DORA
EU regulation for digital operational resilience in financial sector
APPI
Japan's regulation for personal information protection.
Quick Verdict
DORA mandates ICT resilience for EU finance against disruptions, while APPI enforces personal data protection for Japan businesses. Financial firms adopt DORA for regulatory compliance; global companies use APPI to handle Japanese data securely and avoid fines.
DORA
Regulation (EU) 2022/2554 Digital Operational Resilience Act
Key Features
- Mandates comprehensive ICT risk management frameworks overseen by management
- Standardizes 4-hour incident reporting for major disruptions
- Requires triennial threat-led penetration testing for critical entities
- Directly oversees critical third-party ICT service providers
- Harmonizes resilience standards across 27 EU member states
APPI
Act on the Protection of Personal Information
Key Features
- Extraterritorial scope for foreign businesses targeting Japan
- Pseudonymously processed data enabling consent-free analytics
- Explicit consent for sensitive data and cross-border transfers
- Data subject rights with 30-day fulfillment timelines
- PPC enforcement up to ¥100 million fines
Detailed Analysis
A comprehensive look at the specific requirements, scope, and impact of each standard.
DORA Details
What It Is
DORA (Regulation (EU) 2022/2554) is an EU regulation bolstering digital operational resilience in the financial sector against ICT disruptions like cyberattacks and system failures. It applies to 20 financial entity types and critical third-party providers (CTPPs), using a proportional, risk-based approach to harmonize rules across 27 member states.
Key Components
- **ICT Risk ManagementStrategies for identification, mitigation, and annual reviews.
- **Incident Reporting4-hour initial notifications, 72-hour updates for major incidents.
- **Resilience TestingAnnual vulnerability scans, triennial threat-led penetration testing (TLPT).
- **Third-Party OversightContractual due diligence, ESAs supervision of CTPPs. Compliance involves self-assessments and authority reporting.
Why Organizations Use It
Legally mandated to avoid fines up to 2% global turnover; mitigates systemic risks amid 74% ransomware exposure; enhances stakeholder trust and cybersecurity posture; drives investments amid rising threats like CrowdStrike outages.
Implementation Overview
Gap analyses, framework development, testing programs, vendor monitoring. Targets ~22,000 entities; proportional to size/complexity. Full application January 17, 2025, with ongoing audits and RTS adherence.
APPI Details
What It Is
The Act on the Protection of Personal Information (APPI) is Japan's cornerstone regulation enacted in 2003, with major amendments in 2022-2024. It governs handling of personal data identifying individuals, balancing privacy protection with economic data use. Scope includes all organizations processing Japanese residents' data via a risk-based, principle-driven approach emphasizing consent, security, and rights.
Key Components
- Pillars: explicit consent, purpose limitation, security controls, data subject rights (access, correction, deletion).
- Broad personal data definition covers pseudonymous info; sensitive data (medical, race) requires heightened safeguards.
- Built on transparency, minimization, accountability; enforced by Personal Information Protection Commission (PPC) with ¥100M fines.
- No fixed controls; guidelines promote pseudonymization, encryption.
Why Organizations Use It
- Mandatory compliance avoids fines, breaches, reputational harm.
- Strategic benefits: trust-building, cross-border transfers, efficiency gains (15-25% cost reduction).
- Competitive edge in Japan's data economy; enables AI innovation.
Implementation Overview
- Phased framework: gap analysis, governance, technical deployment, monitoring (12-24 months).
- Applies to all sizes/industries with data flows; extraterritorial for foreign firms targeting Japan.
- PPC audits; no certification but P Mark voluntary.
Key Differences
| Aspect | DORA | APPI |
|---|---|---|
| Scope | Digital operational resilience in finance | Personal data protection across all sectors |
| Industry | EU financial entities and CTPPs | All businesses handling Japanese residents' data |
| Nature | Mandatory EU regulation with ESAs enforcement | Mandatory Japanese law with PPC oversight |
| Testing | Annual basic tests, triennial TLPT | Security measures, audits, no mandated penetration testing |
| Penalties | Up to 2% global turnover fines | Up to ¥100M fines, criminal penalties |
Scope
Industry
Nature
Testing
Penalties
Frequently Asked Questions
Common questions about DORA and APPI
DORA FAQ
APPI FAQ
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