DORA Regulation: Financial sector must protect itself more effectively against cyber risks from 2025
The introduction of the Digital Operational Resilience Act, or DORA for short, by the European Union has far-reaching implications for the financial sector in Germany. This regulation – similar to the GDPR for data protection – aims to better protect the financial sector against cyber risks and thus increase the level of security for financial transactions in Europe.
For German financial service providers, this means stricter compliance requirements and a general increase in challenges, but also opportunities.
Importance of DORA for German financial service providers
The DORA Regulation aims to strengthen the digital resilience of financial institutions and service providers . This means that companies in the financial sector must ensure that they are able to maintain their digital services even under adverse circumstances and guarantee the security of their systems and data.
DORA is a response to the increased dependence of the financial sector on digital technologies and the continuous increase in cyber attacks on the European financial sector. Adequate risk management is therefore becoming an increasingly urgent task.
For whom is the DORA regulation mandatory?
The regulation is mandatory for banks, insurance companies, financial organizations and investment firms. However, third-party providers of technologies used by companies in the financial sector are also subject to the new regulation.
Notification from the Federal Financial Supervisory Authority: https://www.bafin.de/DE/Aufsicht/DORA/DORA_node.html
Challenges for German financial service providers
The implementation of DORA poses a number of challenges for German financial service providers.
Complexity of the requirements
The DORA regulation is extensive and complex, which makes implementation and compliance a challenge for financial service providers.
Technological adaptations
Many financial service providers have to adapt their existing IT systems and infrastructures to meet the requirements of DORA, which can involve considerable effort.
Risk management
The regulation requires companies to implement robust risk management procedures to identify, assess and manage digital risks, which requires a thorough analysis and review of existing processes.
Opportunities for German financial service providers
Despite the challenges, the DORA regulation also offers opportunities for German financial service providers.
Improved cyber security
DORA compliance should help to strengthen cyber security and increase customer confidence in the security of their financial transactions.
Competitive advantage
Companies that take early action to achieve DORA compliance can gain a competitive advantage by positioning themselves as trustworthy and reliable partners.
Innovation
Adapting to the requirements of DORA often also requires innovative solutions and technologies that have the potential to improve the efficiency and performance of financial services.
Email security: How does eXpurgate support DORA compliance?
eXpurgate is a highly efficient email security solution that helps financial service providers to improve the protection of personal data and meet the requirements of DORA. With advanced technologies such as machine learning and behavioral analysis, eXpurgate offers effective protection against email-based threats such as phishing, malware and spam.
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