EU

DORA: ICT Risk Management

ICT Risk Management [Art 5-16]

Rule: Financial entities must establish and maintain a comprehensive ICT risk management framework with defined governance, policies, procedures, and controls.

Management Body Responsibility [Art 5]

The management body must:

DutyDescription
Bear ultimate responsibilityAccountable for ICT risk management
Define and approveICT risk management framework, strategy, tolerance levels
Approve and reviewDigital operational resilience strategy annually
Allocate budgetEnsure adequate ICT investment
Approve policiesICT security, business continuity, disaster recovery
Stay informedOn ICT risk exposure and major incidents
Undergo trainingKeep knowledge current on ICT risks

ICT Risk Management Framework [Art 6]

Must include:

ComponentRequirement
StrategiesICT risk management strategy
PoliciesComprehensive ICT policies
ProceduresProtocols for identification, protection, detection, response, recovery
ICT systemsAll ICT systems documented and classified
Risk identificationOngoing identification of ICT risk sources
Risk assessmentAssessment of impacts and likelihood
Continuous improvementAnnual review and improvement cycle

Protection and Prevention [Art 9]

Must implement:

Control AreaMeasures
Security policiesDocumented information security policy
Identity managementStrong authentication, access control
Physical securityPremises protection for ICT assets
Network securityPerimeter protection, encryption, segmentation
EncryptionFor data at rest and in transit
Vulnerability managementPatch management, vulnerability scanning
Malware protectionAnti-malware, endpoint protection
ICT change managementControlled changes, testing before deployment

Detection [Art 10]

Must have mechanisms to:

  • Detect anomalous activities
  • Identify single points of failure
  • Monitor ICT systems continuously
  • Have sufficient capacity for analysis
  • Report to management body promptly

Response and Recovery [Art 11-12]

ICT Response:

  • Documented incident response procedures
  • Roles and responsibilities defined
  • Communication protocols (internal and external)
  • Root cause analysis for major incidents

ICT Recovery:

  • Recovery time objectives (RTOs) for critical functions
  • Recovery point objectives (RPOs) for critical data
  • Business continuity plans
  • Regular testing of recovery capabilities

Business Continuity Policy [Art 11(1)]

Must cover:

ElementRequirement
ScopeAll critical/important functions
Business impact analysisExposure to disruptions assessed
Recovery objectivesRTOs and RPOs defined
CommunicationCrisis communication plan
TestingRegular testing requirements
ReviewAnnual review and update

Backup and Restoration [Art 12]

RequirementDetail
Backup policiesScope, frequency, media, retention
Restoration proceduresDocumented, tested
RedundancyICT capacity sufficient for continuity
SegregationBackup systems appropriately separated
Regular testingVerify backup integrity and restoration

Learning and Evolving [Art 13]

Must:

  • Gather intelligence from ICT incidents (own and industry)
  • Conduct post-incident reviews
  • Integrate lessons into risk framework
  • Monitor cyber threats
  • Update training based on evolving threats

Communication [Art 14]

AspectRequirement
InternalPolicies for staff communication during incidents
ExternalProtocols for authorities, clients, public
Responsible disclosureCoordinate disclosure of vulnerabilities

Simplified Framework for Some Entities [Art 16]

Available to:

  • Small non-interconnected investment firms
  • Payment/e-money institutions exempted under PSD2/EMD2
  • Small institutions for occupational retirement provision
  • Certain microenterprises

Simplified requirements:

  • Less prescriptive governance
  • Proportionate documentation
  • But still must manage ICT risks appropriately

Documentation Requirements

DocumentPurpose
ICT risk management frameworkOverall framework description
ICT strategyStrategic direction for ICT risk
Information security policySecurity standards and controls
Business continuity planResponse to disruptions
Disaster recovery planTechnical recovery procedures
ICT asset registerInventory of ICT assets
Risk registerIdentified risks and mitigations
Third-party registerICT third-party contracts

Citation

Art 5-16, Regulation (EU) 2022/2554

Contains public sector information licensed under the Open Government Licence v3.0 where applicable. This is not legal advice. Always refer to official sources for authoritative text.

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