The Digital Operational Resilience Act (DORA), Explained

The Digital Operational Resilience Act (DORA) is a European Union regulation aimed at strengthening the resilience of financial entities to information and communication technology (ICT) risks. DORA sets out a range of security controls and requirements that financial entities must implement to comply with the regulation, which includes establishing an ICT risk management framework, incident reporting procedures, business continuity plans, third-party risk management, robust security measures, governance, and oversight mechanisms. The regulation applies to various financial entities, including banks, investment firms, insurance companies, payment institutions, and more, as well as ICT service providers. DORA has a phased implementation schedule, with most requirements entering into force on January 16, 2023, and the final deadline for full compliance set for January 17, 2025. Entities that fail to comply with DORA may face significant fines and penalties, including daily penalties and fines up to 2% of their annual global turnover. To achieve compliance, financial entities can leverage various security standards and frameworks, such as ISO/IEC 27001, ISO 22301, and COBIT, among others. Bugcrowd can also provide support with DORA compliance through its Vulnerability Disclosure Programs, Managed Bug Bounty and Pen-testing-as-a-Service engagements, and other services.