The Digital Operational Resilience Act (DORA) sets strict EU rules for financial institutions and IT providers, emphasizing strong cyber risk management, reporting, red teaming, and testing by 2025.
The Digital Operational Resilience Act (DORA) is a set of EU rules around how companies handle disruptions. Each half-decade, digital security requirements seem to ramp up, and the EU is a big part of these growing demands.
Financial entities need to now demonstrate a new approach to risk management, with January 2025 being when the new framework kick starts. It will govern banks, insurers, investment firms, and other financial companies. Third-party IT providers face similar scrutiny, too.
One fallout from this is that security validation through red teaming has become more important than ever. But before looking at how these assessments mirror actual cybersecurity threats, let’s dig into the DORA requirements.
DORA Requirements
DORA’s framework can be split into five elements, with IT risk management leading these pillars. Institutions ultimately need clear protocols to spot, block, and tackle cyber threats. Strong governance isn’t optional, of course, and written strategies must exist.
Quick incident reporting has more emphasis than before. Major IT issues require prompt notification to authorities, and financial entities must undergo threat-led testing. Service providers can’t escape oversight, as they ought to match the institution’s resilience standards.
Testing protocols demand thoroughness, and networks need assessment. Vulnerabilities require identification so that security plans can evolve. DORA ultimately pushes for constant vigilance and enhancement of protective measures.
What is Red Teaming?
To understand how red teaming helps, let’s quickly run through what it is. Red teaming is when expert professionals replicate sophisticated attack patterns, so it transcends basic checks. They even blend technical expertise with social manipulation, and physical security falls within this scope.
Teams will combine diverse talents so that a broad mix of skills is weaponised. Some focus on network penetration, while others excel at social engineering. Threat analysts tie this all together, and unexpected scenarios are launched. No warnings precede their attempts, either, so it creates genuine challenge conditions.
How Red Teaming Aligns with DORA Requirements
This methodology happens to precisely align with DORA’s testing demands, proving operational resilience through action – not documents.
Under DORA, financial firms must conduct regular attack exercises. The first two must be done internally, but the third must be by an external red teaming expert.
DORA also mandates purple teaming, which is a collaboration between red teams and the defenders (blue team) to boost the response capabilities.
Teams probe critical functions systematically and exploit complex attack chains. Supply chain vulnerabilities emerge clearly.
Documentation flows naturally as a result, with each attack path generating new evidence. Organizations gain compliance proof while strengthening defenses and incident response procedures improve through practical application.
Benefits of Red Teaming
Red teaming delivers substantial benefits for financial firms seeking DORA compliance by providing a comprehensive evaluation of their security posture. This proactive approach helps identify and remediate vulnerabilities that might otherwise remain undetected through conventional testing.
The methodology isn’t only for DORA – it existed long before these new EU rules. This is because it strengthens incident response procedures by testing them under realistic conditions, and this methodology dates back decades.
Red teaming exercises also help validate the effectiveness of security investments and demonstrate due diligence to regulators.
Final Word
Red teaming delivers vital DORA compliance support, but it ultimately proves one’s security capabilities through rigorous testing. Documentation satisfies regulatory requirements naturally, and as 2025 approaches, this methodology is becoming increasingly valuable.
