DORA Requirements for Financial Entities

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Can you list the main requirements DORA imposes on financial entities?

The user is asking for a summary of the primary obligations placed on financial entities under the Digital Operational Resilience Act (DORA). The context suggests that the user is likely associated with a financial entity subject to DORA and is seeking to understand their compliance requirements. The goal inferred here is to gain an overview of DORA’s mandates to ensure operational practices align with regulatory expectations for digital resilience.

There are no significant ambiguities in the user’s question as it asks for the main requirements of DORA, which is a specific EU regulation that applies uniformly across financial entities in the EU.

Note: The junior lawyer is what we call a subsystem of Hotseat that completes helper tasks Given the clarity of the user’s question and the specificity of the regulation in question (DORA), there are no additional assumptions needed to conduct the legal analysis or to develop the plan for the junior lawyer.

Plan for the Junior Lawyer:

  1. Review the Scope of DORA:

    • Read Article 2 of DORA to understand which types of financial entities are covered by the regulation.

  2. Understand the Definition and Context of DORA:

    • Refer to Article 3 to familiarize yourself with key definitions under DORA, ensuring proper interpretation of the terms used throughout the regulation.

  3. Outline ICT Risk Management Requirements:

    • Analyze Article 6 to understand the requirements for establishing an ICT risk management framework and the specific governance and organizational requirements set out in Article 5.
    • Detail the expected measures for protection and prevention of ICT risks as described in Article 9.
    • Identify detection obligations by reviewing Article 10, and response and recovery provisions outlined in Article 11.
    • Summarize expectations around learning and adapting to ICT threats per Article 13, and communication requirements from Article 14.

  4. Detail ICT-Related Incident Management:

    • Understand the process for managing ICT-related incidents by reviewing Article 17.
    • Delineate the classification requirements for such incidents in Article 18.

  5. Explain Reporting Obligations for Major ICT-Related Incidents:

    • Review the reporting requirements for financial entities detailed in Article 19.

  6. Assess Digital Operational Resilience Testing:

    • Learn about general testing requirements under Article 24 and the specifics of advanced testing for ICT tools, systems, and processes in Articles 25 and 26.

  7. Identify Requirements for Managing ICT Third-Party Risk:

    • Study the principles outlined in Article 28 and the assessment of ICT concentration risk in Article 29.
    • Review the essential contractual requirements between financial entities and ICT third-party service providers as laid out in Article 30.

  8. Examine Oversight Framework for ICT Third-Party Service Providers:

    • Refer to Articles 31 and 32 to understand the oversight framework for ICT third-party service providers and operational coordination.

  9. Information Sharing Arrangements:

    • Look at Article 45 to gather information on how financial entities can share cyber threat intelligence.

  10. Review Competent Authorities and Powers:

    • Review Articles 46 and 50 to learn about the role of competent authorities in enforcing DORA and the available administrative penalties and remedial measures for non-compliance.

  11. Submit a Report:

    • Prepare a comprehensive report that lists and explains the main requirements imposed on financial entities under DORA, organized according to each relevant Article.

Definitions and Terms from the Digital Operational Resilience Act (DORA):

  • Financial Entity: Any entity that falls under the scope of DORA as defined in Article 2, which includes a variety of financial services providers such as credit institutions, investment firms, etc.
  • ICT Risk: Any risk that is associated with the digital operational aspects of a financial entity including the security, performance, and integrity of data and systems.
  • ICT-Related Incident: An event that could compromise the digital operational resilience of a financial entity.
  • Oversight Framework: The regulatory process and mechanisms outlined in DORA to supervise the compliance of financial entities with the Act’s provisions, mainly concerning ICT risks and digital operational resilience.

Question Clarity Rating

Somewhat clear

Clarity Rating Explanation

While the user’s intent is clear, seeking to understand the main obligations under DORA for financial entities, the question remains somewhat open-ended as it does not specify for what type of financial entity or under what context these requirements are being sought. There are also no details on whether the user seeks to compare DORA with other regulations for a comprehensive contextual understanding or whether the user is concerned with particular aspects of the financial operations. The answer will need to provide general information and make assumptions about the details of the financial entities and their operations.

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