Article 30 Digital Operational Resilience Act (DORA), Tasks Of The Lead Overseer

The Digital Operational Resilience Act (DORA) aims to enhance the resilience of the financial sector by ensuring that critical ICT third-party service providers meet high standards in managing ICT risks. Article 30 outlines the assessment and oversight processes for these providers, emphasizing the role of the Lead Overseer in maintaining robust ICT risk management practices. This article details the criteria for assessment, the development of individualized oversight plans, and the coordination between competent authorities and the Lead Overseer.

Assessment of ICT Risk Management

The Lead Overseer is responsible for evaluating whether each critical ICT third-party service provider has established comprehensive, sound, and effective rules, procedures, mechanisms, and arrangements to manage ICT risks that may impact financial entities. This assessment is crucial for ensuring the security and resilience of the financial sector's digital infrastructure.

Key Criteria For Assessment

The assessment includes several critical criteria:

• ICT Requirements: The Lead Overseer will evaluate the ICT requirements to ensure the security, availability, continuity, scalability, and quality of services provided to financial entities. This includes maintaining high standards of security, confidentiality, and data integrity.

• Physical Security: The assessment covers the physical security measures that contribute to ICT security, including the security of premises, facilities, and data centers. Ensuring physical security is fundamental to protecting ICT infrastructure from physical threats and vulnerabilities.

• Risk Management Processes: The evaluation will include the risk management processes, such as ICT risk management policies, ICT business continuity plans, and ICT disaster recovery plans. These processes are essential for identifying, managing, and mitigating ICT risks effectively.

• Governance Arrangements: The assessment examines the governance arrangements, ensuring that the organizational structure has clear, transparent, and consistent lines of responsibility and accountability for effective ICT risk management. Strong governance is necessary for implementing and maintaining robust ICT risk management practices.

• Incident Management: The Lead Overseer will assess the mechanisms for identifying, monitoring, and promptly reporting ICT-related incidents, particularly cyber-attacks, to financial entities. Effective incident management ensures timely resolution and minimizes the impact of such incidents.

• Data Portability and Interoperability: The evaluation includes mechanisms for data portability, application portability, and interoperability, ensuring financial entities can exercise termination rights effectively. These mechanisms are crucial for maintaining flexibility and reducing dependency on a single provider.

• System Testing: The assessment covers the testing of ICT systems, infrastructure, and controls. Regular testing helps identify vulnerabilities and ensures the resilience of ICT systems.

• ICT Audits: The Lead Overseer will review the ICT audits conducted by the service provider. These audits provide an independent evaluation of the provider's ICT risk management practices and identify areas for improvement.

• Standards Compliance: The assessment considers the use of relevant national and international standards applicable to the provision of ICT services to financial entities. Adherence to these standards ensures that the service provider follows best practices in ICT risk management.

Individual Oversight Plans

Based on the assessment, the Lead Overseer will adopt a clear, detailed, and reasoned individual oversight plan for each critical ICT third-party service provider. These plans are tailored to address the specific risks and requirements of each provider and ensure ongoing compliance with DORA. The oversight plans will be communicated annually to the critical ICT third-party service providers.

Coordination with Competent Authorities

Once the annual oversight plans are agreed upon and notified to the critical ICT third-party service providers, competent authorities may only take measures concerning these providers in agreement with the Lead Overseer. This coordination ensures a unified and consistent approach to overseeing ICT third-party service providers, avoiding conflicting actions and ensuring effective oversight.

The assessment and oversight of critical ICT third-party service providers under Article 30 of DORA are vital for maintaining the digital operational resilience of the financial sector. Through rigorous evaluation and individualized oversight plans, the Lead Overseer ensures that these providers meet high standards in managing ICT risks. The coordinated efforts between the Lead Overseer and competent authorities further strengthen the oversight framework, enhancing the security and resilience of the financial sector's digital infrastructure.