Key points

• DORA (Digital Operational Resilience Act) aims to improve digital resilience and security in the financial sector.
• AI tools can play a major role in supporting DORA compliance, especially by boosting risk management, incident response, and contract analysis.
• Integrating AI for DORA brings unique opportunities but also requires careful alignment with specific compliance requirements.
• Metomic offers tailored, efficient solutions to simplify DORA compliance, helping organisations manage risks and third-party oversight effectively.

With cyber threats and operational risks growing more sophisticated, financial organisations are under increasing pressure to keep their data and operations secure.

That’s where the Digital Operational Resilience Act (DORA) steps in.

DORA provides a comprehensive regulatory framework across the EU aimed at making sure that financial institutions are able to continue protecting sensitive data, despite disruptions from cyber threats and operational risks.

To meet DORA’s standards, organisations are finding that Artificial Intelligence (AI) can be a powerful asset, from improving risk management to streamlining incident response.

Metomic can support this by combining AI-driven data discovery, risk management, and third-party monitoring, helping organisations align with DORA requirements and maintain digital resilience.

What is DORA?

The Digital Operational Resilience Act (DORA) is the EU’s latest regulation designed to enhance digital resilience within the financial sector.

Introduced as part of the Digital Finance Package, DORA’s main goal is to ensure that financial organisations can keep critical services running smoothly, even when faced with unexpected cyber threats or operational disruptions.

To achieve this, DORA outlines a clear set of requirements for financial institutions to meet. These include:

• Risk management: Financial organisations must proactively assess and manage potential digital risks to prevent disruptions.
• IT security: DORA specifies strict cybersecurity measures that organisations must implement to protect sensitive data and IT systems.
• Incident reporting: Firms are required to report significant cyber incidents quickly and accurately, allowing for faster response and regulatory oversight.
• Third-party risk management: DORA also focuses on external partnerships, requiring that any critical third-party service providers meet the same DORA resilience standards.
• Business continuity planning: Organisations need to develop and test continuity plans to remain operational even when systems are impacted.

The urgency for these measures is emphasised by the scale of cyber incidents. In 2023 alone, the financial industry reported 3,348 cyber incidents globally—a rise of 83% compared to the previous year. Clearly, DORA’s framework is vital for not only maintaining operational stability, but also for preserving the trust of customers who expect their data to be safeguarded under all circumstances.

How can artificial intelligence be used to enhance DORA compliance?

Threats are constantly evolving, and this has only been accelerated with AI. Fortunately, AI is just as helpful for organisations that want to achieve DORA compliance.

Here’s how AI bolsters the essential areas of DORA:

Risk assessment

• AI's role in risk management: AI tools help pinpoint, evaluate, and categorise risks with precision. By analysing massive datasets and detecting subtle patterns, AI can reveal potential risks that might otherwise go unnoticed, offering a smarter approach to digital risk management.
• AI and predictive analytics: AI doesn’t just evaluate current risks; it forecasts them, allowing organisations to stay ahead of potential threats. By leveraging predictive analytics, AI tools can anticipate emerging risks and assess their possible impacts. For instance, AI powered credit risk models demonstrate a 20% increase in predictive accuracy compared to traditional methods, reducing surprises and strengthening preparedness.
• Market risk management enhancement: AI excels at identifying anomalies in market behaviour, making it especially useful in market risk management. Tools powered by AI can improve the speed and precision of anomaly detection by as much as 30%, helping organisations spot unusual patterns early and respond faster.

Threat detection

• Proactive threat identification: AI’s ability to detect unusual behaviour patterns allows it to act as an early warning system, identifying potential threats before they escalate. By flagging anomalies across the network, AI gives financial institutions a head start in neutralising risks.
• Real-time monitoring: With AI’s continuous monitoring, organisations gain around-the-clock protection against cyber threats. AI driven threat intelligence solutions can reduce detection times by as much as 90%, enabling organisations to identify and contain potential breaches at record speed.

Incident response

• Automated response protocols: When incidents occur, AI can trigger automated responses, executing predefined containment measures instantly. This rapid intervention minimises damage and supports compliance with DORA’s incident reporting requirements.
• Supporting continuous learning: AI systems improve over time, learning from each incident to refine response protocols. Machine learning-driven responses help teams become more adaptive and efficient in tackling new threats. Some studies suggest that using AI can speed up recovery times by as much as 60% compared to traditional methods, keeping disruptions to a minimum and ensuring faster recovery.

Through these capabilities, AI not only strengthens compliance with DORA but also empowers financial organisations to take a more proactive, resilient stance against today’s digital threats.

How can organisations ensure DORA compliance when using AI?

Navigating the compliance landscape can be challenging, especially when integrating AI into your operations. To ensure DORA compliance while leveraging AI, organisations can take several key steps:

Establishing a compliance-focused AI framework

• ‍Building AI-driven workflows that align with DORA
  • ‍Start by developing AI processes that clearly support your digital resilience goals. This means creating workflows that not only enhance efficiency but also meet the requirements laid out by DORA.
  • Consider mapping out your existing processes to identify areas where AI can improve compliance without compromising data security. ‍
• Incorporating governance and transparency
  • ‍Transparency is crucial when implementing AI solutions. It’s essential to document AI decision-making processes and establish clear governance structures.
  • This includes conducting regular audits to assess how AI systems are functioning and ensuring they remain compliant with DORA.
  • By maintaining a transparent approach, you can build trust with stakeholders and demonstrate your commitment to regulatory requirements.

Managing third-party risks with AI

• ‍Assessing vendor compliance
  • ‍Third-party risks can significantly impact your compliance efforts. AI can play a vital role in evaluating and managing these risks.
  • By automating the assessment of vendor compliance, organisations can ensure that third-party providers are meeting DORA requirements.
  • This not only streamlines the compliance process but also helps safeguard your organisation against potential vulnerabilities.‍
• Ongoing monitoring
  • ‍Continuous risk assessment is essential when it comes to third-party providers. Using AI for ongoing monitoring allows you to keep a close eye on the compliance status of your vendors.
  • This proactive approach helps you identify potential issues before they escalate, ensuring that your organisation remains compliant and resilient.
  • Research indicates that a significant portion of compliance challenges stem from third-party relationships, highlighting the importance of comprehensive monitoring and assessment mechanisms.

How Metomic supports DORA compliance

Metomic is a valuable partner in achieving DORA compliance, especially when integrating AI processes into your organisation.

Here’s how Metomic supports your compliance journey:

• Aligning AI with DORA: With Metomic, you can build workflows that meet DORA requirements, ensuring your AI initiatives are compliant and effective.
• Enhanced monitoring capabilities: Our platform offers real-time tracking of compliance statuses, helping you swiftly identify potential risks and enabling quicker decision-making.
• Easy integration: Metomic can seamlessly connect with your existing systems to enhance compliance efforts without disruption.
• Continuous updates: Keeps your compliance processes current with ongoing regulatory changes, helping you stay ahead of DORA requirements.
• Specialised support: We can provide you with tailored assistance for financial services, addressing industry-specific challenges.

To see how Metomic can streamline your path to DORA compliance, get in touch with our team directly or download our complete guide to DORA compliance.