Jailing negligent management boards? EU’s aggressive financial sector regulation goes into force

Summary: The Digital Operational Resilience Act (DORA) has come into effect in the European Union, mandating financial entities and their third-party suppliers to report significant IT incidents to national regulators. This legislation aims to enhance cybersecurity practices and accountability within the financial sector, imposing strict penalties for noncompliance, including potential criminal liability for board members. The act emphasizes the importance of personal accountability and regular reporting from IT staff to management boards to bolster organizational resilience against cyber threats and disruptions.

Threat Actor: N/A | financial entities
Victim: N/A | European Union financial sector

Keypoints :

• DORA requires financial entities and third-party suppliers to report major IT incidents to regulators.
• Noncompliance can lead to fines up to 2% of global annual turnover or €10 million, and potential criminal liability for board members.
• The regulation emphasizes personal accountability and mandates regular IT reports to management boards.