The Digital Operational Resilience Act (DORA) has been a hot topic for several months now, but January 2025 finally sees the new regulatory framework come into force for EU-regulated entities. In this blog, we explore why it’s being implemented, what this means for impacted firms, and how eflow has responded to ensure that our regulatory technology meets all the associated criteria.
What is DORA?
DORA is a regulatory framework introduced by the European Union to enhance the operational resilience of financial entities, ensuring they can withstand and recover from operational disruptions caused by cybersecurity threats or other risks. DORA applies to all EU-regulated entities and their critical service providers.
Why is DORA needed?
Thanks to the rapid digitisation of financial services over the last few decades, the use of information and communication technology (ICT) and digital tools is fundamental to how the sector operates. While some firms choose to develop their own in-house technological infrastructure, many organisations select external technology vendors to supply various systems that enable them to serve their clients quickly, safely and conveniently.
However, while the use of technology offers firms a wide range of operational benefits, it also increases their potential exposure to risk depending on the vendor they choose to work with. This is due to the fact that many third-party technology vendors are not directly supervised or subject to the same level of regulatory scrutiny as the firm itself.
If this risk is not managed appropriately, it can lead to the disruption of service delivery by the firm in question, as well as other financial entities. In a worse case scenario, widespread disruption to the financial services industry could result in significant economic implications on a global scale. As a result, ensuring that firms are operating to the highest standards of digital operational resilience is vitally important.
eflow’s commitment to compliance and security
At eflow, we are committed to meeting the highest standards of operational resilience and compliance. As a critical third-party service provider, we have enhanced our systems, processes and controls to align with DORA’s stringent requirements. This ensures that our services continue to meet our clients’ needs securely and reliably.
To ensure that we deliver the highest standards of service to our clients, we have implemented the following measures:
- Enhanced risk management frameworks: Upgrading our risk management practices to meet DORA’s expectations for identifying, assessing, and mitigating risks.
- Incident reporting and transparency: Ensuring timely notifications and detailed reporting of any incidents that may affect service continuity.
- Third-party risk assessments: Collaborating with our clients to meet DORA’s requirements for assessing and managing risks related to third-party providers.
- Operational resilience testing: Conducting regular, comprehensive testing of our systems to ensure their resilience and reliability under various scenarios.
- Governance and oversight: Strengthening our internal governance to meet regulatory demands and provide you with the assurance of our ongoing compliance.
At the moment, DORA only applies to EU-regulated entities or branches. eflow has taken the decision to apply the policies and procedures to all of our clients’ systems to ensure that they all benefit from the highest standards of digital operational resiliency.
Our recommendations for impacted firms
While we are taking significant steps to ensure compliance, your organisation may also have responsibilities under DORA. We recommend:
- Reviewing your internal policies to ensure they align with DORA requirements.
- Conducting risk assessments of your critical service providers.
- Collaborating with external vendors to share information and fulfil mutual obligations.
If you have any questions about DORA or how eflow’s regulatory technology meets the required standards, please do not hesitate to contact us and our team will be delighted to help.
