In recent months, two major EU regulations — DORA (Digital Operational Resilience Act) and NIS2 (Network and Information Security Directive 2) —have made waves in the regulatory landscape. Both aim to enhance digital resilience but target different sectors and challenges. Understanding these differences is important for businesses to ensure compliance and protect their operations. At Devhd, as a Premier ServiceNow Partner, we can help streamline this process by leveraging the power of the ServiceNow platform.
What is DORA?
DORA is a regulation designed to bolster the operational resilience of financial institutions in the EU. It aims to ensure that these entities can continue functioning during and after disruptions, whether from cyberattacks or other operational challenges. DORA focuses on ICT (Information and Communication Technology) risk management, incident reporting, resilience testing, third-party risk management, and information sharing.
Key sectors under DORA:
- Banks and other non-banking financial institutions
- Insurance companies
- Investment firms
What is NIS2?
NIS2 is an updated directive aimed at improving cybersecurity across various critical sectors in the EU, expanding on the original NIS directive. Unlike DORA, which is narrowly focused on the financial sector, NIS2 applies to a broader range of industries. The directive seeks to unify cybersecurity requirements across EU member states and mandates measures for risk management, incident reporting, and information sharing.
Key sectors under NIS2:
- Energy
- Transportation
- Healthcare
- Digital infrastructure
- Water services
Differences Between DORA and NIS2
While both DORA and NIS-2 aim to enhance cybersecurity, they differ in several key aspects. Here’s a breakdown of how these regulations differ in their scope, regulatory approach, focus areas, and penalties:
- Objectives: NIS-2 aims for a broader societal goal of improving overall cybersecurity and it covers a wide range of critical infrastructure sectors, including healthcare, energy, and transport, while DORA focuses specifically on the resilience of the financial sector and its ICT service providers.
- Requirements: Besides cybersecurity, 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.
- 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.
- 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.
- 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.
- Focus Areas:
- DORA emphasizes operational resilience, with stringent requirements for ICT risk management and resilience testing.
- NIS2 focuses more broadly on cybersecurity and applies across multiple sectors with varying degrees of regulatory requirements.
- Penalties: NIS-2 outlines predefined financial penalties for non-compliance, that vary by country, while DORA leaves sanctions up to individual member states but aims for dissuasive fines.
How ServiceNow can help
Navigating the complexities of both DORA and NIS2 can be challenging, especially for organizations operating across multiple sectors. ServiceNow offers a unified platform that can simplify compliance with both frameworks. From unified asset management through the CMDB to integrated risk management and incident response, the platform provides the tools needed to align with regulatory demands:
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Unified CMDB: With a centralized Configuration Management Database (CMDB) on ServiceNow, organizations can track and manage assets across their entire infrastructure, ensuring that they meet both DORA and NIS2 requirements.
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Integrated Risk Management: ServiceNow’s GRC (Governance, Risk, and Compliance) solutions enable organizations to manage risk effectively, providing the tools needed for continuous monitoring and reporting as required by both DORA and NIS2.
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Incident Response and Reporting: ServiceNow’s Security Incident Response module helps organizations quickly address and report incidents, ensuring compliance with the stringent reporting requirements of both regulations.
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Third-Party Risk Management: With the rise of ICT supply chain risks, ServiceNow offers solutions for managing third-party risks, which is crucial for both DORA and NIS2 compliance.
However, simply having the right tools isn’t enough. The real value comes from knowing how to implement and optimize them effectively.
Why choose Devhd, Premier ServiceNow Partner?
At Devhd, we focus on what we do best: leveraging our deep expertise in the ServiceNow platform to help you meet your specific compliance needs. As a boutique partner, we bring a level of attention and detail that larger firms may overlook. We understand the intricacies of the platform inside and out, ensuring that you’re not just compliant, but also making the most of your ServiceNow investment.
Whether it’s streamlining your risk management processes, improving incident response times, or ensuring third-party risks are managed effectively, we’re here to guide you every step of the way.
Conclusion
DORA and NIS2 present new challenges for organizations across the EU, but with the right partner, navigating these regulations becomes far more manageable. Get in touch with us today at contact@dev-hd.com to see you can make the most out of ServiceNow for your DORA and NIS2 compliance journey.
