Due to the financial industry becoming increasingly digitized and reliant on technology in its daily operations, there are unique risks which prudential regulators across the world are trying to manage. In particular, there is a concern over services being provided by a small number of tech providers, and fears that the failure of a single provider could lead to a system issue for financial markets.
The European Commission introduced its draft Digital Operations Resilience Act (DORA) in September 2020 in order to support the goals of developing digital finance whilst simultaneously mitigating associated risks. This article provides an overview of DORA and what it would entail moving forward.
Authors: Peter Waters, Consultant, Mark Ferguson, Lawyer, and Ethan Huang, Graduate, Gilbert + Tobin