2025 DORA Contract Regulatory Changes
The financial industry is preparing for significant regulatory changes under the Digital Operational Resilience Act (DORA). This law aims to improve the ability of financial companies to handle problems. It ensures they can withstand, respond to, and recover from all kinds of ICT-related disruptions and threats.
What is DORA?
The Digital Operational Resilience Act (DORA) is a comprehensive regulatory framework introduced by the European Union to strengthen the operational resilience of financial institutions. DORA focuses on ensuring that financial entities can maintain their critical operations during and after severe operational disruptions. This includes requirements for ICT risk management, incident reporting, digital operational resilience testing, and third-party risk management.
DORA's main goal is to create a unified way to ensure digital operational resilience in the EU. This will reduce fragmentation and provide strong protection for the financial system. By implementing DORA, financial institutions will be better equipped to handle cyber threats, technological failures, and other operational risks.
Key Regulatory Changes in 2025
The 2025 DORA regulatory changes will introduce several new requirements for financial institutions. These changes aim to improve the financial sector's strength and keep it running well during disruptions. Some of the key changes include:
- Enhanced ICT Risk Management: Financial institutions will be required to implement robust ICT risk management frameworks. This includes identifying and assessing ICT risks, implementing appropriate controls, and continuously monitoring and managing these risks.
- Incident Reporting: Institutions will need to establish clear procedures for reporting ICT-related incidents. This includes reporting to the right authorities and stakeholders on time. It also means keeping detailed records of incidents and their effects.
- Digital Operational Resilience Testing: Regular testing of digital operational resilience will be mandatory. This includes doing penetration tests, checking for vulnerabilities, and other tests. These help ensure that systems and processes can handle and recover from disruptions.
- Third-Party Risk Management: Financial institutions will need to manage risks associated with third-party service providers. This includes doing careful checks, watching how third parties perform, and making sure they follow DORA rules.
How Calero's Market Data Management Solution Can Help
Market Data Management solutions play a crucial role in helping financial institutions comply with DORA regulations. These solutions provide a comprehensive approach to managing market data, ensuring that institutions can maintain operational resilience and meet regulatory requirements. Here are some ways Market Data Management solutions like Calero can help:
- Centralized Data Management: Market Data services provide a centralized platform for managing all market data. This ensures that data is accurate, consistent, and easily accessible, reducing the risk of data-related disruptions.
- Automated Risk Management: These solutions offer automated tools for identifying, assessing, and managing ICT risks. This includes real-time monitoring of data feeds, automated alerts for potential issues, and comprehensive risk assessment reports.
- Incident Reporting and Management: Market Data Management solutions include features for incident reporting and management. This helps institutions quickly find and report incidents. They can keep detailed records and take steps to prevent future problems.
- Compliance Monitoring: These solutions provide tools for monitoring compliance with DORA requirements. This includes tracking third-party performance, conducting regular resilience testing, and generating compliance reports for regulatory authorities.
- Scalability and Flexibility: Market Data Management solutions that are flexible help institutions adjust to changing rules and operational needs. This ensures that institutions can continue to meet DORA requirements as they evolve.
Looking Forward
The 2025 DORA regulatory changes represent a significant shift in how financial institutions manage their operational resilience. CTOs, CISOs, Heads of IT, and Heads of Information Security need to understand these changes.
Market Data Management solutions, like Calero's, offer tools to improve ICT risk management, streamline incident reporting, and ensure compliance with DORA. This support helps institutions stay strong and resilient in a complex and challenging environment.