Mastering DORA: Ensuring operational resilience with data discovery

In today’s rapidly evolving financial landscape, ensuring operational resilience has become more critical than ever. The EU Digital Operational Resilience Act (DORA) is a landmark regulation designed to bolster the stability and security of financial entities across Europe. The regulation, introduced in January 2023 and enforceable from January 2025, seeks to protect the financial sector from disruptions and cyber-threats by establishing strict guidelines for managing and minimizing ICT risks.

One of the pivotal components of DORA is Article 8, which mandates the identification, classification and documentation of all ICT-supported business functions, and roles and responsibilities.

In this post, we explain the specifics of Article 8, highlighting the importance of comprehensive data discovery in achieving DORA compliance.

Understanding DORA Article 8: Identification

The DORA regulation calls on financial organizations and their service providers to step up and take ownership of identifying and managing their ICT (Information and Communication Technology) assets and associated risks under Article 8: Identification. This involves documenting and classifying all ICT-supported business functions and associated roles and responsibilities, and ensure that these are reviewed at least annually.

Businesses that fall within the scope of the regulation must identify all their information and ICT assets, including remote sites, network resources and hardware equipment. They must also map their critical assets, along with their configurations and interdependencies. Additionally, they need to document all processes that rely on ICT third-party service providers and map interconnections with these providers, especially those supporting critical functions.

Article 8 further requires organizations to maintain and update documented inventories of information and ICT assets, particularly after any major changes. These requirements lay the groundwork for managing ICT risks and boosting operational resilience.

Data discovery for DORA compliance

Data discovery plays a pivotal role in achieving compliance with Article 8 of the EU Digital Operational Resilience Act (DORA). It involves the systematic process of identifying, cataloging and mapping data across an organization, regardless of where it is located.

A complete inventory and classification of data assets, mandated by DORA, requires a comprehensive approach to data discovery, which further helps in identifying related ICT assets.

By leveraging purpose-built data discovery solutions, financial entities can ensure that all information assets, including those on- and off-premises as well as those in the cloud, are accurately identified and documented. This process helps not only in identifying supporting ICT assets and mapping their configurations and interdependencies, but also in maintaining up-to-date inventories that reflect any significant changes.

Moreover, data discovery can help in identifying processes that rely on third-party service providers and facilitate in mapping interconnections with them. This is crucial for understanding the full scope of ICT risks and ensuring that all critical functions are adequately supported and protected.

Put simply, comprehensive data discovery enables financial entities to meet the stringent requirements of Article 8 by providing a clear and detailed picture of their information assets and of their wider ICT landscape. This provides the baseline against which they are mandated by DORA to manage and mitigate potential risks.

Identification best practices and challenges

Comprehensive data discovery helps financial entities comply with Article 8 by providing a clear and detailed picture of their information assets and ICT landscape.

Financial entities can optimize this process with proven best practices:

• Comprehensive data mapping. This involves identifying and documenting all data sources within the organization, including remote sites, network resources and hardware equipment.
• Periodic inventory reviews. Regular updates and reviews of data inventories are crucial, particularly after any significant changes, to ensure accuracy and completeness.
• Inter-department collaboration. By fostering cooperation between IT, compliance and other departments, organizations can ensure a holistic approach to identifying data, which helps in identifying all critical assets and understanding their interdependencies.
• Regular risk assessments. Frequent risk assessments are vital for identifying potential vulnerabilities in the ICT infrastructure, allowing entities to prioritize the protection of critical assets and enhance operational resilience.

However, several common challenges can arise during the data discovery process. Data silos, where information is isolated within different departments, can make it difficult to obtain a complete picture. Further, the complexity of modern ICT environments can pose a challenge, making data discovery and mapping a daunting task. Utilizing automated tools and technologies can streamline this process and ensure comprehensive coverage.

Maintaining accurate and up-to-date inventories manually can be highly resource intensive. Establishing regular review cycles and leveraging data discovery solutions, such as Enterprise Recon, to automate inventory updates can help mitigate this issue.

Enterprise Recon automates the identification and classification of data across the organization, ensuring no critical assets are overlooked. It provides detailed mapping of data assets, essential for meeting Article 8 requirements. As a result, Enterprise Recon helps maintain accurate and up-to-date inventories, thus reducing the burden on IT and compliance teams, as well as aiding in the prioritization of critical asset protection.

Strengthening operational resilience with data discovery

Amid continued and escalating cyber-threat, DORA represents an attempt by the EU to protect its critical financial infrastructure. Article 8 of the regulation is crucial in establishing the foundation for the operational resilience of financial service organizations.

By implementing comprehensive data discovery enabling meticulous documentation of ICT assets, organizations can manage and mitigate ICT risks and demonstrably satisfy the strict requirements of DORA.

Leveraging best practices and adopting tools, such as industry-leading Enterprise Recon, can streamline compliance efforts, ensuring that financial entities are well-prepared to respond to ever-present cyber-threats and recover from cyber-incidents with minimal impact and operational disruption.

To learn more about data discovery using Enterprise Recon arrange a workshop or book a call with one of our experts today.