NIS2 And DORA: What Tech Companies Need To Know 

NIS2 and DORA are two new EU rules that aim to boost business security by improving how firms handle risks and guide sensitive data. These rules might not apply to every tech company, but they can still make a difference. Clients may want to check if their tech providers stick to these rules to make sure they take security.

This guide will break down NIS2 and DORA, how they might affect tech companies, and what businesses can do to get ready.  We’ll also talk about ways to build client trust, manage risks through contracts, and teach customers about security best practices.

Understanding NIS2 And DORA

NIS2 (formerly 2022/2555) is about improving cybersecurity in critical industries. It builds on the original NIS by adding more rules and expanding to more sectors. The aim is to have a higher level of cybersecurity across the EU. NIS2 applies to medium and large businesses in the energy, transport, health, digital infrastructure, etc.

• Individual businesses must improve their security, report incidents, and collaborate with authorities.
• EU member states must transpose NIS2 into their national laws to enforce the new rules.

Meanwhile, DORA, the Digital Operational Resilience Act, concerns the financial sector. It helps banks, insurance companies, and payment services protect against digital disruptions and cyberattacks.

• Financial institutions must improve risk management, incident reporting, and security testing.
• Unlike NIS2, DORA applies directly to all EU member states from January 17th, 2025.
• Financial businesses must do regular audits and risk assessments to prove compliance with DORA’s standards.

Although both NIS2 and DORA are about security, they target different sectors and have different rules.

Transparency And Communication To Build Customer Trust

Customers must become increasingly conscious of how to safeguard their data, as cyberattacks and data breaches are frequent. You should be open and upfront about your security initiatives to create and maintain trust. Transparency shows you take responsibility, and customers know their data is safe. Being transparent can prevent loss of trust during a data breach.

Companies should be open about what happened, how it affects customers, and what they’re doing to fix it. This will reduce customer anger and show that they’re serious about data protection.

Sharing info about your security efforts, like encryption methods or other protective measures, also builds trust. Regular updates show customers you’re committed to safety. Customers will trust you if you prove you’re working on better protection. Accountability is key to transparency.

Taking responsibility for customer data demonstrates you’re willing to learn from mistakes and improve. Admit mistakes and share improvement plans; you’ll build more trust over time.

To build trust, you should proactively communicate, provide regular security updates, and respond quickly to threats or incidents. For example, you should notify customers immediately of a data breach and tell them what to do (such as changing passwords).

If you let customers give feedback on security concerns and act on it, you’ll improve security even more. Cybersecurity PR can also help you share information clearly and honestly.

Read more about DORA principles – DORA: Safeguarding Financial Data 

Clarity In Contracts To Manage Risk And Liability

Clear contracts matter in liability and cybersecurity. Unclear or vague language could cause misunderstandings, arguments, financial losses, or reputation damage for a business.

Clear language protects everyone, establishes roles, and lower risk. In contracts, clear wording guarantees that all participants know their roles, preventing conflicts. It also lessens misinterpretation as everyone is aware of the expectations.

Knowing who is accountable for cybersecurity contracts’ data, incidents, and security measures depends on clearly defining duties in these areas.

Clear contracts are also more enforceable. If the terms are vague, enforcing them in court is hard. Specific terms ensure that the contract will stand up in a legal dispute. Contracts should also outline who is responsible for cyber losses. If a vendor makes a mistake, the contract should hold them accountable, not the business.

To be clear, use plain language and avoid legal or technical jargon. Define obligations and key terms. Contracts should include cybersecurity clauses regarding data protection, incident response, and compliance.

Explain the scope of services to avoid misunderstandings about what services will be provided. Include terms related to data handling, such as storage duration and post-contract data management. Include a list of security standards to ensure mutual understanding. Review contracts regularly to stay up to date with new technology or regulations.

Empowering Customers With Security Awareness

Many customers worry about how businesses handle their personal information. In fact, 70% of people are worried about security. If a company has been careless or had a breach, customers will take their business elsewhere.

One way to alleviate these worries is to offer regular security awareness programs. This shows customers you take their privacy seriously and are actively working to protect their data. Security training should cover phishing, social engineering, and data breaches. The goal is to help employees and customers be aware of what to look for so they can stay safe.

Interactive training, like quizzes, exercises, or phishing simulations, is more engaging and memorable. You can also add visual elements like videos or infographics and it’s easier to get the message across.

Because cyber threats are always changing, training should be fresh and current with the latest risks. Give customers a way to share concerns or ideas for improving security. Also, businesses should recommend password managers.

Strengthening Internal Security Practices

Companies that provide internal security measures protect digital information and trust and run the business without a problem. Internal security is one of the essential requirements. It should have a blueprint plan including solid security installations, employee education, and continual improvements.

When an organization focuses on these things, it can closely monitor the chances of cyber assault and further defend confidential information.

The first step is to install robust security measures. Access control measures are one of the most basic principles. Sensitive information and systems should be made available only to those with a real need for them, and unauthorized persons should not be able to gain entry.

Technical measures are equally important: firewalls, encryption devices, intrusion prevention systems, and multi-factor authentication (MFA). The combination of these measures presents hackers with several walls to penetrate.

Frequent audits of these systems will help find and fix weaknesses before they can be accessed. They would also help with cybersecurity policy compliance and spot questionable behavior. The NIST Cybersecurity Framework can greatly aid in establishing a good cybersecurity framework.

Conclusion

NIS2 and DORA are important rules that enhance the European Union’s digital resilience and cybersecurity. While DORA directs financial services in combating digital dangers, NIS2 guards the healthcare, energy, and transportation sectors. These regulations encourage businesses to manage risks, protect data, and communicate openly with customers about their security efforts.

To address the demanding NIS2 and DORA requirements, Storware offers firms dependable, secure, and adaptable backup and recovery, ensuring data protection and business resilience.