DORA: Impact on Transparency, Investor Protection and Governance

Impact on transparency

DORA introduces a series of measures aimed at increasing transparency in the financial sector, both for investors and for the competent authorities.

Among these measures, the obligation to publish information on operational and cyber risk management stands out. Financial institutions will be obliged to publish information on their approach to operational and cyber risk management, including their policies, strategies and procedures. This information must be clear, concise and accessible to the public.

Likewise, DORA provides greater transparency in operational and cyber incidents. Financial institutions will be obliged to notify the competent authorities of the most serious operational and cyber incidents that may have a significant impact on their operations or on the stability of the financial system.

Similarly, access to information for investors is improved. Investors will have greater access to information on the operational and cyber risks of the financial institutions in which they invest. This will enable them to make more informed investment decisions.

Inverter protection

DORA also introduces a number of measures aimed at strengthening investor protection, for example, the establishment of minimum requirements for operational and cyber risk management.  Financial institutions will be obliged to comply with a number of minimum requirements for operational and cyber risk management. These requirements include the identification, assessment and management of risks, as well as the implementation of adequate control measures.

On the other hand, DORA improves the supervision of financial institutions. Competent authorities will have greater powers to supervise the operational and cyber risk management of financial entities. This will make it possible to identify and address risks more effectively.

DORA introduces additional measures to protect investor data, such as the obligation of financial institutions to implement adequate security measures to protect this data.

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Governance

DORA also introduces measures to improve governance in the financial sector by establishing a governance framework for operational and cyber risk management. Financial institutions will be required to establish a clear and robust governance framework for operational and cyber risk management. This framework should include assigning clear responsibilities, implementing adequate control processes and conducting periodic reviews.

Similarly, DORA improves the risk management culture by seeking to foster a strong risk management culture in the financial sector. This implies that operational and cyber risks should be considered a priority in all areas of the organization.

Hiring a specialized legal service

DORA is a complex regulation that has a significant impact on the financial sector. It is important for financial institutions to seek advice from a lawyer specializing in financial law to ensure compliance with DORA requirements.

Law is not a commodity. You should not hire a lawyer simply because of the price, but you should look for a professional with experience and expertise in the area in which you need advice. ILP Abogados has a team of lawyers

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