The problem of managing multiple and diverse regulations is one of the main pains for organizations. Two of these frameworks that have recently been in the limelight are the NIS2 or the Network and Information Systems Directive and DORA or the Digital Operational Resilience Act. Since these regulations are still being developed in the modern world in order to regulate the behavior of organizations in the sphere of cybersecurity, it is necessary to assess the degree of relevance and potential consequences for your enterprise.
NIS2 is a new iteration of the first NIS Directive proposed in 2016 to increase the level of preparedness and safeguard EU’s SOCIs. It broadens the prior directive to cover more categories and entities such as digital service providers, cloud computing providers, and data centers. On the other hand, DORA is a relatively new regulation of the European Union that deals with enhancing digital operational resilience of the financial sector in the case of any kind of cyber threat and disruption.
How NIS2 and DORA Compliance Boost Cyber Security
The levels of compliance with NIS2 and DORA are quite useful for an organization to improve its cybersecurity. By adhering to these regulations, you can:
- Enhance Incident Response and Reporting: However, both NIS2 and DORA lay down that the organisations have sufficient measures on how they intend to address the incidents and how to report them. This is useful in a way that all threats are identified, dealt with, and documented to the relevant authorities for the improvement of your organization’s cybersecurity.
- Improve Risk Management: Such regulations require that the organizations to assess risks and provide security measures for the risks that are realized. This makes it easier to deal with the threats since the organization is proactive and thus prepared than when the threats are actualized.
- Foster Collaboration and Information Sharing: NIS2 is about cooperation of sectors and sharing of threat information so that you know about new threats and how to avoid it, Similarly DORA.
- Ensure Business Continuity: Adoption of these regulations mandate that the organizations have to put in place good business continuity and disaster recovery plans so that essential service delivery can go on in the event of a cyber attack.
- Enhance Accountability and Governance: These regulatory frameworks define the accountabilities besides defining the responsibilities and the governance structures that are in place for the discharge of the cybersecurity responsibility within your organization.
Pros and Cons of Compliance with the NIS2 and DORA
While the benefits of NIS2 and DORA compliance are significant, navigating the implementation and ongoing adherence to these regulations can also present some challenges:
Benefits:
- Accomplishment of higher levels of cybersecurity readiness and preparedness
- Improvement of reporting and managing of incidents
- Enhancement of the risk management and the risk control techniques
- There are also many strategies that are dedicated to the improvement of the inter- and intra-sectoral collaboration and knowledge sharing.
- Superior business continuation and disaster management plans
- The improvement of accountability and the management of the cybersecurity programs
Challenges:
- Lack of clarity on the part of the compliance rules and regulations and also their dynamic nature
- It is highly time and resource consuming to put into practice the strategies.
- Challenges that are likely to lead to conflict with the other structures and policies of the organization
- Problems in demonstrating conformity to the authorities
- For example, the privacy and security of the data that has to be saved and analyzed
- Penalties that can be imposed and damage to company’s image in case of failure to meet the requirements
Technology in NIS2 and DORA Compliance
Like any other compliance processes, NIS2 and DORA regulations are enabled and backed by technology. There are those right tools and solutions available that can be used to facilitate the compliance, enhance the cybersecurity and also the risk management processes. Some key technological considerations include:
- Automated Compliance Monitoring and Reporting: Use the compliance management tools and applications to view your compliance position in real-time, to report and to search for, and address, non-conformities in a short time.
- Integrated Security Solutions: Implement various security measures that will include vulnerability assessment and management, threat assessment and response, and security information and event management (SIEM) systems in order to strengthen your organization’s security posture.
- Secure Data Management and Storage: Ensure that storage and use of data complies with the provisions of the NIS2 and DORA on protection and security of data.
- Incident Response and Disaster Recovery: Concentration on the acquisition of advanced solutions regarding the incident response and business continuity to enhance the organization’s defense against and recovery from cyber threats.
- Collaboration and Information Sharing Platforms: Implement cloud based secure systems that will allow exchange of data with other stakeholders and government agencies on threat intelligence besides recommended security measures.
Compliance is therefore made easier and the organization’s cybersecurity is enhanced hence the organization is fortified against the ever emerging threats in the technological world.
NIS2 and DORA compliance: What is next?
Therefore, with the further growth of the digital environment, cybersecurity legislation such as NIS2 and DORA will always remain relevant. Looking ahead, it’s likely that we’ll see several key developments in the future of these compliance frameworks:
- Expanded Scope and Sector Coverage: Similar to NIS2, DORA is also expected to expand in terms of the scope of industries and organisations it addresses beyond the said sectors.
- Increased Regulatory Scrutiny and Enforcement: One is likely to see more attention and enforcement proceedings from the regulatory authorities as well as possibly more severe consequences for violation.
- Harmonization of Cybersecurity Regulations: It might lead to more pressure to develop more similarity in the cybersecurity regulations within the EU and globally to simplify the legislation for the organizations that operate in multiple locations and are subjected to various rules and regulations.
- Emphasis on Continuous Improvement: The following change is also anticipated to take place over time: compliance frameworks will begin to de-emphasize the notion of monitoring, annual examination, and continual improvement of IT security controls over the one-time assessment and check-list concept.
- Integration with Emerging Technologies: In the future, as the digital environment changes, the same goes for NIS2 and DORA in order to be prepared for new cybersecurity threats that may stem from cloud computing, AI, IoT, and other technologies.
That way, you would be prepared for the future of NIS2 and DORA compliance to come and ensure that your cybersecurity plans align with the future changes in the legislation for the long-term success of your organization.
Conclusion
Due to the increasing threats in the field of cybersecurity, the implementation of regulations such as NIS2 and DORA becomes a vital necessity for organizations in Europe. Despite the fact that those compliance frameworks could seem as more work on top of what one already does, they in fact, enhance your cybersecurity posture, your ability to respond, your risk management, and the culture that embraces cybersecurity.
As you move through this dynamic landscape, just bear in mind that compliance is mandatory and not a choice for organizations and that it is a core component of your cybersecurity strategy that will help you in outcompiling the threats in order to protect your organizations’ valuable assets.
