Article 4 Digital Operational Resilience Act (DORA), Governance and organisation
Article 4 of the Digital Operational Resilience Act (DORA) defines essential governance and management responsibilities for financial entities regarding ICT (Information and Communication Technology) risks. These obligations are central to establishing strong frameworks that mitigate cyber threats and maintain operational stability in the financial sector.
Governance and Organisation Under the Digital Operational Resilience Act (DORA)
Financial entities are mandated to establish robust internal governance and control frameworks aimed at effectively and prudently managing all ICT risks that could potentially impact their operations.
The management body of each financial entity bears the responsibility of defining, approving, overseeing, and ensuring the comprehensive implementation of ICT risk management frameworks. This entails:
(a) Holding ultimate accountability for the management of ICT risks within the organization.
(b) Clearly defining roles and responsibilities across all functions related to ICT to ensure transparency and efficiency.
(c) Determining and setting the appropriate level of risk tolerance concerning ICT risks, aligning with the entity's overall risk management strategy.
(d) Providing approval, continuous oversight, and periodic reviews of critical documents such as the ICT Business Continuity Policy and ICT Disaster Recovery Plan, essential for maintaining operational resilience.
(e) Approving and periodically reviewing ICT audit plans, actual audits conducted, and any substantial modifications made to these plans, ensuring thorough assessment and mitigation of ICT risks.
(f) Allocating sufficient budgetary resources to support the digital operational resilience needs of the organization. This includes provisions for ongoing training programs focused on enhancing ICT risk awareness and skills development among relevant staff members.
(g) Approving and regularly reviewing policies governing the utilization of ICT services provided by third-party service providers, ensuring compliance with regulatory standards and safeguarding against potential vulnerabilities.
(h) Receiving timely updates on agreements concluded with ICT third-party service providers, including any planned significant changes to these arrangements. Such updates should include summaries of risk analyses assessing the potential impacts of these changes on critical business functions.
(i) Staying informed about ICT-related incidents, their operational impacts, and the measures taken for incident response, recovery, and corrective actions. This proactive approach ensures prompt mitigation and resolution of any ICT-related disruptions.
Financial entities, excluding microenterprises, are required to designate a specific role or appoint a senior management member tasked with overseeing all agreements with ICT third-party service providers. This includes monitoring associated risk exposures and maintaining comprehensive documentation to support accountability and transparency.
Members of the management body are obligated to participate in regular training sessions aimed at acquiring and continuously updating their knowledge and skills related to ICT risks. This ongoing education enables them to effectively understand, assess, and mitigate potential ICT risks that could impact the operational resilience of the financial entity.
These provisions under Article 4 of DORA underscore the critical importance of robust governance structures, proactive management oversight, and continuous staff education in ensuring the digital operational resilience of financial entities amidst evolving ICT landscapes and emerging cyber threats.
