The Digital Operational Resilience Act (DORA), a new EU regulation enforcing stricter IT risk management procedures, will go into effect in January 2025 to protect financial systems from disruptions and cyberattacks. With cyberattacks on financial institutions on the rise, the average cost of a data breach in the financial industry worldwide reached a staggering 5.9 million U.S. dollars in 2023. Robust cybersecurity is more critical than ever. This article explores the key requirements of DORA and how Cyrex' penetration testing services can help you achieve compliance and build an even stronger digital defence.
What is DORA and Why Does it Matter?
The Digital Operational Resilience Act (DORA) is a new EU regulation that aims to make the financial sector in Europe more resistant to cyber threats and other IT disruptions. It does this by setting out requirements for financial institutions on how they should manage their IT risks.DORA applies to a wide range of financial entities, including banks, insurance companies, and investment firms across the European Union.
Here's a simplified breakdown of what DORA covers:
- Stronger IT security: Financial institutions will need to have a robust IT risk management framework in place to identify, assess, and mitigate IT risks.
- Managing third-party risk: DORA also covers risks from third-party IT service providers. Financial institutions will need to carefully assess and monitor the risks posed by these providers.
- Regular testing: Institutions will need to conduct regular testing of their IT systems and incident response plans to ensure they can withstand a cyberattack or other disruption.
- Reporting incidents: Financial institutions will be required to report major IT-related incidents to the authorities.
How Cyrex Can Help You Facilitate DORA Compliance
DORA's emphasis on robust IT security aligns perfectly with Cyrex' industry-leading penetration testing services. Here's how Cyrex can empower your financial institution to achieve DORA compliance and build an even stronger digital defence:- Uncovering Potential Risks and Vulnerabilities: DORA mandates proactive identification of IT risks. Cyrex' experienced security engineers excel at finding and reporting security weaknesses in all types of applications, mimicking real-world cyberattacks. This aligns directly with DORA's goals.
- Multiple Testing Options for Tailored Security Assessments: DORA doesn't prescribe a specific testing methodology. Cyrex offers black-box, grey-box, and white-box penetration testing, allowing you to choose the level of access and information that best suits your needs. This flexibility ensures a comprehensive security assessment that meets DORA's requirements.
- Pair Hacking for Enhanced Threat Simulation: Cyrex' unique pair hacking methodology fosters collaboration among our security engineers, mimicking real-world attacker collectives. This ensures a thorough examination of your systems, going beyond what a single tester might uncover. This aligns with DORA's focus on robust IT security practices.
- Clear and Comprehensive Reporting: DORA requires financial institutions to understand their IT risk landscape. Cyrex provides detailed reports following every penetration test, outlining vulnerabilities, potential risks, and recommended solutions. These reports empower you to prioritise remediation efforts and demonstrate compliance with DORA's reporting requirements.
- Regression Testing: DORA emphasises the importance of ensuring security measures remain stable and functional after system updates. Cyrex' regression testing service actively ensures the effectiveness of newly implemented security measures.
- Load Testing: DORA highlights the need for operational resilience. Cyrex' load testing services can help ensure your systems can withstand high volumes of traffic during cyberattacks or peak business periods.