Digital Operational Resilience Act Articles (Proposal)

The Articles (Proposal) of the Digital Operational Resilience Act

Digital Operational Resilience Act (DORA), Article 11, Backup policies and recovery methods.

1. For the purpose of ensuring the restoration of ICT systems with minimum downtime and limited disruption, as part of their ICT risk management framework, financial entities shall develop:

(a) a backup policy specifying the scope of the data that is subject to the backup and the minimum frequency of the backup, based on the criticality of information or the sensitiveness of the data;

(b) recovery methods.

2. Backup systems shall begin processing without undue delay, unless such start would jeopardize the security of the network and information systems or the integrity or confidentiality of data.

3. When restoring backup data using own systems, financial entities shall use ICT systems that have an operating environment different from the main one, that is not directly connected with the latter and that is securely protected from any unauthorized access or ICT corruption.

For financial entities referred to in point (g) of Article 2(1), the recovery plans shall enable the recovery of all transactions at the time of disruption to allow the central counterparty to continue to operate with certainty and to complete settlement on the scheduled date.

4. Financial entities shall maintain redundant ICT capacities equipped with resources capabilities and functionalities that are sufficient and adequate to ensure business needs.

5. Financial entities referred to in point (f) of Article 2(1) shall maintain or ensure that their ICT third-party providers maintain at least one secondary processing site endowed with resources, capabilities, functionalities and staffing arrangements sufficient and appropriate to ensure business needs.

The secondary processing site shall be:

(a) located at a geographical distance from the primary processing site to ensure that it bears a distinct risk profile and to prevent it from being affected by the event which has affected the primary site;

(b) capable of ensuring the continuity of critical services identically to the primary site, or providing the level of services necessary to ensure that the financial entity performs its critical operations within the recovery objectives;

(c) immediately accessible to the financial entity’s staff to ensure continuity of critical services in case the primary processing site has become unavailable.

6. In determining the recovery time and point objectives for each function, financial entities shall take into account the potential overall impact on market efficiency. Such time objectives shall ensure that, in extreme scenarios, the agreed service levels are met.

7. When recovering from an ICT-related incident, financial entities shall perform multiple checks, including reconciliations, in order to ensure that the level of data integrity is of the highest level. These checks shall also be performed when reconstructing data from external stakeholders, in order to ensure that all data is consistent between systems.