Financial entities and organizations manage many contracts, interact with myriad Information and Communication Technology (ICT) vendors, and face increasing regulatory pressure to stay "stable." In fact, since January 17, 2025, contracts have suddenly mattered a lot more to EU financial entities due to DORA compliance requirements. The Digital Operational Resilience Act (DORA) is an EU regulation that underscores the importance of digital stability for financial organizations. Thankfully, CLM software can decrease contract risk for EU financial organizations and bring order and clarity to contract processes.
Bit of Background: Why DORA Puts Contracts in the Spotlight
DORA is an EU regulation intended to ensure that financial institutions and their ICT providers can withstand cyber incidents and operational disruptions. It took effect on January 17, 2025, meaning compliance with DORA became mandatory for financial entities starting on that date.
DORA contract requirements include specific security, reporting, resilience-resting, and oversight obligations that should be written directly into ICT vendor contracts. Contracts must reflect who handles what, how quickly incidents must be reported, what standards vendors must meet, etc.
So, what's the problem?
Well, many organizations don't have centralized, ready access to ICT vendor oversight with contracts and related data. Additionally, older agreements often lack the terms and specifications required by DORA. Finally, it proves difficult for most organizations to track which vendors meet which obligations.
How CLM Software Makes DORA Easier
CLM software makes DORA easier for EU financial entities in a myriad of ways.
Centralized Contract Storage
CLM software can store every ICT-related contract in a single, easily searchable contract repository. Teams can quickly see which agreements involve ICT providers and whether they contain required DORA clauses - including with intelligent search down to the term or word level with saved search, search history, and "Did you mean...?" functionality. These tools make contract visibility, audit readiness, and cross-departmental collaboration easier.
Smart Clause Tracking
CLM software's contract intelligence can scan contracts for required DORA-related verbiage and surgically redline DORA-relevant legalese in place of the organization's preferred language, if needed. Organizations can also assign the desired and required subject matter experts to DORA-related clauses in a contract so that any attempted change to those clauses loops in the relevant SMEs for approval. This functionality reduces manual searching and helps teams update older contracts with up-to-date DORA-related language for consistency across the board.
Vendor Risk Monitoring
CLM software can track vendor-related resilience obligations, such as service levels, uptime, and data protection, through configurable sub-tables and automated ICT vendor monitoring. Organizations can enable rules-based workflows to help ensure DORA-aligned expectations are met, using automated email alerts and system notifications for reporting. With support for recurring tasks, escalations, and a dynamic calendar, the CLM system helps ensure consistent oversight of third-party risk and contractual milestones with comprehensive visibility and proactive control.
Automated Workflows for Updates
CLM software can automate approval routing, contract revisions, renewals, and update reminders. Teams can utilize pre-configured workflows to update older contracts or incorporate new DORA-required clauses and terms at scale. Users can be alerted across contracts to update DORA requirements if a contract lacks or contains certain terms. As such, they can enjoy time savings and error reduction.
How CLM Aligns With DORA’s Core Requirements
1. ICT Risk Management: DORA requires organizations to manage ICT‑related risks systematically, and CLM software helps ensure risk‑related terms (security controls, responsibilities, uptime requirements) are consistently included in contracts in the preferred language.
2. Incident Reporting: DORA mandates timely reporting of ICT incidents, and CLM helps ensure contracts include reporting timelines and responsibilities — and tracks them via workflow automation and optimization.
3. Resilience Testing: Contracts may need to specify testing obligations (frequency, scope, vendor participation), and CLM helps document, track, and enforce these requirements.
4. Third-Party Risk Management: CLM centralizes vendor relationships and obligations, making oversight and compliance easier.
5. Information Sharing: CLM improves collaboration by centralizing contract data, supporting controlled access, and fostering collaborative online document editing with comprehensive audit trails..
Why CobbleStone Is an Ideal Fit for DORA
CobbleStone Contract Insight® delivers all the features mentioned above, and many more to help EU financial entities meet DORA requirements. Its configurable clause libraries and templates for including DORA-aligned language make contract authoring and negotiation a breeze. Surgical auto-redlining helps ensure that preferred and necessary contract language around DORA is included. Automated reminders, workflows, and ad-hoc and custom reports are specifically suited for all-around visibility in a regulated industry such as financial services.
Want to learn more about these CobbleStone features and countless others? Book a free demo today! It's free - and risk-free.
*Legal Disclaimer: This article is not legal advice. The content of this article is for general informational and educational purposes only. The information on this website may not present the most up-to-date legal information. Readers should contact their attorney for legal advice regarding any particular legal matter.
