DORA Regulation: Why It Matters and How the Financial Sector Is Preparing for It

#1 What is DORA and why does the financial sector need it?

The Digital Operational Resilience Act (DORA) is a new EU regulation designed to strengthen the digital operational resilience of financial institutions — banks, insurance companies, and other key industry players. Instead of focusing solely on preventing incidents, it emphasizes a crucial reality: incidents will happen. The real question is how quickly and effectively an organization can respond, minimize damage, and maintain continuity.

#2 Main challenges for organizations

• Risk management – institutions must have a clear methodology, regularly perform risk assessments, and continuously update their findings. Only by understanding their own risks can organizations implement measures that truly add value.
• Third-party and outsourced service providers – DORA requires contracts to include security clauses, reporting obligations, and oversight mechanisms. Organizations must classify suppliers based on criticality and adjust their level of control accordingly.
• Incident reporting – the regulation sets strict timelines: an initial report within 4 hours of classification, a follow-up after 72 hours, and a final report once the incident is resolved. The aim is to promote transparency and learning from incidents.
• Resilience testing – this includes regular penetration testing, simulations, assessments of response plans, and, for the most critical institutions, regulator-supervised TLPT testing.
• The human factor – it’s not only about technology: most incidents are caused by human error. Training, awareness, and role-based education are therefore essential to successful implementation.

#3 How can organizations prepare?

1. Start with a risk assessment – identify which services are critical and which suppliers represent the highest risk.

2. Review your contracts – evaluate existing supplier agreements, add missing security provisions, and clearly define reporting and audit requirements.

3. Test and rehearse – don’t wait for an outage: run simulations, verify response plans, and conduct penetration tests.

4. Educate employees – build a security-focused culture and provide regular, role-specific training.

5. Apply proportionality – the size and maturity of the institution influence the implementation journey. Smaller organizations should focus on the most critical steps first.

#5 What does DORA mean for end-users?

Greater operational resilience leads to more reliable financial services: fewer outages, fewer disruptions, and better protection of user data. While institutions may need to invest more, the long-term outcome is a more stable and trustworthy financial environment.

DORA is more than a regulatory obligation — it is an opportunity. An opportunity for organizations to rethink their security approach, improve business processes, and strengthen customer trust. Start with a risk assessment, seek expert support if needed, and treat the DORA regulation as a step forward.

You can watch the full DigiChat episode featuring Uroš Žust, cybersecurity and financial sector regulation expert, for a deeper dive into the DORA regulation.

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