Independent thinking. Informed defence.

CISO Times

Intelligence for the people behind the defence.

The CISO Decision Brief

Article 1Subject matter

1. In order to achieve a high common level of digital operational resilience, this Regulation lays down uniform requirements concerning the security of network and information systems supporting the business processes of financial entities as follows:

(a) requirements applicable to financial entities in relation to:

(i) information and communication technology (ICT) risk management;

(ii) reporting of major ICT-related incidents and notifying, on a voluntary basis, significant cyber threats to the competent authorities;

(iii) reporting of major operational or security payment-related incidents to the competent authorities by financial entities referred to in Article 2(1), points (a) to (d);

(iv) digital operational resilience testing;

(v) information and intelligence sharing in relation to cyber threats and vulnerabilities;

(vi) measures for the sound management of ICT third-party risk;

(b) requirements in relation to the contractual arrangements concluded between ICT third-party service providers and financial entities;

(c) rules for the establishment and conduct of the Oversight Framework for critical ICT third-party service providers when providing services to financial entities;

(d) rules on cooperation among competent authorities, and rules on supervision and enforcement by competent authorities in relation to all matters covered by this Regulation.

2. In relation to financial entities identified as essential or important entities pursuant to national rules transposing Article 3 of Directive (EU) 2022/2555, this Regulation shall be considered a sector-specific Union legal act for the purposes of Article 4 of that Directive.

3. This Regulation is without prejudice to the responsibility of Member States’ regarding essential State functions concerning public security, defence and national security in accordance with Union law.

DORA, the European Union regulation on digital operational resilience, Article 1

The Regulation covers six subjects for financial entities: ICT risk management; reporting of major ICT-related incidents, with voluntary notification of significant cyber threats; reporting of major payment-related operational or security incidents, which applies only to credit institutions, payment institutions, account information service providers and electronic money institutions; digital operational resilience testing; information and intelligence sharing on cyber threats and vulnerabilities; and management of ICT third-party risk. Information sharing is a subject in its own right, not a part of third-party risk. Beyond the entities’ own duties, it sets what contracts with ICT third-party service providers must contain, an Oversight Framework for critical providers, and rules on cooperation, supervision and enforcement.

Paragraph 2 matters most for anyone also in scope of NIS2. For a financial entity identified as essential or important under national rules transposing NIS2, DORA is a sector-specific Union act for the purposes of Article 4 of NIS2. Under that Article, the relevant NIS2 provisions, including those on supervision and enforcement, do not apply to such entities where the sector-specific requirements on risk-management measures or on notifying significant incidents are at least equivalent in effect. Recital 28 of NIS2 adds that DORA’s provisions on ICT risk management, incident management, testing, information sharing and third-party risk apply instead of those of NIS2, so Member States should not apply NIS2’s risk-management, reporting, supervision and enforcement provisions to financial entities covered by DORA. Paragraph 3 leaves Member States’ responsibility for essential State functions, such as public security, defence and national security, untouched.

What is in the packs for this

Each one helps with this requirement.

Text: Regulation (EU) 2022/2554, as published in the Official Journal of the European Union, from EUR-Lex. Only the Official Journal text is authentic.