Author: Daniel Dore, CEO and Founder at Assured Thought
As the CEO of Assured Thought and a specialist in Quality Engineering, I find the impending full applicability of the European Union's Digital Operational Resilience Act (DORA) in January 2025 to be a pivotal moment for financial firms, especially those based in the UK. With my experience both in regulatory landscapes and technology, I believe that understanding and preparing for DORA is not just about compliance—it’s about securing a competitive edge in the increasingly digital global market.
The Significance of DORA for Financial Stability
DORA is designed to enhance the operational resilience of the financial sector against ICT disruptions and threats. Applicable to a wide array of financial entities—from banks to insurance companies—it aims to standardise ICT risk management frameworks across the EU. This is critical as the financial sector’s dependency on digital technologies escalates, bringing with it increased vulnerabilities to cyber threats and IT disruptions.
Why UK-Based Financial Services Must Take Note
Despite Brexit, UK-based financial services firms must pay close attention to DORA for several compelling reasons:
- EU Operations and Services: Many UK firms continue to operate in the EU or provide services that reach European customers. Compliance with DORA is mandatory for these engagements.
- Regulatory Scope: DORA’s reach includes firms providing critical financial services to the EU market, encompassing digital services like payment systems and online trading platforms.
- Third-Party Interactions: The regulation imposes strict rules on managing ICT third-party risk, essential for UK firms using service providers that handle significant data and operations within the EU.
- Competitive Advantage: Alignment with DORA’s standards can enhance a firm’s reputation, appealing to clients and partners within the EU and boosting overall market competitiveness.
- Simplified Multi-jurisdictional Operations: Adherence to DORA can reduce the operational and legal complexities for UK firms operating transnationally.
Early Assessment and Preparation
With the deadline looming, it’s crucial for firms to begin preparations now. Early assessment helps identify gaps in current ICT risk frameworks and align operational resilience practices with DORA’s stringent requirements.
How Assured Thought Can Assist
At Assured Thought, we leverage our deep expertise in Quality Engineering, QA, and Software Testing to support firms navigating DORA compliance. We offer:
- Consulting and Strategy Development: Helping firms understand DORA’s demands and craft strategies for digital operational resilience that meet regulatory expectations.
- Operational Resilience Audits and Testing: Specialised services in resilience testing, including scenario-based and penetration testing, to ensure systems can withstand potential ICT threats.
- Third-Party Risk Management: We enhance third-party risk management processes to align with DORA’s requirements.
Conclusion
As we move closer to DORA’s full implementation, the act is more than a regulatory hurdle; it represents a strategic opportunity for UK financial firms. By proactively adapting to these regulations, firms not only ensure compliance but can also leverage this adherence to fortify their defences and reputation in an evolving financial landscape.
For more insights and support on DORA compliance, connect with us at Assured Thought, where we are ready to help you turn these regulatory challenges into opportunities for growth and resilience.
For more expert advice from Assured Thought, the QE and testing provider of the financial services industry, click here: https://assuredthought.com/contact-us/
