The Digital Operational Resilience Act (DORA), effective since January 17, 2025, mandates that financial entities and their ICT third-party service providers (TPPs) adhere to stringent operational resilience standards. This regulation applies not only to EU-based companies but also to non-EU tech vendors offering services to EU financial institutions.
Key Implications for Tech Vendors:
- Applicability Beyond EU Borders: DORA’s reach extends to any ICT service provider supporting EU financial institutions, regardless of the provider’s location. This includes cloud platforms, SaaS vendors, cybersecurity firms, and other tech providers.
- Levels of Impact:
- Direct Oversight: Vendors designated as “critical ICT providers” by EU regulators are subject to direct regulatory oversight and compliance obligations.
- Contractual Obligations: If your services support critical or important functions of a financial entity, DORA compliance requirements may be embedded in your contracts.
- General Risk Management: Even if not classified as critical, financial entities are required to manage all ICT risks, potentially imposing lighter contractual obligations on your services.
- Contractual Requirements: Contracts with financial entities must include specific clauses covering:
- Security and risk controls
- Incident response and reporting
- Audit and oversight rights
- Termination and exit planning
- Preparation Steps:
- Assess whether your services are deemed critical or important to your financial clients.
- Review and align your contracts, security measures, and incident response processes accordingly.
Consequences of Non-Compliance:
Failure to comply with DORA can lead to regulatory sanctions, contract penalties, reputational damage, or loss of business. Financial entities are under pressure to demonstrate compliance and may cease partnerships with non-compliant providers.
At AUMINT.io, we specialize in helping tech vendors navigate DORA compliance through tailored cybersecurity solutions, contract assessments, and incident response planning.