Strengthening Cybersecurity: Understanding the Differences Between DORA and NIS-2

[Max Mirian]

In recent months, the EU has introduced two key pieces of legislation aimed at bolstering cybersecurity: NIS-2 and DORA. While both initiatives might seem similar at first glance, they target different sectors and address distinct security challenges. This article dives into the crucial differences between these regulations, helping you determine which might apply to your company.

A Recap: DORA and NIS-2 Explained

• NIS-2 (Network and Information Security Directive 2): This directive aims to standardize cybersecurity across the EU. It mandates high digital security standards for organizations vital to society's functioning, such as those in energy, transportation, and healthcare.

• DORA (Digital Operational Resilience Act): This regulation focuses on strengthening the resilience of digital systems in the financial sector. It ensures financial institutions can withstand cyberattacks and continue operating, prioritizing the availability and integrity of financial services.

 

Key Differences

While both DORA and NIS-2 aim to enhance cybersecurity, they differ in several key aspects:

• Objectives: NIS-2 aims for a broader societal goal of improving overall cybersecurity, while DORA focuses specifically on the resilience of the financial sector.
• Requirements: The regulations differ in specific requirements. For example, NIS-2 focuses on supply chain security, while DORA emphasizes risk management of third-party technology providers.
• Penalties: NIS-2 outlines predefined financial penalties for non-compliance, while DORA leaves sanctions up to individual member states.
• Compliance Audits: NIS-2 requires security audits every two years, while DORA mandates stricter testing, including threat-based penetration tests every three years and annual resilience testing.
• Legal Form: NIS-2 is a directive, requiring individual member states to implement it into their national laws. DORA, as a regulation, becomes automatically applicable in all member states on the specified date.
• Affected Organizations: NIS-2 covers 18 critical sectors, while DORA specifically targets financial institutions and related entities.
• Precedence: In case of overlap, DORA takes precedence over NIS-2 due to its status as a "lex specialis" (specific law) for the financial sector.

By understanding these key distinctions, you can determine which regulation your company needs to comply with and prepare for the specific requirements it entails.