What is DORA and how will it affect me?

The Digital Finance Strategy is a European directive aimed at supporting and developing digital finance while maintaining financial stability and consumer protection. One of its key components is the proposed Digital Operational Resilience Act (DORA), which addresses ICT risks in the financial services sector by enforcing a framework for operational resilience. DORA will apply to various financial entities, including credit institutions, electronic money institutions, investment firms, insurance undertakings and reinsurance undertakings. The act focuses on improving incident management at financial entities through better ICT risk management and governance, improved incident reporting, ensuring strategies for managing third-party risk, and implementing "resilience" assessments. Financial entities will be required to report on incidents every year, with senior management involved in the process. Non-compliance with DORA could result in significant repercussions, including fines of up to 1% of daily worldwide turnover for third-party ICT suppliers.