The Digital Operational Resilience Act (DORA) is an EU regulation designed to strengthen the digital operational resilience of financial institutions, ensuring that they can withstand, respond to, and recover from all types of Information and Communication Technology (ICT)-related disruptions and threats. This regulation mandates that financial entities implement comprehensive ICT risk management frameworks, conduct regular testing, and ensure robust incident reporting and information sharing.
For procurement and supply chain professionals, understanding DORA is essential because it impacts how they select and manage their ICT suppliers and service providers. Compliance requires procurement teams to ensure that their third-party vendors and partners adhere to the stringent cybersecurity and resilience standards outlined by DORA. This includes verifying that suppliers have adequate measures in place to protect against cyber threats and can maintain operational continuity in the face of disruptions.
Non-compliance with DORA can lead to significant financial penalties, operational disruptions, and reputational damage. Therefore, procurement and supply chain professionals must integrate DORA requirements into their vendor selection, contracting, and monitoring processes to mitigate risks and ensure regulatory compliance.