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NIS2, DORA,ISO 27001: Compliance as a Competitive Edge in Serving Regulated Sectors

NIS2, DORA,ISO 27001: Compliance as a Competitive Edge in Serving Regulated Sectors
Companies must prioritize trust and robust data protection to thrive as industries face rising compliance demands. (AdobeStock)

Companies must prioritize trust and robust data protection to thrive as industries face rising compliance demands. The evolving regulatory landscape in Europe highlights the critical role of frameworks like ISO 27001, NIS2, and DORA in helping organizations meet these challenges, according to Hannah Haviland Gröndahl, General Counsel at Netigate, a leading European customer and employee experience management SaaS solutions provider.

For decades, software providers like ourselves have worked alongside customers in some of Europe’s most highly regulated sectors—banking, insurance, energy, and the public sector. These industries, which handle vast amounts of sensitive data, demand rigorous adherence to regulations governing cybersecurity, privacy, and operational resilience. While not directly regulated, third-party vendors play a crucial role in ensuring that their customers meet these standards while safeguarding valuable data.

The regulatory landscape is evolving rapidly, and the baseline for compliance continues to rise. Two of the most significant frameworks reshaping the conversation are the EU’s NIS2 Directive and the Digital Operational Resilience Act (DORA). These regulations, combined with the already well-established GDPR, are challenging organizations—and their third-party vendors—to operate at a higher level of security, resilience, and accountability.

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Navigating the Evolving Regulatory Environment

NIS2 is the new version of the Network and Information Systems Directive, applicable across critical sectors such as energy, telecoms, ICT systems, and cloud computing. It harmonizes cybersecurity requirements, sets standards for incident reporting, and imposes governance obligations on digital entities. Although EU member states were expected to transpose NIS2 into national law by October 2024, delays mean we may not see national legislation until late 2025. Importantly, the directive is already applicable in countries without national laws.

DORA, set to apply in January 2025, addresses operational resilience in the financial sector, particularly in relation to third-party vendors. Financial entities must assess, monitor, and test their vendors’ systems to mitigate risks arising from digital incidents. This places added pressure on software providers, as customers require more detailed documentation and faster responses to queries regarding compliance.

Anchoring Compliance With ISO 27001

GDPR, NIS2, and DORA are not merely regulatory checkboxes—they form the foundation of how organizations protect customer data. ISO 27001 certification provides a risk-based framework necessary to meet the stringent requirements of these regulations. From governance policies to incident reporting and employee training, ISO 27001 aligns seamlessly with NIS2’s directives.

Organizations aiming to stay ahead of the curve should consider adopting the newest ISO 27001 standard, further strengthening compliance measures. Internally, having a dedicated Privacy & Security Committee with technical and legal leadership ensures that cybersecurity and privacy remain top priorities. Externally, offering transparency through tools like Trust Centers, which detail encryption practices, continuity plans, and AI policies, can bolster customer confidence.

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Supporting Regulated Customers

Working with regulated customers often means navigating additional complexities. For example, a German bank might use a customer experience (CX) platform to assess how their latest app launch is performing. This requires collecting and analyzing data from diverse sources—support calls, Google reviews, TrustPilot, and more. The insights gained must be actionable, timely, and compliant with GDPR and DORA.

Similarly, a Nordic energy company might rely on an employee experience (EX) platform to conduct pulse surveys across a geographically dispersed workforce. With employees in multiple countries, the company must adhere to GDPR and the NIS2 directive, ensuring that every data collection and processing activity aligns with these stringent standards.

While the increasing complexity of regulations like NIS2 and DORA introduces short-term costs, rising standardisation may eventually streamline compliance for both regulated entities and their vendors. By investing in certifications like ISO 27001 and maintaining robust internal and external processes, organizations can meet today’s regulatory requirements and prepare for tomorrow’s challenges.

As regulations evolve, the stakes are higher, but so are the opportunities. In an environment where trust and compliance are paramount, third-party vendors and regulated entities alike can turn compliance into a competitive edge.

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