Welcome to today’s blog on managing compliance in banking and finance, specifically focusing on leveraging DORA compliance to increase operational resilience. DORA (Digital Operational Resilience Act) is an EU regulation to manage and reduce technology risks in the financial sector. In this blog, we will explore the importance of DORA compliance, the complexities of the modern enterprise, and how Runecast can effectively achieve DORA compliance.
Why is compliance important?
Compliance is a crucial aspect of any organization, especially in the financial industry. It helps implement checks and balances to ensure safe operations and minimize risks. Compliance is intended to prevent data breaches and protect companies from potential harm. According to data breaches by 2022, compliance will play a critical role in reducing the occurrence of such incidents.
In today’s rapidly evolving technology landscape, companies are faced with increasing complexity. As new technologies are introduced, companies must adapt and overcome additional challenges. This complexity leads to a lack of visibility and makes it difficult to protect what is not visible. From offices to data centers to cloud transformations, companies must navigate this complexity to achieve compliance.
Transparency is key to understanding and managing the risks associated with complex environments. Companies not only need to create transparency about known elements, but also uncover hidden vulnerabilities and potential risks. Without comprehensive visibility, compliance efforts will fail and companies will be exposed to potential threats.
Also Read: Runecast 6.7 released with DORA compliance and other features
Steps to achieve compliance
To achieve compliance, companies must follow a maturity model that guides them to optimal compliance levels. The model consists of several stages:
Reactive phase
In the reactive phase, compliance efforts are ad hoc and business units work in silos. There is a lack of coordination and overall compliance strategy.
preliminary stage
Organizations identify a need for compliance in advance due to incidents or audits. Basic policies and controls have been put in place, but it is becoming apparent that more is needed.
Defined stage
In the defined phase, organizations develop overarching policies and controls to ensure compliance across the organization. Clear leadership and measurement mechanisms are established to monitor compliance efforts.
Integrated stage
In the integrated phase, compliance efforts are well funded and cross-functional policies and procedures are in place. Automation plays an important role in maintaining compliance as it becomes increasingly difficult to manage the complexity of the environment.
Optimized stage
The optimized level is the gold standard of compliance. Organizations at this stage have achieved continuous compliance, where security and a compliance-conscious culture permeate all levels of the organization. Comprehensive processes and policies are in place and automation is used to ensure compliance.
Applying the maturity model to DORA compliance
DORA is a new security standard that specifically addresses digital resilience in the EU financial sector. Financial institutions must comply with their regulations by January 2025. To achieve DORA compliance, companies must go through the phases described in the maturity model.
Key responsibilities within DORA compliance include:
Digital resilience tests
Regular testing of systems to identify vulnerabilities and assess resilience to potential disruptions. This includes stress tests and scenario analyses.
Incident reporting and management
Create strategies to respond to digital incidents in a timely manner, align with stakeholders, and comply with reporting requirements.
Third Party Risk Management
Thoroughly assess and continually monitor risks associated with third-party service providers. Protocols must be created that comply with DORA standards.
Technology investments
Assess, select and implement technologies and tools that meet DORA requirements for risk identification, prevention and mitigation.
Also Read: Runecast 6.6 released with agentless vulnerability screening and Runecast SaaS features
Challenges of DORA compliance
DORA compliance comes with its own challenges:
Compliance complexity
Understanding and complying with DORA’s various rules and regulations can be complex and requires a thorough understanding of its provisions and implications.
Integration with existing systems
Seamlessly integrating DORA rules and requirements into existing IT infrastructure may require modifications and changes to data processing, security protocols and more.
Cost implementations
Meeting DORA compliance requirements requires significant financial investments in technology, training and personnel. Budget constraints can be particularly challenging for smaller institutions.
How can Runecast help with DORA compliance?
Runecast provides a comprehensive platform to help companies comply with regulations, including DORA compliance. It offers visibility, vulnerability management, compliance assessment and automation features. Runecast recently launched Runecast 6.9 with improvements to agentless scanning, MS Word export, CIS CSC HIPAA update and more.
With Runecast, organizations can:
Create visibility
Runecast’s platform helps companies gain comprehensive insight into their infrastructure and uncover vulnerabilities and potential risks.
Manage vulnerabilities
Vulnerability scanning allows organizations to identify and prioritize vulnerabilities, effectively allocating resources for remediation.
Ensure compliance
Runecast’s platform supports compliance efforts by helping organizations establish and enforce policies and procedures aligned with DORA requirements.
Automate processes
Automation is a critical component to maintaining compliance. Runecast’s platform enables companies to automate processes, reduce manual effort and ensure ongoing compliance.
Optimize DORA compliance with Runecast Automation
Simplify DORA compliance across your entire IT infrastructure
Runecast provides a comprehensive solution for automating DORA compliance checks for VMware vSphere and NSX, as well as Windows and Linux operating systems. Their platform enables financial institutions to manage the complexities of DORA efficiently and effectively.
Key Benefits
- Automated reviews: Streamline vulnerability assessments and security audits for continuous compliance monitoring.
- Real-time insights: Gain real-time visibility into configuration management and vulnerability status.
- Best practice orientation: Ensure alignment with DORA best practices to ensure operational transparency.
- Focus on growth: Free up valuable IT resources to focus on strategic initiatives.
Effortless renovation and wide coverage
Runecast goes beyond automated reviews. We provide clear steps to resolve identified issues, such as: B. Misconfigurations or non-compliance findings. Our solution seamlessly covers on-premise, hybrid and multi-cloud environments and ensures comprehensive DORA compliance across your entire IT landscape.
Penalties for non-compliance with DORA
Financial and reputational risks of non-compliance
Failure to comply with DORA can have significant consequences for financial institutions operating in the EU. Possible impacts include:
- Administrative penalties: Companies can face fines of up to 10 million euros or 5% of their annual turnover.
- Reputation damage: Failure to comply can significantly damage an institution’s reputation and undermine customer trust.
- Withdrawal of approval: Repeated violations can lead to the revocation of the operating license and thus to the de facto cessation of business operations within the EU.
Compliance with DORA is not just a regulatory obligation; It is a critical business necessity. By proactively meeting DORA requirements, financial institutions can secure their operations, protect their reputation and gain a competitive advantage in the EU market.
Also read: Runecast 6.5.5 improves compliance and user experience
FAQs
What is DORA?
DORA stands for the Digital Operational Resilience Act, an EU regulation to manage and reduce technology risks in the financial sector.
When must DORA compliance be achieved?
Financial institutions in the EU must be DORA compliant by January 2025.
Who does DORA apply to?
DORA applies to financial institutions, including banks, financial services companies, insurance companies and third-party service providers.
What are the main responsibilities within DORA compliance?
Key responsibilities include digital resilience testing, incident reporting and management, third party risk management and technology investments to meet DORA standards.
How can Runecast help with DORA compliance?
Runecast provides a comprehensive platform that provides visibility, vulnerability management, compliance assessment and automation capabilities, helping organizations achieve and maintain DORA compliance.
Diploma
DORA compliance is a major challenge for financial institutions in the EU. However, companies can overcome these challenges by following a maturity model and leveraging automation tools like Runecast’s platform. Achieving ongoing compliance is critical to operational resilience and minimizing risk.
If you want to achieve DORA compliance or have specific questions about your company’s compliance efforts, you can contact Runecast for a personalized consultation. They accompany you through the process and help you optimize your systems in terms of compliance and resilience.
More information about Runecast DORA can be found HERE.
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