European Authorities Launch Discussion on DORA and Critical ICT Third-Party Providers
The European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA), and the European Securities and Markets Authority (ESMA) have jointly published a discussion paper to gather views on certain aspects of the Digital Operational Resilience Act (DORA). This comes in response to the European Commission's request for technical advice on the criteria for critical ICT third-party service providers. Stakeholders can submit their feedback until June 23, 2023. The initiative aims to improve the overall security and resilience of the EU's financial sector by addressing potential risks associated with the increasing reliance on ICT and third-party providers.
ICT third-party services: EU Advices
The implementation of DORA has several potential implications for the EU financial sector, it could lead to enhanced security and resilience, reducing the risk of cyber-attacks and other ICT-related incidents, which have been on the rise in recent years. This, in turn, could lead to increased trust in the financial sector and potentially attract more investors and customers.
The establishment of clear criteria for critical ICT third-party providers could lead to more rigorous selection processes, ensuring that financial institutions only work with providers that meet certain standards. This could result in improved service quality and more reliable ICT systems across the sector.
DORA could stimulate innovation and competition among ICT providers, as they will need to remain compliant with the new regulation. This could lead to the development of more advanced and secure technologies, ultimately benefiting the financial sector and its customers.
Lastly, DORA could serve as a model for other industries and regions, demonstrating the importance of strong ICT security and resilience measures. This could lead to similar regulations being implemented in other sectors and countries, helping to create a more secure global digital ecosystem.
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