GRC (Governance, Risk, and Compliance) helps organizations manage risks, comply with regulations, and make informed decisions. DORA (Digital Operational Resilience Act) is an EU regulation aimed at strengthening digital resilience in financial institutions by managing ICT risks. Together, GRC frameworks and tools support compliance with DORA’s requirements, such as risk assessments, incident reporting, and third-party oversight, ensuring financial entities are better prepared to handle cyber threats and operational challenges.
Key Points:
- GRC: A strategy to unify governance, risk management, and compliance for better decision-making and regulatory adherence.
- DORA: EU regulation focused on ICT risk management, resilience testing, incident reporting, and third-party monitoring for financial institutions.
- Connection: GRC tools streamline DORA compliance by automating processes like risk assessments, reporting, and resilience testing.
- Deadlines: Full DORA compliance was required by January 17, 2025, with penalties for non-compliance.
| Aspect | GRC | DORA |
|---|---|---|
| Focus | Governance, risk, and compliance strategy | Digital resilience in financial sectors |
| Key Components | Risk management, compliance, governance | ICT risk management, incident reporting |
| Tools/Implementation | GRC software (e.g., MetricStream, DORApp) | Unified ICT risk frameworks and guidelines |
| Benefits | Improved decision-making, compliance | Stronger operational resilience |
DORA compliance and what it means for the financial sector
DORA Basics
While GRC frameworks focus on optimizing risk management, DORA changes the game for digital security in the EU's financial sector. With cyber threats becoming more sophisticated, DORA introduces a unified framework to manage ICT risks across financial entities.
DORA Explained
DORA applies to 20 types of financial organizations and their ICT service providers. It addresses gaps in earlier EU regulations by requiring thorough digital risk controls.
"DORA should not be seen merely as a compliance exercise. Yes, there are regulatory requirements to meet, but the real challenge lies in building resilience. The question to ask is: how can compliance with DORA effectively enhance operational resilience?"
– E. BOUET, Senior Managers at Wavestone
This regulation lays out clear implementation guidelines to ensure better digital resilience.
DORA Requirements
DORA is built on five key pillars that financial institutions must focus on:
| Pillar | Key Requirements | Implementation Focus |
|---|---|---|
| ICT Risk Management | Establish a robust framework | Ongoing risk assessment and monitoring |
| Incident Reporting | Standardized processes | Clear classification and timely notifications |
| Digital Resilience Testing | Routine system checks | Vulnerability and penetration testing |
| Information Sharing | Exchange threat intelligence | Foster collaboration across industries |
| Third-Party Risk Management | Monitor providers continuously | Ensure contract compliance and oversight |
Failing to comply with these requirements comes with hefty penalties:
- Organizations: Fines up to 2% of total annual global turnover.
- Executives: Personal penalties up to €1,000,000.
- Third-party ICT providers: Fines up to €5,000,000 for organizations and up to €500,000 for individuals.
DORA Deadlines
- January 17, 2025: Deadline for full compliance.
- April 30, 2025: National authorities must submit information.
A recent survey revealed that only 29% of financial entities have created implementation roadmaps.
"DORA promotes a unified approach to IT risk management by breaking down silos between various functions, such as cybersecurity, business continuity, and procurement."
– D. LACHIVER, Senior Managers at Wavestone
Understanding these deadlines is critical for aligning GRC solutions to meet DORA's strict standards.
GRC and DORA Connection
GRC Support for DORA
GRC frameworks play a key role in meeting DORA compliance by offering structured approaches to risk management and regulatory adherence. For instance, MetricStream's CyberGRC product, implemented in January 2025, showcased how GRC tools can address DORA's main requirements through features like automated risk assessments, incident reporting, and regulatory tracking.
The link between GRC and DORA becomes clear in several important areas:
| GRC Component | DORA Support | Implementation Benefits |
|---|---|---|
| Risk Management | Automated assessments and monitoring | Real-time risk visibility and control |
| Incident Handling | Standardized classification and reporting | Faster response and compliance |
| Third-Party Oversight | Continuous provider monitoring | Stronger supply chain resilience |
| Documentation | Centralized record-keeping | Easier audit processes |
Regulatory guidelines emphasize that financial entities must integrate ICT third-party risk management into their broader ICT risk frameworks, particularly for critical or key functions. These examples highlight how GRC supports the foundation of DORA compliance.
Combining GRC with DORA
Integrated GRC solutions simplify the path to DORA compliance. For example, Decision Focus, a cloud-based GRC platform, helps organizations address DORA's complex requirements. Their system combines:
- Enterprise Risk Management
- Operational Resilience
- Third-Party Risk Management
- Information Security Management
This integration breaks down silos and ensures secure data sharing across functions.
Beyond compliance, DORA pushes organizations to improve third-party risk management and operational resilience, encouraging the development of stronger risk management systems.
To better align with DORA, financial institutions can:
- Assess risks across critical systems
- Automate incident reporting and monitoring
- Anonymize sensitive information
- Maintain thorough audit trails
- Perform resilience testing
The collaboration between GRC and DORA offers a comprehensive approach to digital operational resilience. This not only helps organizations meet regulatory demands but also strengthens their overall risk management practices.
