What It Is

Digital Operational Resilience Act (DORA), formally Regulation (EU) 2022/2554, is an EU-wide regulation establishing a harmonized framework for digital operational resilience in the financial sector. It targets ICT disruptions like cyberattacks and third-party failures, applying a risk-based, proportional approach to 20 financial entity types and critical ICT providers across 27 member states, effective January 17, 2025.

Key Components

• Four core pillars: ICT risk management, incident reporting, resilience testing, and third-party oversight.
• Specific requirements like 4/72-hour/1-month reporting timelines, annual basic tests, triennial TLPT, and ESAs supervision of CTPPs.
• Built on principles of proportionality, governance by management body, and integration with frameworks like EBA guidelines.
• Compliance via self-assessment, authority reporting, and potential fines up to 2% global turnover.

Why Organizations Use It

Mandatory for EU financial entities to mitigate systemic ICT risks amid rising threats (74% ransomware hit rate). Enhances resilience, stakeholder trust, and competitive edge through proactive strategies, reducing outage impacts like CrowdStrike 2024.

Implementation Overview

Conduct gap analyses against RTS/ITS (2024 batches), develop frameworks, test programs, and vendor contracts. Applies EU-wide to all sizes; proportionality eases for SMEs. No certification but ongoing audits, reporting; leverage tools for monitoring.

What It Is

Federal Information Security Modernization Act (FISMA) is a U.S. federal law establishing a mandatory, risk-based framework for protecting federal information and systems. Enacted in 2014, it modernizes the 2002 version, focusing on federal agencies, contractors, and third-party providers through NIST Risk Management Framework (RMF)—a 7-step process: Prepare, Categorize, Select, Implement, Assess, Authorize, Monitor.

Key Components

• NIST SP 800-53 controls (over 1,000 across 20 families) tailored by FIPS 199 impact levels (Low/Moderate/High).
• Continuous monitoring via SP 800-137, incident reporting, and POA&Ms.
• Oversight by OMB, CISA/DHS, IGs; built on CIA triad (confidentiality, integrity, availability).
• Compliance via annual metrics, maturity models (Levels 1-5), no formal certification but ATOs required.

Why Organizations Use It

• Mandatory for federal entities/contractors handling federal data; avoids penalties like debarment.
• Reduces breach risks, enables market access (e.g., FedRAMP), builds resilience and efficiency.
• Enhances trust with stakeholders, aligns cybersecurity to mission outcomes.

Implementation Overview

Phased RMF approach: governance/inventory, categorize/select controls, implement/assess/authorize, continuous monitoring. Applies to federal agencies/contractors; scales by size/portfolio. Requires audits by IGs, evidence-based reporting. (178 words)