The Digital Operational Resilience Act (DORA), which became applicable on January 17, 2025, has introduced stringent requirements for financial entities to manage operational resilience, especially regarding ICT-related risks. One of the critical obligations under DORA is the maintenance of comprehensive registries for third-party service providers and their associated contracts. While compliance might seem daunting, platforms like Avokaado can simplify this process. Here’s how.
Understanding the Registry Requirements under DORA
DORA mandates that financial entities maintain:
- A register of third-party ICT service providers, including details of contractual arrangements.
- Documentation of critical or important functions supported by third-party providers.
- Information about data processing locations, service level agreements, and exit strategies.
These registries must be precise, up-to-date, and accessible for regulatory reporting and audits. Furthermore, they must include key contractual provisions to ensure operational resilience and compliance.
Avokaado’s Role in Managing DORA Compliance
Avokaado is a comprehensive document lifecycle management platform that enables companies to centralize, automate, and streamline their document processes. With its robust Data Registry and Party Registry features, Avokaado offers an ideal solution for maintaining DORA-compliant registries.
1. Centralized Data Registry
Avokaado’s Data Registry allows financial entities to:
- Extract and Store Data Automatically: Using AI-powered extraction tools, Avokaado pulls relevant data from contracts and other documents, ensuring that critical information is captured and stored in a structured format.
- Organize by Document Types: The platform supports data modeling based on document types, enabling seamless categorization of information by contract type, service provider, or business function.
- Ensure Data Accuracy: Built-in automation reduces manual errors, ensuring that registries remain accurate and up to date.
For more insights on data-driven document management, visit Avokaado's blog post on How to Start Data-Driven Document Management with Avokaado.
Example of a DORA-Compliant Data Registry
Here’s an example of how a data registry on Avokaado could be structured using DORA required data points:
- Service Provider Name – Name of the third-party ICT service provider.
- Contract ID – Unique identifier for the contract.
- Service Description – Detailed description of the services provided.
- Data Processing Locations – Locations where the provider processes and stores data.
- Service Level Agreements (SLAs) – Performance targets and metrics defined in the agreement.
- Start Date – Contract start date.
- End Date – Contract end date or renewal terms.
- Criticality Assessment – Assessment of whether the service is critical or important to operations.
- Audit Rights – Details of the entity’s rights to audit the service provider.
- Termination Clauses – Exit strategies and notice periods for contract termination.
This structured data registry ensures that all relevant information is captured and easily accessible for compliance purposes.
2. Comprehensive Party Registry
Managing vendor-related risks and relationships is simplified with Avokaado’s Party Registry, which:
- Tracks All Parties: From clients to ICT vendors, all stakeholders involved in contractual relationships are cataloged in one place.
- Provides Full Visibility: Organizations gain insights into vendor relationships, contract statuses, and critical dependencies.
- Supports DORA’s Oversight Requirements: By maintaining detailed information about each party, including performance metrics and audit trails, Avokaado ensures that entities can meet regulatory expectations.
Learn more about Avokaado's Party Registry in their article on Contract Data Extraction Benefits and a Short “How-To” Do It with AI.
Key Benefits of Using Avokaado for DORA Compliance
- Operational Efficiency
- Automate data collection and updates, minimizing the manual effort required to maintain registries.
- Streamline the creation and maintenance of contracts with built-in templates and workflows.
- Regulatory Readiness
- Ensure compliance with DORA’s registry and contractual requirements by leveraging Avokaado’s structured data storage.
- Simplify audits and reporting with centralized, easily accessible records.
- Enhanced Resilience
- Gain a real-time overview of third-party risks and dependencies.
- Implement effective monitoring and exit strategies by maintaining organized, accurate records.
- Scalability and Adaptability
- Scale the solution to accommodate growing vendor relationships or evolving regulatory requirements.
- Customize workflows and templates to align with internal policies and processes.
How to Get Started with Avokaado
To begin managing your DORA-related responsibilities with Avokaado:
- Digitize Existing Contracts: Upload contracts to Avokaado and let the platform’s AI extract critical data.
- Set Up Registries: Organize information into data and party registries tailored to your organization’s needs.
- Automate Workflows: Use Avokaado’s automation tools to manage updates, monitor compliance, and generate reports.
- Train Your Team: Ensure your team is familiar with Avokaado’s features to maximize its potential.
Conclusion
DORA compliance doesn’t have to be overwhelming. With Avokaado’s powerful Data Registry and Party Registry capabilities, financial entities can confidently meet their obligations while enhancing operational efficiency. By centralizing and automating registry management, Avokaado not only simplifies compliance but also strengthens resilience against ICT-related risks.
Start your journey to seamless compliance today with Avokaado by booking a demo or signing-up for a free trial.
