DORA and the Cyber Resilience Act: What Every Business Leader Must Know

The European Union is rolling out two of the most important cybersecurity laws in history: the Digital Operational Resilience Act (DORA) and the Cyber Resilience Act (CRA). These regulations set strict rules for financial institutions, software vendors, and product manufacturers doing business in Europe. DORA went live in January 2025, and the CRA will be fully enforceable by 2027. Both require stronger risk management, incident reporting, and product security. Whether your company is based in the EU or sells into it, these laws will affect you. This post explains what DORA and the CRA mean, why they matter, and how to prepare.

Why Cyber Laws Are Changing Now

Cyberattacks have been on the rise for years, but regulators are no longer content with voluntary best practices. The European Union wants to set strict, enforceable rules that hold businesses accountable for cybersecurity. That is where DORA and the Cyber Resilience Act come in.

The idea is simple. Technology has become critical to every business. If a bank, hospital, or software provider goes down because of a cyberattack, millions of people can be affected. Laws are meant to raise the floor so that cybersecurity is no longer optional or inconsistent.

What is DORA

The Digital Operational Resilience Act (DORA) applies to financial institutions like banks, insurers, and investment firms. It went into effect on January 17, 2025.

Key requirements include:

• Stronger risk management for IT systems and third-party providers

• Mandatory incident reporting within tight deadlines

• Resilience testing for critical systems

• Vendor accountability, meaning banks cannot pass the blame if a third-party service fails

For financial organizations, this law is a game changer. It sets common cybersecurity standards across the EU financial sector, making compliance a matter of survival rather than preference.

(If you are working on building resilience at the employee level, see our earlier blog on cybersecurity culture and training.)

What is the Cyber Resilience Act (CRA)

The Cyber Resilience Act (CRA) applies to companies that make or sell digital products, such as software, apps, and connected devices. It officially commenced in late 2024, and enforcement will ramp up by December 2027.

Key requirements include:

• Secure by design: products must be built with cybersecurity in mind, not added later

• Vulnerability management: vendors must monitor, disclose, and patch security flaws

• Transparency for customers: clear information on security support and lifecycle

• Accountability: if a product has weak security and causes damage, the vendor is responsible

For developers and product manufacturers, this shifts security from a “nice to have” to a legal obligation.

Why These Laws Matter Globally

You may be thinking, “We are not in the EU, so this does not apply to us.” That is a dangerous assumption. If your company sells into Europe, these laws apply. Even if you do not, expect similar rules to spread worldwide. The EU often sets the tone for global regulation, and many countries are watching closely.

The Business Risks of Ignoring Compliance

Noncompliance with DORA or the CRA is not a slap on the wrist. It can mean heavy fines, loss of market access, and reputational damage. Financial organizations that ignore DORA could face regulatory shutdowns. Software companies that skip CRA requirements could lose the ability to sell in the EU.

The risks go beyond money. Customers are increasingly choosing vendors and banks that can demonstrate strong security. Falling behind on compliance means falling behind in the market.

How to Prepare for DORA and CRA

1. Assess Your Current Cybersecurity Program

Audit your incident response, risk management, and vendor oversight. Identify gaps between current practices and what DORA or the CRA require.

2. Strengthen Vendor Management

Both laws place heavy emphasis on third-party risk. Make sure your contracts, oversight, and audits cover cybersecurity, not just price and service.

3. Implement Continuous Monitoring

Annual reviews are no longer enough. Both DORA and CRA expect ongoing monitoring and quick reporting of threats.

4. Build Security Into the Product Lifecycle

For CRA compliance, security must be included from the design phase. Patch management, vulnerability disclosure, and product updates must be built into your roadmap.

5. Train Your People

No law works without people who understand it. Train leaders, developers, and employees on compliance expectations and how to meet them.

(For insights on why training is the backbone of compliance, check our blog on cybersecurity training tips.)

The Silver Lining

Yes, compliance can feel like a burden. But stronger cyber laws can also be a business advantage. Companies that invest early will not only avoid fines but also win trust from customers and partners. Being able to say, “We are DORA and CRA ready” becomes a selling point.

Final Word: Compliance as Opportunity

DORA and the Cyber Resilience Act are not going away. They represent a new era in which cybersecurity is treated like financial reporting or workplace safety: mandatory, standardized, and enforceable.

The choice is simple. You can scramble to meet deadlines and hope regulators do not come knocking, or you can see compliance as an opportunity to strengthen your defenses and build customer trust.

Not sure where to start with EU cyber laws? Mike Wright, The Security Guru, helps businesses translate regulations into practical steps. Contact him today at security.guru/contact to prepare your organization before the deadlines hit.