DORA

High-Level Overview of DORA and Its Relation to ISO 27001

DORA (Digital Operational Resilience Act) is a European Union regulation designed to ensure that financial institutions and their third-party providers maintain robust operational resilience against cyber threats and IT disruptions. Enforced from 2025, DORA focuses on mitigating risks that arise from the heavy reliance on digital infrastructure in the financial sector.

ISO 27001, on the other hand, is an international standard for Information Security Management Systems (ISMS). It provides a framework for organizations across industries to systematically manage information security risks and ensure the confidentiality, integrity, and availability of information assets.

Core Objectives of DORA

  1. ICT Risk Management: Implement comprehensive controls to manage IT and cybersecurity risks.
  2. Incident Reporting: Mandate timely reporting of major cybersecurity incidents to regulators.
  3. Testing and Assurance: Conduct regular tests on operational resilience, including disaster recovery and penetration testing.
  4. Third-Party Risk Management: Assess and manage risks posed by critical ICT service providers.
  5. Information Sharing: Encourage secure information-sharing practices about cyber threats and vulnerabilities.

How DORA Relates to ISO 27001

Though DORA is specific to the financial sector, its requirements align closely with many of the principles and controls outlined in ISO 27001, particularly in the following areas:

1. Risk Management

  • DORA: Requires financial entities to identify, assess, and manage ICT and cybersecurity risks across their operations.
  • ISO 27001: Provides a structured approach to risk assessment and treatment through Annex A controls and ISMS implementation, ensuring all identified risks are mitigated or managed.

2. Incident Management and Reporting

  • DORA: Mandates robust incident detection and reporting processes, ensuring incidents are logged, managed, and communicated to regulators.
  • ISO 27001: Includes controls for incident response and communication (Annex A.16), helping organizations establish structured processes for managing incidents and reducing their impact.

3. Business Continuity and Resilience

  • DORA: Focuses heavily on operational resilience, requiring continuity planning and testing.
  • ISO 27001: Incorporates business continuity principles within its framework (Annex A.17), ensuring organizations prepare for and recover from disruptions.

4. Third-Party Risk Management

  • DORA: Stresses the importance of monitoring and managing risks posed by third-party ICT providers, including conducting audits and ensuring compliance.
  • ISO 27001: Includes controls for supplier relationships (Annex A.15), guiding organizations in assessing and managing third-party risks effectively.

5. Testing and Assurance

  • DORA: Requires regular testing, including penetration testing, to ensure resilience.
  • ISO 27001: Supports this with controls for security testing and audit requirements (Annex A.12 and A.18).

6. Governance and Documentation

  • DORA: Mandates clear governance structures for ICT risk management, including executive accountability.
  • ISO 27001: Specifies governance requirements for the ISMS, including management involvement and documentation of policies and procedures.

Complementary Relationship

  • ISO 27001 as a Framework for Compliance: Financial institutions can use ISO 27001 as a foundation for meeting DORA’s requirements. Implementing an ISMS ensures structured risk management, robust controls, and documentation—key components of DORA compliance.

  • DORA’s Financial Sector Focus: DORA adds specific industry-level nuances, such as regulatory reporting and third-party ICT provider oversight, which go beyond the general scope of ISO 27001.

By aligning ISO 27001 practices with DORA’s requirements, financial entities can not only ensure compliance with the new regulation but also bolster their overall operational resilience and cybersecurity posture.