What is the impact of the Digital Operational Resilience Act (DORA) on financial institutions?

The Digital Operational Resilience Act (DORA) is a legislative proposal by the European Commission aimed at enhancing the operational resilience of the financial sector in the European Union. If adopted, DORA would establish a comprehensive framework for digital operational resilience and oversight. Financial institutions would need to comply with stricter requirements on IT and security risk management, incident reporting, outsourcing, and other key areas related to their operational resilience. This could result in increased compliance burdens for financial institutions as they adapt their processes and systems to meet the proposed standards under DORA.