Glossary
Principle of proportionality
The way DORA's requirements are adapted to the size, risk profile and systemic importance of each entity.
The principle of proportionality, present throughout DORA, means that requirements are not identical for all financial entities. A large systemic bank applies the full regulation, while a micro-enterprise or a small, non-interconnected investment firm benefits from a simplified framework (Article 16), with a lighter compliance burden.
This principle aims to prevent a regulation designed for large systemic players from becoming disproportionate for smaller organisations.