Strengthening SAP Security in the Age of DORA: A Guide for Financial Entities
In an era where digital transformation shapes every facet of the financial sector, the importance of operational resilience cannot be overstated. With the introduction of the Digital Operational Resilience Act (DORA) by the European Union, a new standard is being set to ensure that financial entities, including banks, insurance companies, and investment firms, can withstand severe operational disruptions. As this regulation comes into force, entities covered under DORA are now tasked with fortifying their IT security postures. This is where Xiting’s expertise becomes pivotal.
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Understanding DORA: A New Era of Operational Resilience
The Digital Operational Resilience Act (DORA) is an EU regulation designed to strengthen the IT security frameworks of financial entities. Effective from January 16, 2023, and applicable starting January 17, 2025, DORA encompasses a broad scope of operations, ensuring that the financial sector’s reliance on technology becomes a strength rather than a vulnerability.
Key Aspects of DORA
- ICT Risk Management: Establishing robust principles and requirements for ICT risk management frameworks.
- Third-Party Risk Management: Monitoring and managing the risks associated with ICT third-party service providers.
- Digital Operational Resilience Testing: Mandating both basic and advanced testing methodologies to assess resilience.
- ICT-Related Incident Management: Setting forth general requirements for incident reporting to competent authorities.
- Information Sharing: Facilitating the exchange of information on cyber threats.
- Oversight of Critical Providers: Implementing an oversight framework for critical ICT third-party providers.
The regulation underscores the necessity for harmonized rules relating to operational resilience, affecting 20 different types of financial entities and ICT service providers.
Why DORA and Why Now?
The financial sector’s growing dependency on technology and external tech companies introduces a spectrum of cyber risks. Unchecked, these risks can disrupt financial services across borders, impacting the broader economy. DORA aims to mitigate these vulnerabilities, ensuring the sector’s digital operational resilience.
Xiting’s Role in Empowering Financial Entities
As the timeline for DORA’s implementation progresses, financial entities must revisit and reinforce their cybersecurity strategies, especially in complex environments like SAP. Xiting offers comprehensive solutions tailored to enhance the security and compliance of SAP landscapes, perfectly aligning with DORA’s mandates.
How Xiting Can Help
- Risk Assessment and Management: Xiting’s expertise in SAP environments enables a thorough evaluation, audit and management of ICT risks, ensuring compliance with DORA’s rigorous standards.
- Advanced Testing Procedures: Leveraging advanced testing methodologies, Xiting helps identify vulnerabilities within SAP systems and SAP’s cloud services, facilitating resilience against operational disruptions.
- Incident Management and Reporting: With tools and strategies for efficient incident management, Xiting streamlines the process of reporting major ICT-related incidents, aligning with DORA’s requirements.
Enhancing Cybersecurity and Cloud Security in Compliance with DORA
In the evolving regulatory landscape shaped by DORA (and other regulations like GDPR), maintaining robust cybersecurity and cloud security practices is paramount for financial entities. DORA mandates a proactive stance on management’s part to ensure effective protection against ICT disruptions and cyber threats, advocating for a comprehensive ICT risk management framework. To this end, Xiting offers invaluable support, enabling financial institutions to adopt and implement best practices in cybersecurity alongside deploying advanced technologies. Our tools integrate with any Security Information and Event Management (SIEM) tools, and we provide guidance and insight to Cloud security posture management (CSPM) practices and technologies specifically for SAP applications. These tools and methodologies are essential for detecting, preventing, and responding to misconfigurations and threats in the cloud environment, thus ensuring compliance with DORA’s rigorous standards. Xiting’s approach not only facilitates adherence to the regulation but also significantly enhances the operational resilience of financial systems against a backdrop of digital threats.
Navigating the Timeline
As the European Supervisory Authorities prepare a suite of policy products to enable DORA’s application, entities must stay ahead of the curve in understanding and implementing the required changes. From public consultations to the eventual start of oversight activities, staying informed and prepared is key.
Conclusion
The Digital Operational Resilience Act (DORA) marks a significant step forward in ensuring the financial sector’s resilience against ICT threats. With Xiting’s specialized services, financial entities can navigate the complexities of SAP security, ensuring compliance with DORA while fortifying their operational resilience. As we move towards a digitally resilient future, the collaboration between regulatory frameworks and cybersecurity expertise has never been more crucial.
