Preparing for DORA: A Guide to Operational Resilience with Diligence Software

The Digital Operational Resilience Act (DORA) is set to revolutionize how the financial sector across the European Union manages operational and cybersecurity risks. Officially effective from January 17, 2025, DORA introduces stringent requirements to ensure financial institutions can withstand, recover from, and adapt to digital disruptions.

For French institutions, the Autorité de Contrôle Prudentiel et de Résolution (ACPR) has provided clear guidelines for compliance, with specific reporting deadlines starting as early as March 31, 2025. At Diligence Software, we’re proud to say that our XBRL Suite, including XBRL Express, is already configured to handle these changes seamlessly.

What Is DORA and Why Does It Matter?

The Digital Operational Resilience Act aims to strengthen the operational stability of financial institutions by ensuring they have the systems, processes, and reporting frameworks in place to handle digital risks. DORA’s key objectives include:

• Resilience to Operational Disruptions: Financial entities must have robust systems to ensure continuity in the face of cyber incidents or technical failures.
• Oversight of Third-Party Providers: Critical service providers, including cloud and IT suppliers, are now subject to direct regulatory supervision.
• Streamlined Reporting: Institutions must report operational incidents, cyber threats, and risks in a standardized, machine-readable format.

DORA affects a wide range of entities, from banks and insurance companies to payment service providers and third-party IT vendors. The stakes are high, as non-compliance can lead to regulatory penalties and reputational damage.

Key Implications for Financial Institutions

1. Increased Reporting Requirements

DORA mandates detailed and frequent reporting on operational resilience. This includes incidents, risk assessments, and audits submitted in standardized formats such as XBRL to ensure regulatory clarity and efficiency.

2. Third-Party Management Oversight

Institutions must closely monitor their critical service providers. This involves conducting risk assessments, ensuring contractual compliance, and reporting on their dependencies.

3. Cybersecurity and IT Risk Governance

Financial institutions are required to implement stricter cybersecurity protocols and conduct regular testing of their digital resilience.

4. Standardization Across the EU

By harmonizing requirements across member states, DORA creates a level playing field. However, this also means institutions must adapt quickly to comply with uniform EU-wide standards.

How Diligence Software Simplifies DORA Compliance

Diligence Software’s XBRL Suite, which includes XBRL Express, is specifically designed to address the challenges posed by new regulatory frameworks like DORA. Here’s how we help:

1. Pre-Integrated DORA Taxonomies

Our platform is already updated with the latest DORA-specific taxonomies. Whether it’s incident reporting, IT risk assessments, or third-party oversight data, Diligence ensures your reports are compliant with the mandated formats.

2. Automated Reporting Workflow

• Data Integration: Seamlessly collect and structure your operational resilience data.
• Validation: Automated checks ensure error-free reports before submission.
• Submission: Submit directly to regulators via our secure reporting channels.

3. Real-Time Updates and Adaptability

Regulations evolve, and so do taxonomies. Our tools are built to adapt in real time, so you’re always aligned with the latest DORA requirements.

4. Simplified Oversight of Third-Party Providers

Through XBRL Express, you can efficiently track and report on critical dependencies, ensuring transparency and compliance with third-party management rules.

5. Scalable and User-Friendly

Whether you’re a multinational bank or a smaller financial institution, our solutions scale to your needs, with intuitive interfaces that simplify complex reporting workflows.

What You Need to Do to Prepare for DORA

While Diligence Software streamlines much of the compliance process, financial institutions must take specific steps to ensure readiness:‍

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1. Understand Your Obligations‍

• Review DORA’s requirements for your institution.

• Identify which processes need to be updated or optimized.

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2. Assess Your Current Systems

• Evaluate whether your existing reporting tools can handle the new requirements.
• Look for gaps in IT risk management or third-party oversight processes.‍

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3. Leverage the Right Tools

• Adopt XBRL Express and XBRL Suite to ensure compliance with the new taxonomies.
• Automate workflows to reduce the burden on internal teams.

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4. Train Your Teams

• Ensure staff understand the implications of DORA.
• Provide training on new reporting processes and tools.

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5. Test and Validate Early

• Use Diligence Software to test your reports ahead of the January 2025 deadline.
• Ensure all data is accurate and formatted according to the required taxonomies.

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Key Deadlines to Remember

- January 17, 2025: DORA becomes legally effective across the European Union.

- March 31, 2025: First reference date for reporting Registers of Information (ROI).

- April 15, 2025: Final deadline for submitting Registers of Information (ROI) via OneGate.

Real-Time Reporting

The Incident Reports (IR) and Cyber Threat Reports (CT) must be submitted on a rolling basis, following a “real-time” reporting approach, with regularly updated data

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Why Diligence Software?

Navigating new regulatory landscapes like DORA can be challenging, but with the right tools and support, compliance doesn’t have to be overwhelming. At Diligence, we’ve designed our XBRL Suite to not only meet but exceed regulatory expectations.

With pre-loaded DORA taxonomies, automated workflows, and real-time updates, our solutions ensure that you’re always one step ahead. Our team of experts is here to support you every step of the way, from onboarding to ongoing compliance.

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Takeaway

The countdown to DORA compliance has begun, but with Diligence Software, you don’t have to face it alone. Our XBRL Suite, including XBRL Express, is ready to handle DORA’s requirements today, so you can focus on what matters most—running your business with confidence.

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