How DORA Changes the Way You Approach Authentication and MFA

Executive Summary

The Digital Operational Resilience Act (DORA) is reshaping how organizations approach authentication and multi-factor authentication (MFA). Enforceable since January 17, 2025, compliance is critical for insurers and financial institutions in the EU, with hefty penalties for non-compliance. DORA emphasizes robust cybersecurity measures, especially in authentication, to safeguard all customer interactions. As businesses prepare for DORA's requirements, they must re-evaluate their auth and MFA strategies to ensure they meet the new regulatory landscape.

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Understanding DORA’s Impact on Cybersecurity Strategies

What is DORA?

DORA, or the Digital Operational Resilience Act, aims to optimize resilience within the digital infrastructure of financial and insurance sectors across the EU. It requires organizations to bolster their cybersecurity protocols to defend against growing digital threats.

Key Requirements for Compliance

Financial institutions must prioritize compliance with DORA to avoid severe penalties. The legislation introduces rigorous compliance measures, including:

• Strong Cybersecurity Measures: Institutions are mandated to implement stringent security controls.
• Vigilant Risk Management: Companies must continuously assess and enhance their operational resilience.

Authentication and MFA Under DORA

With DORA's focus on authentication, frameworks guiding these processes need critical updates:

Enhanced Authentication Protocols

DORA specifies the implementation of strong authentication mechanisms to protect customer data and financial transactions. This includes:

• Multi-factor Authentication (MFA): A necessary measure to enhance security through various verification methods.
• Consistent Security Controls: It is essential that security measures are uniform across different platforms such as banking portals and trading systems.

Third-Party Risk Management

Cybersecurity isn't limited to an organization's immediate operations. DORA emphasizes the need for:

• Third-Party Assessments: Organizations must regularly evaluate the cybersecurity posture of their partners to mitigate external risks.
• Unified Security Standards: These must be enforced externally just as strictly as they are internally.

Preparing Your Organization for DORA Compliance

To align with DORA's requirements, organizations should undertake comprehensive evaluations of their current authentication and MFA strategies:

1. Risk Assessment: Identify gaps in existing authentication processes.
2. Strategy Development: Tailor new protocols and technologies to meet DORA’s expectations.
3. Training and Awareness: Educate staff about the importance of robust cybersecurity measures.

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