Nearly Half of UK Banks to Miss DORA Deadline

Nearly Half of UK Banks to Miss DORA Deadline

Understanding DORA: Strengthening Cybersecurity in Financial Services

The Digital Operational Resilience Act (DORA) is set to revolutionize cybersecurity practices across Europe’s financial services sector. This new regulation seeks to enhance operational resilience among various financial entities, including banks, insurance companies, and third-party technology providers. As the financial industry increasingly relies on IT systems, the need for stringent cybersecurity measures has never been more critical. DORA aims to mitigate risks associated with cyber disruptions that could potentially impact the broader economy.

What Does DORA Cover?

DORA encompasses several key areas designed to fortify cybersecurity frameworks:

  • IT Risk Management: Establishing robust frameworks to manage IT-related risks effectively.
  • Third-Party Risk Oversight: Implementing strict monitoring and governance of external suppliers and partners.
  • Operational Resilience Testing: Regular assessments to ensure organizations can withstand and recover from cyber incidents.
  • Cyber Incident Reporting: Clear protocols for reporting cyber incidents to relevant authorities.
  • Information Sharing: Promoting intelligence sharing among entities to enhance collective security.

According to Mitun Zavery, Vice President of Solution Architecture at Sonatype, DORA’s implementation is crucial for companies, especially those in the UK that have European clients. He warns that, similar to the General Data Protection Regulation (GDPR), last-minute compliance efforts can lead to complications. “The financial penalties for non-compliance will compel EU institutions to partner only with compliant entities,” he states.

Opportunities for UK Businesses in DORA Compliance

Rather than viewing DORA as a burden, Zavery encourages UK organizations to embrace it as a chance to enhance their systems and processes. By leveraging automation and adopting proactive risk mitigation strategies, businesses can strengthen their software supply chains while ensuring compliance. “Prioritizing compliance now will open doors as similar standards are likely to be adopted in the UK,” he adds.

Conclusion: The Importance of Preparing for DORA

As the financial services industry gears up for the full implementation of DORA, organizations must proactively address their cybersecurity strategies. Understanding and complying with DORA will not only protect individual businesses but also contribute to the overall resilience of the financial sector.

For further insights on cybersecurity regulations, check out our articles on cyber regulation in 2025 and building stronger bonds between CISOs and legal functions.

We’d love to hear your thoughts on DORA and its implications for the financial services sector. Join the conversation in the comments below!

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