What challenges are organisations facing with DORA?
As financial entities work towards complying with the Digital Operational Resilience Act, they face several key challenges and hurdles to meeting DORA’s standards.
Given their complex nature, interpreting and understanding the many DORA regulations can be challenging. Organisations must invest significant time and resources to comprehensively understand the regulation’s requirements and develop tailored compliance strategies.
Many organisations face limitations in budget, manpower, and technical expertise required to implement the robust compliance measures demanded by DORA. This includes conducting thorough risk assessments, investing in advanced cybersecurity solutions, and upgrading legacy IT systems.
Outdated infrastructure and legacy systems within financial entities may lack the necessary capabilities and security measures to meet DORA’s requirements. Upgrading or replacing these systems can be a costly and complex undertaking.
The dynamic and sophisticated nature of cyber threats presents a constant challenge for organisations striving to maintain regulatory adherence. Continuous monitoring, assessment, and enhancement of security measures are necessary to keep pace with the evolving threat landscape.
DORA places a significant emphasis on managing the ICT risks posed by third-party service providers. Financial entities must establish robust oversight and due diligence processes for their extensive network of suppliers, which can be a complex and resource-intensive endeavour.
Regularly testing the digital operational resilience of financial entities, as required by DORA, can be a challenge. Organisations must develop a strategic and coordinated approach to vulnerability assessments, penetration testing, and other resilience exercises to ensure comprehensive coverage of their critical functions.
Embedding a culture of risk awareness, accountability, and continuous improvement across the organisation is crucial for effective DORA compliance. Overcoming siloed mindsets and aligning various teams, such as IT, compliance, legal, and risk management, can be a significant challenge.
Navigating these challenges will require financial entities to adopt a and a commitment to enhancing digital operational resilience will be essential to successfully meeting DORA’s requirements. proactive and collaborative approach, leveraging external expertise and solutions where necessary. Careful planning, strategic resource allocation,