What It Is

DORA, formally Regulation (EU) 2022/2554, is an EU-wide regulation enhancing digital operational resilience for the financial sector against ICT disruptions like cyberattacks and third-party failures. Applicable from January 17, 2025, it covers 20 financial entity types and critical ICT providers, using a risk-based, proportional approach.

Key Components

• **ICT Risk ManagementFrameworks for identification, mitigation, and annual reviews overseen by management.
• **Incident ReportingClassification and notifications (4 hours initial, 72 hours intermediate, 1-month root cause).
• **Resilience TestingAnnual basic tests; triennial TLPT for critical entities.
• **Third-Party OversightDue diligence, monitoring, and ESAs supervision of CTPPs. Compliance enforced via penalties up to 2% global turnover; no formal certification.

Why Organizations Use It

Legally mandated for EU financial entities (~22,000) to mitigate systemic risks, ensure business continuity, avoid fines, build stakeholder trust, and harmonize rules across 27 states amid rising threats like ransomware (74% affected).

Implementation Overview

Gap analyses, framework development, tool adoption, testing programs, and reporting setup. Proportional to size/complexity; targets large banks to fintechs. Ongoing ESAs oversight; prepare via RTS/ITS batches for 2025 deadline.

What It Is

PIPEDA (Personal Information Protection and Electronic Documents Act) is Canada's federal privacy regulation governing private-sector organizations in commercial activities. Enacted in 2000, it protects personal information—any data about identifiable individuals—via national standards. Its principles-based approach uses 10 Fair Information Principles in Schedule 1, derived from CSA Model Code, balancing business needs with privacy rights.

Key Components

• **10 Fair Information PrinciplesAccountability, identifying purposes, consent, limiting collection/use/retention, accuracy, safeguards, openness, individual access, challenging compliance.
• Flexible framework, no fixed controls; emphasizes data minimization, safeguards, and rights.
• Overseen by Office of the Privacy Commissioner (OPC); no formal certification, but audits and court enforcement.

Why Organizations Use It

• Mandatory compliance avoids OPC investigations, fines up to CAD $100,000, reputational harm.
• Builds consumer trust, mitigates breach costs, enables competitive advantage in digital economy.
• Enhances risk management, operational efficiency via governance and training.

Implementation Overview

• Phased: gap analysis, appoint privacy officer, policies/PIAs, controls/training, audits.
• Applies to commercial activities, cross-border/FWUBs; exemptions for some provincial laws.
• Self-managed with OPC tools; 6-12 months typical for mid-size orgs.