The landscape of financial services compliance in Europe is evolving, with the Digital Operational Resilience Act (DORA) set to reshape how firms manage and report IT incidents. Announced in July 2024 and coming into effect on 17 January 2025, DORA aims to bolster operational resilience in the financial sector by establishing unified regulatory standards.
For Quantium, DORA allows us to demonstrate our ongoing commitment to operational excellence and client trust. We have proactively addressed these requirements to ensure that our systems are fully compliant, and to allow a seamless transition for ourselves and our clients to a post-DORA world.
What is DORA?
DORA introduces stringent guidelines for operational resilience within the financial sector, focusing on risk management, incident reporting, and cybersecurity. It requires firms to:
- Maintain robust IT systems capable of withstanding, recovering from, and adapting to operational disruptions (such as cyberattacks).
- Report IT incidents promptly to regulatory authorities and affected stakeholders.
- Regularly assess cybersecurity measures through testing and external audits.
How DORA impacts Quantium
As a key technology partner to general partners (GPs) in private markets, we recognize the critical nature of Quantium’s role in your operations. DORA mandates new reporting standards for IT incidents, emphasizing transparency and accountability. These requirements compel all software providers to:
- Report IT incidents: Under DORA, service providers must report significant IT incidents to European authorities and notify our clients within strict timelines—an initial report within 24 hours, followed by an intermediate report within 72 hours.
- Enhance cybersecurity: Regular penetration testing and security scans are essential components of DORA compliance, ensuring vulnerabilities are identified and mitigated proactively.
- Document and standardize processes: Thorough documentation and standardized templates for incident reporting are pivotal to adhering to DORA’s framework.
- ICT risk management: Establish and main resilient ICT systems equipped with integrated anomaly detection capabilities, supported by robust Business Continuity, Disaster Recovery, and contingency plans to ensure operational readiness and minimize disruptions.
Steps we’ve taken to ensure DORA compliance
Quantium has implemented a comprehensive strategy to ensure full compliance with DORA by January 2025. Our preparations include:
1. Reporting templates: We have developed robust reporting templates in accordance with DORA guidelines to facilitate prompt and accurate incident communication. This ensures we can meet the 24-hour and 72-hour reporting windows without delays.
2. Enhanced penetration testing:Quantium has completed comprehensive penetration testing protocols to identify and address potential vulnerabilities in our systems. These tests are conducted in alignment with DORA’s recommendations for regular external assessments.
3. SOC 2 Type II accreditation: Our policies adhere to rigorous SOC 2 standards, reinforcing our commitment to stringent security and operational controls.
4. Regular security scans: We conduct monthly to quarterly security scans of our internal networks to detect and resolve issues preemptively, ensuring continuous operational resilience. Additionally, integrated anomaly detection capabilities are being integrated into our ICT systems.
Supporting our clients through DORA compliance
Quantium’s preparations extend far beyond internal compliance. We are deeply invested in supporting our clients’ readiness for DORA. By aligning our practices with regulatory standards, we provide our customers with confidence in their own operational resilience in addition to Quantium’s, through:
- Seamless reporting: Our DORA-compliant reporting templates ensure that clients receive timely and accurate updates in the event of an IT incident, helping them meet their own regulatory obligations.
- Cybersecurity leadership: With enhanced testing and monitoring, our clients benefit from robust and secure systems that minimize risk.
- Regulatory insights: Our proactive engagement with regulators makes Quantium a trusted partner, providing our clients with peace of mind in a rapidly evolving regulatory environment.
You’re in safe hands with Quantium
The transition to DORA represents a significant milestone for the financial sector. By implementing best practices recommended under DORA, we have ensured our readiness well ahead of these directives coming into effect. Our clients can be confident that Quantium is fully DORA-compliant and prepared to meet the rigorous demands of this new regulatory era.
As a trusted technology partner to private markets firms, Quantium continues to be committed to operational resilience, regulatory compliance, and client success. Our comprehensive preparations for DORA ensure we remain a reliable cornerstone in our clients’ operations, in Europe and beyond.