As regulations increase and become more intricate, organizations operating within the European Union must address the General Data Protection Regulation (GDPR) and the Network and Information Systems Directive 2 (NIS2). The complexity arises because these regulations not only cover overlapping areas like data protection, privacy, and cybersecurity but also require specific compliance measures that can be challenging to integrate. For example, GDPR mandates strict data protection protocols with severe penalties for breaches, while NIS2 focuses on improving the cybersecurity of critical infrastructure, imposing requirements for risk management and incident reporting. According to a 2023 report by the European Commission, 72% of organizations in the EU found navigating these regulations challenging due to their complexity and the need for comprehensive strategies to ensure compliance with both data protection and network security mandates.
Understanding NIS2 and GDPR
NIS2, which updates the original NIS Directive, is designed to strengthen the cybersecurity and resilience of critical infrastructure across the EU. The directive affects approximately 150,000 large and medium-sized companies, including operators of essential services and providers of digital services. Unlike its predecessor, NIS2 broadens its scope, covering a wider range of sectors such as energy, transportation, banking, healthcare, and digital services. The directive imposes stringent requirements on risk management, incident handling, and business continuity, strongly emphasizing incident reporting and supply chain security.
GDPR, implemented in 2018, focuses on data protection and privacy for individuals within the EU. It mandates that organizations protect personal data through rigorous security measures and transparency in data handling. GDPR requires timely breach notifications to data protection authorities and affected individuals, emphasizing the importance of safeguarding personal information and maintaining data integrity.
Intersection and synergies
The intersection between GDPR and NIS2 is significant, as both frameworks aim to protect sensitive information from slightly different perspectives:
- Incident Reporting: Both GDPR and NIS2 mandate that organizations report breaches, albeit with different specifics. GDPR requires a notification to data protection authorities within 72 hours of detecting a breach, and affected individuals must be informed if the breach poses a high risk. NIS2 requires preliminary incident reports within 24 hours and detailed reports within 72 hours. To ensure comprehensive compliance, organizations should integrate their incident reporting processes to address both regulations’ requirements effectively.
- Risk Management and Security Measures: GDPR requires organizations to implement appropriate technical and organizational measures to protect personal data, which aligns with NIS2’s broader cybersecurity mandates. By adopting a unified risk management framework that addresses both GDPR’s data protection requirements and NIS2’s cybersecurity measures, organizations can enhance their overall resilience and ensure compliance with both frameworks.
- Business Continuity: NIS2 emphasizes the importance of business continuity planning and supply chain security, which can also support GDPR compliance. Effective business continuity plans should include measures to protect personal data and ensure data recovery during an incident. Integrating these aspects into a cohesive strategy can help organizations meet GDPR and NIS2 requirements.
Potential conflicts
Despite their synergies, conflicts may arise when complying with GDPR and NIS2:
- Scope of Application: GDPR specifically addresses personal data, while NIS2 covers broader network and information systems security. Organizations may face challenges in delineating responsibilities and ensuring compliance across different areas. Clear delineation of duties and an integrated approach to compliance can help address these challenges.
- Resource Allocation: Meeting the requirements of both GDPR and NIS2 can be resource-intensive. Organizations must allocate resources effectively to address both data protection and cybersecurity needs without duplication or gaps. Strategic planning and prioritization can help manage resource allocation efficiently.
- Incident Reporting Timelines: Aligning GDPR’s 72-hour breach notification requirement with NIS2’s reporting timelines can be complex. Developing an integrated incident response plan that addresses both sets of requirements is essential for ensuring timely and accurate reporting.
Creating cohesive compliance strategies
To navigate the overlapping domains of GDPR and NIS2, organizations should consider the following strategies:
- Develop an Integrated Compliance Framework: Establish a unified compliance strategy addressing GDPR and NIS2 requirements. This involves aligning data protection practices with cybersecurity measures and integrating incident response plans to ensure comprehensive coverage of both regulations.
- Conduct Regular Audits and Assessments: Regularly audit and assess compliance with both GDPR and NIS2 to identify potential conflicts or gaps. Proactive audits help organizations stay ahead of regulatory changes and ensure ongoing alignment with evolving requirements.
- Invest in Training and Awareness: Provide staff training on GDPR and NIS2 requirements. Ensuring that employees understand the intersection of data protection and cybersecurity can enhance overall compliance efforts and foster a culture of security awareness.
- Collaborate with Legal and IT Experts: Engage with legal and cybersecurity experts to navigate complex compliance issues. Their insights can guide the development of strategies that effectively balance GDPR and NIS2 requirements and address potential conflicts.
Leveraging vendor solutions
Organizations can benefit from solutions offered by vendors such as Checkmarx and Teleport to support compliance with both GDPR and NIS2:
Checkmarx offers application security solutions that help identify and address software vulnerabilities, aligning with NIS2’s focus on secure software development. Additionally, Checkmarx provides training and resources to enhance staff cybersecurity knowledge, which is essential for meeting GDPR and NIS2 requirements.
Teleport provides secure access solutions and zero-trust architecture, which can enhance network security and support NIS2’s incident response requirements. Its tools also facilitate effective incident detection and response, aligning with GDPR’s breach notification mandates.
Staying ahead of NIS2 and GDPR compliance
Navigating compliance with GDPR and NIS2 can be challenging, requiring substantial investments in cybersecurity infrastructure, training, and resources. The stringent demands of NIS2 and the ongoing requirements of GDPR underscore the importance of strong cybersecurity practices and management involvement. Failing to comply can result in significant penalties and personal liabilities for senior management, making it crucial for organizations operating in the EU to stay informed and proactive.
Organizations can achieve robust data privacy and network security by leveraging the right tools and strategies and integrating the requirements of GDPR and NIS2. Vendors like Checkmarx and Teleport can be vital in supporting this effort, providing high-level security solutions and expertise to navigate the complex regulatory landscape.
To know how organizations can navigate NIS2 better, read our article that details about the regulation, various challenges organizations face, and steps to overcome them.