DORA
EU regulation for digital operational resilience in finance
COPPA
U.S. federal regulation protecting children's online privacy under 13
Quick Verdict
DORA mandates ICT resilience for EU financial entities against disruptions, while COPPA requires parental consent for US child data collection online. Firms adopt DORA for regulatory compliance, COPPA to avoid FTC fines and protect kids' privacy.
DORA
Regulation (EU) 2022/2554 Digital Operational Resilience Act
Key Features
- Mandates comprehensive ICT risk management frameworks
- Enforces 4-hour major incident reporting timelines
- Requires triennial threat-led penetration testing (TLPT)
- Oversees critical third-party ICT providers (CTPPs)
- Harmonizes resilience across 20 financial entity types
COPPA
Children's Online Privacy Protection Act (COPPA)
Key Features
- Mandates verifiable parental consent for children under 13
- Broad personal information definition including persistent IDs
- Grants parents data access review and deletion rights
- Requires comprehensive privacy policies and data security
- FTC enforcement with up to $43,792 per violation 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 enhancing digital operational resilience in the financial sector against ICT risks like cyberattacks and failures. It targets 20 financial entity types and critical third-party providers (CTPPs), employing a risk-based, proportional approach across 27 member states.
Key Components
- **ICT Risk ManagementFrameworks for identification, mitigation, and annual reviews.
- **Incident Reporting4-hour initial, 72-hour intermediate, 1-month root-cause for major incidents.
- **Resilience TestingAnnual basic tests; triennial TLPT for critical entities.
- **Third-Party OversightDue diligence, monitoring, ESAs supervision via JETs. Compliance enforced with fines up to 2% global turnover.
Why Organizations Use It
Mandatory for EU financial firms to avoid penalties, reduce systemic risks (74% ransomware hit), boost resilience post-CrowdStrike, build trust, and meet stakeholder demands in cyber-threat landscape.
Implementation Overview
Conduct gap analyses, develop frameworks, implement testing/vendor strategies. Applies proportionally to all sizes/industries in EU finance; full effect January 17, 2025. Requires ongoing reporting/audits, no formal certification.
COPPA Details
What It Is
The Children's Online Privacy Protection Act (COPPA) is a U.S. federal regulation enacted in 1998, effective 2000, and enforced by the Federal Trade Commission (FTC). It safeguards children under 13 from unauthorized online personal data collection by commercial websites, apps, and services directed to kids or knowingly collecting their data. COPPA employs a parental consent-based approach, mandating verifiable consent before data handling.
Key Components
- **Verifiable Parental Consent (VPC)Methods like credit cards, video calls (11+ options, sliding scale by risk).
- **Privacy Policies and NoticesDetailed disclosures of data practices.
- **Parental RightsAccess, review, deletion, revocation.
- **Data Security and MinimizationLimit collection, secure storage.
- Broad personal information definition (names, IDs, geolocation, multimedia). Safe harbors provide audited self-regulation.
Why Organizations Use It
Mandatory for covered operators to avoid $43,792 per-violation fines (e.g., YouTube's $170M). Mitigates enforcement risks, builds parental trust, enables child-directed businesses, enhances reputation amid rising kids' online activity.
Implementation Overview
Assess child-directed scope, develop policies, integrate age gates/VPC, train staff, audit practices. Applies globally to U.S.-targeting services, all sizes; no certification but FTC/safe harbor verification.
Key Differences
| Aspect | DORA | COPPA |
|---|---|---|
| Scope | Digital operational resilience in finance | Children's online personal data privacy |
| Industry | EU financial entities and ICT providers | Operators of child-directed websites/apps |
| Nature | Mandatory EU regulation with ESAs enforcement | Mandatory US federal law via FTC |
| Testing | Annual basic tests, triennial TLPT | No mandated testing, compliance audits |
| Penalties | Up to 2% global turnover fines | $43,792 per violation |
Scope
Industry
Nature
Testing
Penalties
Frequently Asked Questions
Common questions about DORA and COPPA
DORA FAQ
COPPA FAQ
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