Top 5 Challenges Financial Entities Face with DORA Compliance and How to Overcome Them

The Digital Operational Resilience Act (DORA) sets strict requirements for financial institutions across the EU. It aims to strengthen cyber resilience, risk management, and third-party oversight so firms can withstand operational disruptions.

However, many organizations struggle to meet these requirements, especially as the compliance deadline nears. Key areas such as ICT risk management, supplier governance, and incident reporting require well-structured processes and continuous oversight.

“The first concern for a CIO should be to determine whether their organization is impacted and how compliance has been delegated,” says John Crossno, director of product management at Rocket Software.

Without the right tools, compliance teams can spend months manually sorting through contracts, reviewing security protocols, and attempting to identify gaps. AI-driven solutions like Konfer Clear™ simplify the process and deliver rapid compliance assessments without requiring extensive internal resources or external consultants.

What Are the Biggest ICT Risk Management Challenges Under DORA?

DORA places heavy emphasis on ICT risk management, which requires financial entities to assess, mitigate, and continuously monitor cyber threats. However, organizations often struggle with:

1. Fragmented Risk Assessments: Many firms lack centralized frameworks for evaluating ICT risks across departments.

2. Lack of Real-Time Visibility: Identifying vulnerabilities before they escalate remains a challenge.

3. Regulatory Complexity: DORA requires proactive measures, but financial institutions often operate reactively.

4. Insufficient Security Testing: Many companies do not perform regular penetration tests or cyber resilience simulations, which leaves them vulnerable to unidentified risks.

5. Resource Constraints: Compliance teams often lack specialized personnel to implement and oversee comprehensive ICT risk strategies.

How to Fix It

Konfer Clear™ automates risk assessments by analyzing internal security policies, audit logs, and regulatory documents. It compares existing processes against DORA’s guidelines, identifies gaps, and delivers specific action points to improve compliance.

How Can Financial Institutions Ensure Third-Party Compliance?

DORA enforces strict oversight of third-party service providers, requiring financial institutions to ensure vendors meet operational resilience standards. The challenge lies in:

• Lack of Contract Visibility: Many organizations work with multiple vendors, which makes it difficult to track whether agreements align with DORA’s requirements.

• Inconsistent Risk Assessments: Vendor risk assessments are often manual and take too long, which results in outdated evaluations.

• Compliance Liability: Financial institutions remain accountable for third-party failures, even if an external provider is responsible.

How to Fix It

Konfer Clear™ reviews contracts, security policies, and service-level agreements (SLAs) to assess vendor compliance with DORA. It flags non-compliant clauses, which lowers the risk of regulatory penalties.

When Should Companies Report ICT Incidents Under DORA?

One of DORA’s strictest requirements involves incident reporting. Organizations must detect, log, and report cybersecurity events within specified timeframes. However, many firms struggle with:

• Unclear Reporting Timelines: The regulation mandates immediate response, but there is uncertainty about what qualifies as a “major ICT-related incident.”

• Inconsistent Documentation: Incident reports often lack standardized formatting, which makes it difficult for regulators to assess compliance.

• Delayed Response Times: Companies fail to contain threats efficiently without structured workflows.

How to Fix It

Konfer Clear™ helps compliance teams structure incident reports based on DORA’s reporting framework. It cross-references incident response logs with EU regulatory standards, ensuring all required information is captured and submitted on time.

Where Do Companies Struggle with Security Testing and Compliance Audits?

DORA mandates regular security testing, which requires firms to run penetration tests, vulnerability assessments, and operational resilience simulations. However, challenges include:

• Limited Internal Resources: Many organizations lack specialized security teams to conduct ongoing assessments.

• Compliance Blind Spots: Manual reviews often miss critical gaps in ICT controls.

• Difficulty Scaling: Testing requirements expand as financial entities onboard new technologies or vendors.

How to Fix It

Konfer Clear™ automates gap analysis, analyzes internal security policies, and compares them to DORA’s standards. It provides detailed reports that pinpoint areas for improvement. This helps teams complete audit preparation faster and with great accuracy.

How to Simplify DORA Compliance with Konfer Clear™

“This is no small task, particularly for financial entities with complex, multi-cloud environments. Implementing monitoring and observability solutions will provide visibility and real-time insights into system performance, detect anomalies and support identification of vulnerabilities before they escalate,” said Grant Harper, Global Lead for Financial Services at IT software monitoring firm, ITRS.

But DORA compliance doesn’t have to be resource-intensive. Konfer Clear™ streamlines the process by eliminating manual reviews and providing a structured, AI-driven approach to regulatory alignment.

Why Choose Konfer Clear™?

Try Konfer Clear™ for Free: Reduce compliance risks and secure your operations. Schedule a demo today.

Published: April 2, 2025