Governance and organisation

Governance and organisation

DORA (Regulation (EU) 2022/2554) introduces a new governance paradigm for ICT risk management that differs materially from the BAIT/VAIT architecture. The BaFin guidance highlights three core areas of change:


DORA requires a new strategy for digital operational readiness (DOR Strategy)

Reference: page 8

Key points

  • DORA replaces the IT strategy known from BAIT/VAIT with a Digital Operational Resilience Strategy (DOR Strategy).
  • The DOR Strategy is narrower in some areas (no full IT strategy), but also stricter where it relates to ICT risks.
  • New scope:
    • ICT risk management as a strategic pillar
    • ICT third-party risk strategy
    • Optional multi-vendor strategy (Art. 6(9) DORA)

Differences vs. BAIT/VAIT

  • BAIT/VAIT require a broad functional IT strategy (architecture, resourcing, outsourcing planning, etc.).
  • DORA’s DOR Strategy has no explicit requirement for:
    • IT business continuity planning (though BCM is covered elsewhere in DORA)
    • IT security implementation according to defined standards
    • Communication obligations for the IT strategy

Operational implication

Financial entities will have to maintain two strategy layers:

  1. DOR Strategy (mandatory under DORA – ICT resilience-centric)
  2. IT Strategy (still required by general governance or business needs)

ICT-specific internal governance and control framework

Reference: page 9

DORA introduces a fully-fledged ICT governance framework focusing on the “effective and prudent management of ICT risk”.

Key elements

  • ICT risk management is now part of overall risk management (Art. 6(1) DORA).
  • Management body retains ultimate responsibility (similar to BAIT/VAIT).
  • Three Lines of Defence explicitly required (Art. 6(4) DORA).
  • Mandatory ICT risk control function (new):
    • Manages and oversees ICT risks
    • Must be segregated, independent
    • Goes beyond the traditional Information Security Officer (ISO)
  • Monitoring function for ICT third-party contracts (Art. 5(3) DORA)
    • New role comparable to a central outsourcing manager
    • Not present in BAIT/VAIT in this explicit form

ICT security policies

DORA (RTS RMF Art. 2(2)) prescribes a set of mandatory ICT security policies, which BAIT/VAIT do not explicitly require as formally approved policies.

Protocol for technological change

  • DORA expects ICT governance to consider evolving technology and threat levels explicitly (Recital 48, RTS RMF Art. 2(2)).

Significant expansion of the management body’s tasks

Reference: pages 9–10

This is one of the most significant shifts introduced by DORA. Compared to BAIT/VAIT, DORA requires management boards to:

a) Possess ICT risk competence

  • Members must have sufficient knowledge & skills regarding ICT risks (Art. 5(4) DORA).
  • They must maintain and update this expertise through regular training.

b) Approve and oversee all ICT-relevant policies

Including:

  • Information security policy
  • ICT business continuity policy
  • ICT third-party risk management policy
  • ICT security policies under RTS RMF

BAIT/VAIT do not require board-level approval for detailed ICT security policies.

c) Define clear responsibilities for all ICT functions

(Art. 5(2)(c) DORA)

d) Ensure appropriate resourcing

  • Sufficient staffing, skills, budgeting for ICT risk management
    (Art. 5(2)(g) DORA).

e) Approve internal ICT audit plans

And any significant changes.

f) Oversee implementation of ICT response & recovery capabilities

BCM obligations become board-level responsibilities.

Source: BaFin, Supervisory statement: Guidance notes on the implementation of DORA for ICT risk management and ICT third-party risk management

https://www.bafin.de/SharedDocs/Downloads/EN/Anlage/dl_2024_07_08_Aufsichtsmitteilung_Umsetzungshinweise_DORA_en.html