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GRC Tools for DORA
Key GRC Features
Modern GRC tools simplify compliance with DORA by addressing ICT risks, incident reporting, third-party provider oversight, and resilience testing. Here are some of the most important features:
- Risk Management: Automated risk assessments, real-time tracking, and built-in controls
- Incident Handling: Tools for classifying incidents, automated reporting, and root cause analysis
- Third-Party Management: Features for tracking provider registration, monitoring contracts, and evaluating performance
- Resilience Testing: Scenario planning, automated tests, and result tracking
When choosing a tool, focus on how well it integrates with your systems, its ability to be tailored to your needs, and the level of automation it provides.
Choosing GRC Software
When evaluating GRC software, consider these three factors:
-
Integration Capabilities
The software should connect seamlessly with your existing systems, offering a centralized view of risk data. This reduces compliance burdens by automating key processes. -
Customization Options
Look for platforms that allow you to adjust frameworks and reports to meet evolving DORA requirements. -
Automation Features
Automated tools for risk assessments and incident reporting help ensure compliance with regulatory timelines.
One example of a solution that meets these criteria is DORApp.
DORApp Overview
DORApp is a cloud-based SaaS platform designed specifically for DORA compliance. Its standout features include:
- Automated XBRL Reporting: Automatically generates reports that meet DORA standards
- Intelligent Data Management: Uses public sources like LEI to enrich data
- Comprehensive Security: Includes multi-factor authentication, IP filtering, and geo-fencing
The Enterprise plan, priced at $217 per user per month, provides access to all compliance tools along with dedicated support. DORApp helps organizations strengthen their resilience while staying aligned with DORA’s regulatory framework.
GRC-DORA Success Steps
Building on the connection between GRC and DORA, here’s how financial institutions can manage risks and oversee third-party providers effectively.
Risk Assessment Steps
To meet DORA requirements, financial institutions need a structured way to assess ICT risks. The 2023 Mondelez breach highlights just how critical this is.
Here’s a step-by-step approach to ICT risk assessment:
-
Initial Risk Identification
Map out your ICT infrastructure and pinpoint vulnerabilities using GRC tools. -
Impact Analysis
Assess the potential effects of each identified threat. -
Risk Prioritization
Focus resources on high-impact risks while keeping an eye on smaller vulnerabilities.
"If you don't invest in risk management, it doesn't matter what business you're in, it's a risky business." – Gary Cohn, Director of the U.S National Economic Council
Third-Party Management
Under DORA, managing ICT service providers requires a well-organized strategy. Financial institutions must keep a centralized record of all third-party ICT arrangements and ensure providers comply with security standards.
Key actions include:
- Maintaining a centralized database of ICT service providers.
- Using automated tools to review contracts and track compliance.
- Defining clear audit rights and responsibilities.
- Regularly monitoring provider performance against agreed service levels.
- Preparing detailed exit strategies for critical ICT services.
- Assessing provider substitutability and concentration risks.
- Keeping tabs on subcontractor arrangements, especially those involving non-EU entities.
- Conducting periodic reviews of performance and compliance.
These steps help keep third-party risks manageable under DORA’s framework.
Improving Digital Resilience
Strengthening digital resilience takes ongoing work. Focus on these areas:
-
Automated Monitoring
Leverage GRC tools for real-time monitoring to detect and address issues quickly. -
Response Planning
Keep incident response plans updated, with clear roles and steps for handling ICT disruptions. -
Testing and Validation
Perform regular resilience tests to check your preparedness. Simulate scenarios like cyberattacks, system failures, third-party disruptions, and data breaches.
These actions boost your organization’s digital defenses under DORA.
Conclusion
GRC and DORA integration provides financial institutions with multiple advantages, as outlined earlier.
Key Benefits of GRC-DORA Integration
Using GRC platforms to meet DORA compliance needs offers clear advantages. These tools strengthen operational resilience by combining risk management and compliance in a single system.
Here are three standout benefits:
- Stronger Risk Management: GRC platforms centralize risk data and automate compliance workflows, helping financial institutions combat evolving cyber threats. Since 2004, nearly 20% of cyber threats have targeted financial institutions, highlighting the importance of effective risk management.
-
Improved Operational Efficiency: By breaking down silos and enabling real-time monitoring, GRC tools ensure faster incident responses and smoother compliance processes. Aron Lange from Sprinto explains:
"GRC tools interconnect key elements, and without integrated systems, risks escalate."
-
Continuous Compliance: Automated evidence collection and detailed audit trails make it easier to maintain compliance with DORA requirements. Industry experts note:
"Controls with automated evidence collection and monitoring will always be more effective than those left to gather dust until auditors arrive."
Platforms like DORApp showcase how automation and streamlined risk management contribute to these outcomes.
Ultimately, successful GRC implementation relies on having the right tools and strategies. This approach not only ensures compliance but also strengthens resilience, optimizes operations, and fosters customer confidence. For specific examples and case studies, revisit earlier sections.
