Digital Operational Resilience Act (DORA)
Digital Operational Resilience (DORA) introduces key obligations and broad ICT Risk Management Framework for Finance Sector.
The Adoption of DORA
The financial services industry has historically been a prime target for threat actors, with stringent regulatory scrutiny. To meet these challenges, the adoption of the Digital Operational Resilience Act (DORA) introduces added compliance requirements for European financial organizations.
The introduction of the Digital Operational Resilience Act (DORA) in Europe has added an extra layer of compliance requirements to the financial sector. These new demands can be effectively managed with the implementation of centralized log management.
Timeline
Key Obligations of DORA
DORA's key provisions, found in Section II, encompass a wide range of requirements, touching on aspects such as ICT risk management, system protocols, identification, protection, prevention, detection, response, recovery, backup policies, learning, communication, and more. Additionally, for smaller and non-interconnected entities like investment firms, payment institutions, and electronic money institutions, Article 16 introduces a simplified ICT risk management framework. Beyond regulatory compliance, the essential foundation for a secure environment lies in having robust security technology to reinforce it.
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Implement and maintain robust ICT systems and technologies to mitigate ICT risks.
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Continuously identify all sources of ICT risks to implement preventive measures.
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Establish a system for promptly detecting unusual actions.
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Develop and implement business continuity strategies, disaster recovery plans, and ensure quick recovery from ICT-related incidents.
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Establish mechanisms for learning and evolving from both external events and internal ICT issues.
ICT Risk Management
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Establish and implement a management process for overseeing and recording ICT-related incidents.
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Classify incidents based on criteria outlined in regulations, refined by ESAs (EBA, EIOPA, ESMA).
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Report incidents to relevant authorities using a standardized template and unified process to establish supervisory authority.
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Submit initial, intermediate, and final reports on ICT-related incidents to both company users and clients.
ICT Incident Reporting
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Implement robust monitoring of risks stemming from reliance on ICT third-party providers.
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Harmonize key elements of service and relationship with ICT third-party providers for comprehensive monitoring.
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Ensure contracts with ICT third-party providers include necessary monitoring and accessibility details such as full service level description and data processing locations.
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Promote convergence on supervisory approaches to ICT third-party risks through Union Oversight Framework for service providers.
ICT Third Party Risk Management
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Regularly check elements within the ICT risk management framework.
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Promptly identify and eliminate weaknesses, deficiencies, or gaps, implementing counteractive measures as needed.
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Ensure digital operational resilience testing requirements are proportionate to entities' size, business, and risk profiles.
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Conduct Threat Led Penetration Testing (TLTP) or Red/Purple Team Assessment to address higher levels of risk exposure.
Resilience Testing
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Enhance the digital operational resilience of financial entities through collaboration.
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Raise awareness on ICT risks within the financial sector.
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Minimize the ability of ICT threats to spread across financial entities.
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Support entities' defensive, detection, mitigation, response, and recovery strategies.
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Encourage financial companies to share cyber threat intelligence and information with one another through agreements that safeguard sensitive data.
Information Sharing
Which Entities are impacted by DORA?
DORA, or the Digital Operational Resilience Act, casts a wide net of regulation, encompassing various entities such as banks, payment institutions, investment firms, and providers of crypto asset services, among others. Furthermore, critical third-party ICT (Information and Communication Technology) providers fall under its regulatory ambit.
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Banks
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Payment institutions
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Investment firms
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Providers of crypto asset services
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Critical third-party ICT providers
How can CyberSift help ?
Maturity Assessment
Conducting a thorough maturity assessment is vital to evaluate alignment with DORA requirements for financial institutions, encompassing banks, payment institutions, investment firms, crypto asset service providers, and critical third-party ICT providers. This assessment identifies strengths and weaknesses in cybersecurity, operational resilience, and regulatory compliance. Subsequently, a gap analysis reveals disparities between the current state and DORA mandates. To bridge these gaps and achieve compliance, a targeted mitigation plan is developed. This plan includes implementing enhanced cybersecurity measures, strengthening operational resilience frameworks, updating regulatory compliance practices, conducting training programs, fostering collaboration with third-party providers, and establishing continuous monitoring mechanisms.
Planning & Executing with CyberSift DORA Tracker
Executing a top to bottom comprehensive plan to adhere to all DORA requirements. Emphasizing on a comprehensive large-scale penetration test scenario, our approach will encompass several key elements to ensure effectiveness of security measures in place. Throughout the process, adherence to DORA requirements will be paramount. This will be facilitated by the use of our DORA TRACKER. which will enable seamless tracking of progress, task completion, and alignment with regulatory mandates.
By integrating these strategies and technologies, we'll not only enhance the client's cybersecurity posture but also streamline the path to achieving compliance with DORA regulations.
Log Management
In order to meet the rigorous compliance demands of DORA, the implementation of central log management, fortified by robust security analytics, stands as an indispensable tool. This integrated system facilitates uninterrupted monitoring while also empowering organizations to generate high-fidelity alerts, significantly expediting the response, investigation, and recovery processes in the event of security incidents. It not only aids in fulfilling regulatory requirements but also strengthens the overall security posture of financial institutions, ensuring their operational resilience.
Cybersift SIEM offers Centralized log management that supports various DORA compliance aspects, including:
Dashboard tailored for Monitoring
CyberSift Siem complements Firewalls, intrusion detection systems (IDS), and intrusion prevention systems (IPS) play central roles in network security by controlling incoming and outgoing traffic, detecting suspicious activities, and uncovering potential malicious servers.
By integrating these systems, organizations can improve network visibility and understanding, enhancing their ability to detect and respond to threats effectively.
Via CyberSift SIEM you will be able to collect and analyze data from network endpoints and nodes, providing real-time threat intelligence and aiding in the detection of indicators of attack (IoA). These tools can identify patterns of anomalous behavior, assisting organizations in gaining insights into potential threats within their networks.
