Over 40% of UK Financial Firms Unprepared for DORA Deadline: What It Means for the Industry
As the Digital Operational Resilience Act (DORA) compliance deadline looms, nearly half of the UK’s financial institutions are facing significant challenges. A recent survey conducted by Orange Cyberdefense reveals that 43% of these organizations are still navigating the complexities of DORA’s requirements and estimate they will need at least three additional months to ensure compliance. This delay puts them at risk of incurring substantial regulatory penalties, as reported by Computer Weekly.
Understanding DORA Compliance Challenges
The survey, executed by Censuswide, included insights from 200 chief information security officers and cyber decision-makers within the UK. While there is a general consensus that DORA will enhance resilience in the EU’s financial sector, several barriers to compliance persist:
- Internal prioritization issues: 28%
- Constrained timelines: 25%
- Lack of necessary skills: 24%
- Poor visibility into supply chains: 23%
To tackle these compliance challenges, an overwhelming 97% of the respondents indicated they are considering seeking external support.
Financial Commitment Towards DORA Compliance
Financial institutions are demonstrating a strong commitment to compliance, with 84% reporting they have received sufficient or more than adequate budgets. A related report from Rubrik Zero Labs noted that nearly half of the organizations surveyed have invested over €1 million (£842,000) in compliance-related activities.
Expert Insights on DORA Compliance
Richard Lindsay, a principal advisory consultant at Orange Cyberdefense, commented on the increasingly complex regulatory landscape. He stated, “The financial services industry is now navigating a maze of overlapping standards and laws. The threat landscape has also become more volatile, making financial institutions prime targets for cyberattacks.”
Key Objectives of DORA
DORA aims to enhance cybersecurity and operational resilience across various financial entities, including banks and insurance companies. The regulation mandates several critical measures:
- Comprehensive cyber risk assessments
- Integrated incident reporting
- Cyber resilience testing
- Cross-framework governance
Mitun Zavery, vice president of solution architecture at Sonatype, emphasized the urgency of DORA compliance, likening it to the General Data Protection Regulation (GDPR). He suggests that prioritizing these compliance efforts now can help mitigate future challenges and penalties.
For more information on DORA and its implications for the financial sector, visit the official European Commission website.
