Standards Comparison

    DORA

    Mandatory
    2023

    EU regulation for digital operational resilience in financial sector

    VS

    REACH

    Mandatory
    2007

    EU regulation for chemical registration, evaluation, authorisation and restriction.

    Quick Verdict

    DORA mandates ICT resilience for EU finance against cyber threats via testing and oversight. REACH requires chemical safety data from industry for health protection. Financial firms adopt DORA for compliance; manufacturers use REACH to ensure EU market access.

    Digital Operational Resilience

    DORA

    Regulation (EU) 2022/2554 Digital Operational Resilience Act

    Cost
    €€€€
    Complexity
    High
    Implementation Time
    18-24 months

    Key Features

    • Mandates comprehensive ICT risk management frameworks overseen by management
    • Requires 4-hour incident reporting for major disruptions
    • Imposes triennial threat-led penetration testing for critical entities
    • Establishes oversight of critical third-party ICT providers
    • Harmonizes resilience standards across 27 EU member states
    Chemical Safety

    REACH

    Regulation (EC) No 1907/2006 (REACH)

    Cost
    €€€
    Complexity
    Medium
    Implementation Time
    18-24 months

    Key Features

    • Industry-led registration above 1 tonne/year per entity
    • SVHC Candidate List triggers communication obligations
    • Authorisation regime for very high concern substances
    • Annex XVII restrictions with phased implementation
    • Supply chain SDS and exposure scenario requirements

    Detailed Analysis

    A comprehensive look at the specific requirements, scope, and impact of each standard.

    DORA Details

    What It Is

    Digital Operational Resilience Act (DORA), Regulation (EU) 2022/2554, is an EU regulation harmonizing ICT risk management for financial entities. It bolsters resilience against ICT disruptions like cyberattacks, applying to 20 financial types and critical third-party providers across 27 member states. Employs a risk-based, proportional approach with management oversight.

    Key Components

    • **ICT Risk FrameworksStrategies for identification, mitigation, annual reviews.
    • **Incident Reporting4-hour initial, 72-hour updates, monthly root-cause analysis.
    • **Resilience TestingAnnual basic tests, triennial TLPT for critical functions.
    • **Third-Party OversightDue diligence, monitoring, ESA supervision of CTPPs. No certification; compliance via authority audits and RTS/ITS standards.

    Why Organizations Use It

    Mandatory for ~22,000 entities to avoid 2% turnover fines. Mitigates systemic risks (74% ransomware hit), enhances cyber defenses, builds trust, spurs €10-15B investments in tools like segmentation.

    Implementation Overview

    Gap analyses, framework development, testing programs, vendor contracts. Proportional to size/complexity; full application January 17, 2025. Ongoing reporting, remediation for authorities.

    REACH Details

    What It Is

    REACH (Regulation (EC) No 1907/2006) is a directly applicable EU regulation governing the Registration, Evaluation, Authorisation and Restriction of Chemicals. Its primary purpose is to ensure a high level of protection for human health and the environment from chemical risks by shifting responsibility to industry for generating and managing safety data. It adopts a risk-based approach across the chemical lifecycle.

    Key Components

    • Four pillars: Registration (>1 tonne/year), Evaluation (dossier checks, substance scrutiny), Authorisation (SVHCs on Annex XIV), Restriction (Annex XVII bans/limits).
    • 17 technical Annexes detailing data requirements, SDS rules, lists.
    • Built on industry-led data submission via ECHA databases; no formal certification, but continuous compliance.

    Why Organizations Use It

    • Legal mandate for EU market access; avoids fines, seizures.
    • Manages supply chain risks, enables substitution.
    • Builds trust via transparency (Article 33 SVHC disclosure).
    • Drives innovation in safer chemicals.

    Implementation Overview

    Phased: inventory substances, prepare dossiers/CSRs, monitor lists, integrate SDS communication. Applies to manufacturers/importers/downstream users in chemicals/manufacturing; EU/EEA scope. National enforcement, self-audits essential. (178 words)

    Key Differences

    Scope

    DORA
    Digital operational resilience against ICT disruptions
    REACH
    Chemical registration, evaluation, authorisation, restriction

    Industry

    DORA
    EU financial entities and critical ICT providers
    REACH
    Chemicals, manufacturing, importers across sectors

    Nature

    DORA
    Mandatory EU regulation with ESAs enforcement
    REACH
    Mandatory EU regulation with ECHA coordination

    Testing

    DORA
    Annual basic tests, triennial TLPT for critical
    REACH
    Dossier evaluation, compliance checks, substance evaluation

    Penalties

    DORA
    Up to 2% global turnover fines
    REACH
    Effective, proportionate, dissuasive national penalties

    Frequently Asked Questions

    Common questions about DORA and REACH

    DORA FAQ

    REACH FAQ

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