On Jan. 16, 2023 of this year, the EU Digital Operational Resilience Act, also known as DORA (Regulation on Digital Operational Resilience in the Financial Sector), came into force.
The goal of this regulation is to make the financial sector in Europe stronger and more resilient. It emphasizes uniform security requirements for network and information systems to reduce the risks of IT failures and cyber attacks when using ICT.
DORA is part of a package of measures presented on Sept. 24, 2020, aimed at digitizing the financial sector. With it, the European Commission aims to strengthen competitiveness and innovation.
This European approach aims to promote the development and use of new technologies and products while ensuring financial stability and consumer and investor protection. The new regulation aims not only to improve IT security and cyber defense in the European financial sector, but also to strengthen the corresponding supervisory capabilities of the supervisory authority.
As of Jan. 17, 2025, financial institutions must be compliant with DORA. The regulation applies to a wide range of financial entities in the EU. These include banks, insurers, crowdfunding service providers, crypto service providers, pension funds and investment firms.
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