What is DORA?
The Digital Operational Resilience Act is a European Union regulation that came into effect in January 2025, establishing binding requirements for how financial institutions including banks, insurers, investment firms, and their ICT service providers must manage digital risk. DORA requires organizations to implement robust ICT risk management frameworks, conduct regular resilience testing, establish incident reporting processes, and manage risks introduced by third-party technology providers. Unlike previous guidance that was largely principles-based, DORA is prescriptive and enforceable, with significant penalties for non-compliance. Financial organizations operating in or serving the EU must now treat digital resilience as a regulatory obligation rather than simply a best practice.