The financial services sector has always been a high-value target for cybercriminals, nation-state actors, and insider threats. In the European Union (EU), regulators have long recognized that safeguarding the integrity of financial systems requires not just robust governance but also strong and adaptive cybersecurity measures. With the introduction of the Digital Operational Resilience Act (DORA), the EU has taken a significant step forward in harmonizing cybersecurity and ICT risk management requirements across financial institutions.
One key technology that can help financial organizations align with DORA’s requirements is Network Detection and Response (NDR). NDR platforms provide the visibility, detection, and response capabilities that financial institutions need to meet regulatory standards while proactively defending against advanced cyber threats.
In this article, we’ll explore the essentials of the DORA regulation, its impact on the financial services industry, and how NDR can help organizations achieve compliance and operational resilience.
Understanding the DORA Regulation
The Digital Operational Resilience Act (DORA), which came into force in January 2023, aims to ensure that all financial entities in the EU can withstand, respond to, and recover from all types of ICT-related disruptions and threats. It creates a unified legal framework for digital resilience that applies to a broad range of entities, including:
- Banks and credit institutions
- Insurance companies
- Investment firms
- Payment service providers
- Crypto-asset service providers
- Critical ICT third-party providers (e.g., cloud services)
Key Pillars of DORA
- ICT Risk Management Framework
Financial institutions must establish governance structures, policies, and controls for managing ICT risks effectively. - Incident Reporting
Entities are required to classify, report, and escalate major ICT-related incidents to regulators promptly. - Digital Operational Resilience Testing (DORT)
Periodic testing, including threat-led penetration tests (TLPTs), must validate ICT defenses. - Third-Party Risk Management
Firms must manage dependencies on external ICT providers and ensure contractual alignment with resilience requirements. - Information Sharing
Encourages collaboration and intelligence sharing on cyber threats and vulnerabilities across the financial ecosystem.
DORA enforces stricter accountability and resilience expectations, meaning organizations can no longer afford a reactive cybersecurity posture. They need proactive tools like NDR to comply effectively.
Where NDR Fits into the DORA Framework
NDR is uniquely positioned to support several of DORA’s requirements. Unlike perimeter-based defenses, NDR continuously monitors traffic within the network, identifying anomalies, lateral movement, and advanced threats that other tools often miss.
1. Strengthening ICT Risk Management
DORA mandates continuous monitoring of ICT environments. NDR platforms provide:
- Full network visibility across hybrid, cloud, and on-prem environments.
- Behavioral analytics to detect suspicious activity in real time.
- Threat hunting capabilities for proactive risk identification.
This directly supports organizations in building a comprehensive ICT risk management framework.
2. Incident Detection and Reporting
DORA requires timely reporting of major cyber incidents. NDR enables:
- Automated detection of anomalies like command-and-control (C2) traffic or data exfiltration.
- Detailed forensic evidence for root cause analysis.
- Incident classification support with severity scoring and MITRE ATT&CK mapping.
With NDR, financial institutions can detect and report incidents faster, meeting DORA’s regulatory timelines.
3. Supporting Resilience Testing
NDR data can enhance resilience testing programs by:
- Providing real-world attack detection baselines for penetration testing validation.
- Offering insight into lateral movement paths, allowing institutions to test containment strategies.
- Continuously verifying the effectiveness of incident response playbooks.
This makes NDR a valuable ally in preparing for DORA’s mandated Digital Operational Resilience Testing (DORT).
4. Third-Party Risk Oversight
Financial institutions depend heavily on third-party ICT providers. NDR helps by:
- Monitoring traffic to/from third-party services for abnormal behaviors.
- Detecting misconfigurations or malicious activities in cloud integrations.
- Supporting contractual assurance by demonstrating technical controls for third-party oversight.
5. Enabling Threat Intelligence and Information Sharing
NDR platforms often integrate with Threat Intelligence Platforms (TIPs) and SIEM/SOAR systems. This facilitates:
- Threat enrichment of network detections with global intelligence.
- Collaboration-ready reporting for regulatory bodies and industry peers.
- Contextual awareness that strengthens ecosystem-wide resilience.
Benefits of NDR for Financial Institutions Facing DORA
By deploying NDR in alignment with DORA, financial entities gain both compliance and security benefits:
- Regulatory Alignment – Demonstrates compliance with continuous monitoring, reporting, and testing requirements.
- Reduced Dwell Time – Early detection of stealthy threats minimizes attacker persistence.
- Improved Incident Response – Enriched data and automated insights accelerate remediation.
- Holistic Visibility – Unified monitoring across on-premises, cloud, and hybrid environments.
- Operational Resilience – A stronger ability to withstand, respond to, and recover from cyber incidents.
Practical Steps for Implementation
Financial organizations looking to align NDR with DORA should take the following steps:
- Map DORA Requirements – Align NDR capabilities with the regulation’s five pillars.
- Integrate NDR into SOC Workflows – Ensure seamless integration with SIEM, SOAR, and TIPs.
- Leverage NDR for Testing – Use NDR insights to validate penetration testing and red team exercises.
- Establish Reporting Protocols – Configure incident detection thresholds and automated reporting pipelines.
- Train Security Teams – Provide SOC analysts with hands-on training to maximize the value of NDR insights.
Conclusion
DORA represents a significant regulatory shift for financial services in the EU, emphasizing resilience, accountability, and proactive cybersecurity. For organizations grappling with these new requirements, Network Detection and Response (NDR) offers a practical and effective solution.
By delivering continuous visibility, advanced threat detection, and incident response capabilities, NDR not only helps financial institutions comply with DORA but also strengthens their overall cyber resilience. In an era where cyber threats are evolving faster than regulations, NDR provides the agility and assurance financial services need to protect their critical assets and maintain trust in the digital economy.
