One Year Until DORA: What Financial Services Needs to Know
As the deadline for the Digital Operational Resilience Act (DORA) approaches, financial services (FS) firms have just one year left to ensure compliance.
This final year is crucial for FS firms to align their digital operations with DORA’s requirements, ensuring not just compliance, but also strengthening their resilience against an array of digital threats.
The Digital Operational Resilience Act (DORA)
DORA, with its focus on enhancing the digital operational resilience of the financial sector, is based on five key pillars:
- ICT Risk Management: Establishing comprehensive and robust risk management frameworks for information and communication technology (ICT) systems.
- ICT-Related Incident Reporting: Implementing mechanisms for timely reporting of significant ICT related incidents.
- Digital Operational Resilience Testing: Mandating regular testing of digital systems to assess their resilience against disruptions.
- Third-Party Service Provider Oversight: Managing the risks associated with third-party ICT service providers, including cloud services.
- Information Sharing: Facilitating the sharing of cyber threat intelligence and best practices among financial entities.
In this final year before the DORA compliance deadline, FS firms should be ticking off this checklist of actions, amongst others:
- Conducting Comprehensive Risk Assessments: Review and update all digital operational risk management processes.
- Enhancing Incident Reporting and Response: Streamline processes for immediate incident reporting and effective response strategies.
- Intensifying Testing and Auditing: Undertake rigorous testing of digital systems to ensure resilience against potential threats.
- Reviewing Third-Party Relationships: Assessing the security protocols of all third-party ICT service providers.
- Promoting Information Sharing: Encourage sharing of best practices and threat intelligence within the sector.
How can a SOC support the 5 pillars of DORA Compliance
Security Operations Centre (SOC) services provide a comprehensive solution that supports FS firms in meeting the multifaceted requirements of DORA.
A SOC service aligns perfectly with these pillars by offering:
- Advanced Risk Management Support: Beyond continuous monitoring, SOCs use advanced analytics and predictive modeling to anticipate potential threats, allowing financial services firms to proactively adjust their security posture.
- Efficient Incident Reporting: A SOC service doesn’t just detect and report incidents in real time; it also categorises and prioritises them based on severity, ensuring that the most critical issues are addressed first.
- Regular Testing and Auditing: Cybersecurity service providers conduct not just regular, but also comprehensive penetration testing and vulnerability assessments, simulating various attack scenarios to evaluate the resilience of the systems.
- Third-Party Vendor Management: SOC services extend their surveillance so any traffic entering the network, internally or externally from third-party suppliers, is monitored and the business protected from malicious activity.
- Enhancing Information Sharing: SOC providers act as knowledge hubs, often partaking in industry-wide cybersecurity forums and industry councils, thereby keeping FS firms up to date on emerging threats and best practices.
Checklist for DORA Readiness:
As the DORA compliance deadline nears, financial services firms must ensure they are well-prepared. The following checklist is designed to help firms assess and bolster their operational resilience in line with DORA’s requirements. It covers essential areas from risk management frameworks to the management of third-party risks, emphasising the importance of a holistic approach to digital resilience.
- Review digital operational risk management frameworks
- Update incident response and reporting mechanisms
- Schedule regular digital resilience testing
- Assess and manage third-party ICT service provider risks
- Engage in sector-wide information sharing initiatives
- Consider partnering with a SOC service provider for enhanced compliance and security
This blog has outlined the critical steps financial services firms need to take as they prepare for DORA compliance. We’ve highlighted the integral role of Security Operations Centers (SOCs) in meeting DORA’s requirements, offering advanced risk management, efficient incident reporting, regular testing and auditing, third-party vendor surveillance, and enhanced information sharing.
By integrating a 24/7 SOC service into their operational framework, FS firms can arm themselves with a comprehensive solution to support DORA compliance, ensuring they are well-equipped to face the challenges and opportunities in the evolving landscape of digital operational resilience.
DigitalXRAID’s CREST Accredited Security Operations Centre (SOC) service operates 24/7 and is well versed in protecting Financial Services organisations against increasing cyber threats in line with regulations such as DORA and the Operational Resilience Framework. Get in contact to find out how we can support you.
