DORA stands for the Digital Operational Resilience Act. Introduced on January 16, 2023, DORA is a comprehensive regulatory framework established by the European Union (EU) for incident reporting, resilience testing, third-party risk management and information sharing among financial institutions and their supporting technology providers.
While primarily targeting EU entities, its ripple effects extend to businesses worldwide, including the UK and the broader business ecosystem. This means that even if you’re not a bank or insurer, understanding DORA and its provisions is important for your business.
Why is DORA Important?
During the famous Twitter Bitcoin scam, 130 high-profile Twitter accounts were reportedly hacked and used to solicit Bitcoin donations of up to US$110,000. If Twitter had been subject to DORA’s requirements, it would have been mandated to potentially identify vulnerabilities in its systems, improve its response to the breach, and minimise the impact of that kind of cyber incident.
As cyberattacks become more sophisticated, DORA aims to ensure that businesses have robust security systems to protect against such breaches. Non-compliance could lead to financial and reputational losses, including loss of business opportunities within the EU market.
That’s not all. A UK tech firm that aligns its services with DORA’s requirements could position itself favourably when bidding for contracts with EU financial entities. This is particularly relevant for firms that rely heavily on third-party providers, as they must ensure that their partners also maintain operational resilience.
Is DORA Compliance Easy or Difficult?
It depends, particularly in the post-Brexit context. New technologies, staff training and process upgrades are all necessary to meet the regulation’s requirements. This can be tricky for small and medium-sized enterprises (SMEs), and could strain their already limited resources.
Bigger enterprises, on the other hand, could handle the cost better but also require a complete overhaul of their existing IT systems with complex integrations and updates.
The common denominator is that establishing a robust process to detect, manage, test and notify ICT-related incidents will require some level of change and investment.
For example, an enterprise bank could invest in AI-powered threat detection systems and staff training programs, while a smaller fintech could partner with an IT service provider to assess risks, identify technology gaps, and implement necessary solutions.
How Can We Help?
According to KPMG, 78% of enterprises experienced identity-based breaches that directly impacted their operations. What you need is a secure and effective DORA compliance plan tailored to your organization’s specific needs.
At Seamfix, we have helped over 1,000 businesses handle cybersecurity threats and meet compliance with AI-powered verification solutions.
Now you can:
- Conduct background checks on employees and use biometrics to ensure that only authorized personnel have access to critical systems and data which are central to DORA’s objectives.
- Streamline the collection and submission of data with a centralized dashboard for full compliance with the audit and reporting requirements.
- Identify unusual activities that may indicate a security threat with AML/PEP screening to mitigate risks before they escalate.
- Save huge infrastructure costs as we seamlessly integrate with your existing workflow.
Let’s help you keep your UK business compliant. Book a free call today. We’ll assess your security risks and provide the perfect solution.
