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DORA Compliance for Financial Institutions

By
Rishabh Poddar | Co-Founder and CTO
2024-07-30
5 min read

How Confidential AI Combines Data Protection with AI Innovation

The Digital Operational Resilience Act (DORA) is a comprehensive framework established by the European Union to ensure that the financial sector operates safely in the face of increasing digital threats. 

One of the most comprehensive and strict regulations to date, the act is a pivotal moment for the financial services industry as its reliance on digital technologies, including AI, has significantly increased over the past several years, making it more vulnerable to cyber threats and ICT disruptions. To shield organizations from these threats, DORA lays out stringent requirements for data protection, risk management, continuous monitoring, incident response, and operational resilience.

To comply with this new framework, financial institutions operating in the EU must adopt advanced security measures. They need solutions that can safeguard data throughout its lifecycle—from storage and transmission to processing. As financial entities strive to meet these standards by January 2025, Opaque Systems' confidential AI platform offers a solution that not only ensures compliance, but also enables continued innovation with AI.

Opaque’s Confidential AI Brings Resilience to Financial Services

Opaque’s Confidential AI platform allows for secure and private machine learning and data analysis, ensuring that sensitive financial data used in AI models is protected, thereby accelerating AI into production. This capability is particularly vital in meeting DORA’s requirements, as it combines the power of AI with the highest standards of data security.

The platform is designed to handle large-scale data processing securely while maintaining high performance. Its interoperability with existing IT infrastructure allows financial institutions to integrate confidential AI into their workflows, and remain compliant without the need for extensive system overhauls.

Opaque Delivers DORA Compliance, Collaboration, and Risk Management

Opaque leverages confidential computing to power its confidential AI platform and provide a secure environment for data processing and analytics. By using hardware-based Trusted Execution Environments (TEEs), Opaque keeps data encrypted at rest, in transit, and during computation, significantly reducing the risk of unauthorized access and data breaches and shielding sensitive information. Opaque’s ability to maintain the confidentiality of data in use is a particularly crucial differentiator, since it’s an explicit DORA requirement.

By isolating sensitive computations within the TEEs, Opaque minimizes the attack surface available to adversaries. This isolation not only protects data but also strengthens resilience against—or ability to withstand—cyber incidents, aligning with DORA’s emphasis on operational stability.

Real-time monitoring and detailed audit trails enhance operational stability and resilience as well, providing continuous visibility into data processing activities and facilitating rapid response to any security incidents. This capability uniquely supports DORA’s mandates for efficient incident management, ensuring that financial institutions can quickly address and mitigate cyber threats.

Data processing rarely happens in a vacuum—financial services providers often work across geographies and jurisdictions, collaborate with other institutions, and engage with third-party providers that analyze or manage their data. To support these needs, Opaque’s protection takes data sovereignty and localization into account, ensuring that sensitive data processing adheres to local regulations and complies with DORA’s governance and risk management standards.

The platform also enables secure multi-party computation, allowing multiple financial entities to perform joint data analysis without exposing their individual datasets. And, when third-party players are involved, the platform significantly mitigates risks by securing data during processing. This alignment with DORA’s focus on managing external dependencies ensures that third-party services remain resilient and secure.

Innovating With Confidence

As financial institutions navigate the complexities of DORA compliance, Opaque’s confidential AI platform is a comprehensive solution. By providing robust data protection, real-time monitoring, secure collaborative analytics, and advanced AI capabilities, Opaque ensures that financial entities can meet DORA’s requirements and operate safely.

To learn more about what Confidential AI can do for you, request a demo here.

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