Preparing for DORA Regulations: From Fundamentals to Vendor Selection

The Digital Operational Resilience Act (DORA) is a landmark regulation in the European Union aimed at addressing the unprecedented risks associated with digital financial services, which have become increasingly dependent on modern technologies. DORA imposes requirements on financial institutions to enhance operational resilience and security, including ICT risk management strategies, incident management, digital operational resilience testing, third-party risk management, governance & oversight, information sharing, and vendor evaluation. To comply with DORA, technology leaders must take a proactive role in evaluating vendors and assessing their resilience capabilities, track record, and security maturity. This requires considering four primary dimensions: critical dependency, resilience capabilities, track record, and security & compliance maturity. By adopting the principles of DORA, technologists can build a stronger foundation for their organization and customers, position themselves as key drivers of innovation, security, and trust, and ultimately achieve wins in smoother onboarding processes, uninterrupted services, and avoiding fines from regulators.