Digital trust is the cornerstone of modern business and governance in an increasingly interconnected world. Organizations must ensure that their operations are secure, resilient and compliant with evolving regulatory frameworks to foster this trust. The Digital Operational Resilience Act (DORA) and the Network and Information Systems (NIS2) Directive provide comprehensive blueprints for achieving this goal within the EU, focusing on sectors critical to the economy and public safety.
By aligning ICT governance with the requirements of these regulatory frameworks, organizations can enhance operational resilience against cyberthreats while mitigating regulatory penalties.
The DORA framework is designed to ensure that financial entities remain operationally resilient against ICT-related disruptions and cyber threats. It emphasizes comprehensive ICT risk management, robust third-party oversight, incident reporting and resilience testing for financial entities.
The NIS2 Directive updates the EU's cybersecurity framework to address evolving threats and strengthen the resilience of essential sectors (e.g., energy, healthcare, finance) and important sectors (e.g., food production, digital services). The NIS-2 Directive emphasizes proactive risk management, accountability and cross-border collaboration to strengthen cybersecurity across essential and important sectors.
As explored in a new ISACA white paper, while NIS2 and DORA target different sectors, their shared principles emphasize strengthening cybersecurity and operational resilience. Organizations in overlapping areas (such as financial entities operating critical infrastructure) must align with both frameworks, ensuring consistent risk management practices, reporting mechanisms and governance structures. This harmonization reduces duplication and enhances overall compliance efficiency.
Overlapping Areas Between NIS2 and DORA
The NIS2 Directive and DORA share several commonalities in their approaches to operational resilience and cybersecurity:
- Governance and Accountability
- Both require senior management involvement and accountability for ensuring compliance.
- Governance frameworks emphasize integrating cybersecurity/ICT risk management into overall organizational strategies.
- Risk Management
- Both mandates stress the importance of proactive risk identification, monitoring and mitigation.
- Supply chain security and third-party risk management are critical components.
- Incident Reporting
- Both require timely notification of significant incidents to relevant authorities, with detailed follow-up reports.
- Operational Resilience
- Both frameworks emphasize regular testing of systems to ensure resilience against disruptions, although DORA is more prescriptive in financial services.
- Enforcement and Penalties
- Both frameworks impose similar penalties, tying fines to global turnover and focusing on regulatory enforcement.
Key Differences Between NIS2 and DORA
- Sector-Specific Focus
- NIS2 applies broadly across critical infrastructure sectors.
- DORA focuses exclusively on financial entities and their ICT providers.
- Third-Party Oversight
- DORA introduces direct supervision of critical ICT providers by EU authorities.
- NIS2 requires entities to manage third-party risks but does not directly supervise providers.
- Testing Requirements
- NIS2 recommends vulnerability assessments and penetration testing.
- DORA mandates Threat-Led Penetration Testing (TLPT) for critical financial entities.
A Valuable Opportunity to Build Trust
Compliance with DORA and NIS2 is not merely a regulatory obligation but a strategic opportunity to build and sustain digital trust. By harmonizing these frameworks, organizations can enhance resilience, demonstrate accountability, and gain a competitive edge in the marketplace. Proactive investment in governance, risk management and operational maturity will ensure long-term success in the evolving digital landscape.
For more insights on this topic, download the new ISACA white paper, Resilience and Security in Critical Sectors: Navigating NIS2 and DORA Requirements.
