shared with Bowtie, ensuring that sensitive information remains fully under the organization’s control. This approach eliminates third-party risks while supporting compliance with DORA’s stringent requirements.
Establishing a clear roadmap, addressing third-party risks, and adopting innovative technologies will position financial institutions to meet DORA’s requirements and operate securely in an increasingly regulated environment.