Potential Practical Challenges Regarding The Implementation Of The DORA

On 14 February, 2023 the Securities and Markets Stakeholder Group (SMSG) published its advice on potential practical challenges that may arise in the implementation of the Digital Operational Resilience Act (DORA) covering both in-house systems and services outsourced to third-party providers. The SMSG highlighted the need for (i) clear and consistent definitions of operational resilience, (ii) effective coordination and communication between stakeholders, and (iii) a risk-based approach to implementation. SMSG's insights are valuable for financial institutions and regulators as they are working towards effective implementation of the DORA.?

In its advice to ESMA, the SMSG identified a number of key practical challenges as to the implementation of the DORA, which should really be considered as lex specialis to NIS 2 (Directive (EU) 2022/2555) and CER (Directive (EU) 2022/2557) namely a sector-specific Union act in with regard to the financial sector entities. These