The NIS 2 Directive (Network and Information Security Directive) and the General Data Protection Regulation (GDPR) are two central pillars of digital legislation in the European Union. Both aim to ensure the security and protection of personal data but with different focuses. While the GDPR concentrates on the protection of privacy and the processing of personal data, NIS 2 is directed at the security of networks and information systems across the EU, particularly in critical sectors.
The question of how these two legal provisions are interconnected and what challenges they bring for companies is of crucial importance for organizations that need to ensure both data protection and IT security. In this article, we take a comprehensive look at the relationship between NIS 2 and the GDPR, and how companies can effectively implement both directives.
Introduction to NIS 2 and GDPR
NIS 2 Directive – Focus on Network Security
The NIS 2 Directive was adopted by the European Union in 2022 and represents a further development of the original NIS Directive from 2016. Its goal is to ensure a high common level of security for network and information systems in the EU, especially in sectors considered critical for the functioning of society and the economy. This includes sectors such as energy, transport, healthcare, digital infrastructure, and finance. NIS 2 introduces stricter requirements for security measures and reporting obligations to prevent and manage cyberattacks.
GDPR – Protection of Personal Data
The General Data Protection Regulation (GDPR), which has been in force since May 2018, regulates the protection of personal data of EU citizens. Its aim is to harmonize data protection in the EU while strengthening citizens’ rights regarding their data. It stipulates how companies and organizations must collect, process, store, and protect personal data. A central point of the GDPR is that any data processing must be based on a lawful basis, such as consent or legitimate interest.
Differences and Overlaps between NIS 2 and GDPR
Although the NIS 2 Directive and the GDPR have different focuses, there are significant overlaps between the two regulations, especially when it comes to the protection of personal data and ensuring IT security measures.
1. Different Areas of Application
- NIS 2 aims at the security aspects of networks and information systems, particularly in critical infrastructures and essential services. Its focus is on protection against cyber threats to ensure the availability and integrity of IT systems that are central to society and the economy.
- GDPR is primarily directed at the protection of privacy and personal data. It sets out how data may be processed, who has access to this data, and what rights the affected individuals have, such as the right to erasure or the right to access their data.
2. Common Obligations in the Area of Cybersecurity
One of the central overlaps between the GDPR and NIS 2 lies in the obligation to ensure the integrity and security of the processed data. Article 32 of the GDPR requires companies to take appropriate technical and organizational measures to ensure a suitable level of protection for personal data. This includes protection against unauthorized access, data loss, or cyberattacks.
The NIS 2 Directive pursues a similar goal but with a broader scope that includes not only personal data but also other types of data and IT systems. Both directives require companies to implement effective cybersecurity measures to ensure the confidentiality, integrity, and availability of their systems.
3. Reporting Obligations for Security Incidents
Another important point of contact between NIS 2 and the GDPR is the reporting obligation for security incidents. Under the GDPR, companies must report data breaches involving personal data to the competent data protection authority within 72 hours.
The NIS 2 Directive also stipulates that companies must report security incidents, but this refers to incidents that endanger the availability and security of networks and information systems. This obligation goes beyond personal data and includes all types of cyberattacks affecting critical infrastructures.
4. Compliance Requirements and Sanctions
Both the GDPR and the NIS 2 Directive provide for significant sanctions in case of non-compliance. The GDPR imposes fines of up to 20 million euros or 4% of a company’s worldwide annual turnover, whichever is higher. These penalties concern violations of the protection of personal data.
Under NIS 2, companies can also be subjected to significant fines if they fail to implement the necessary cybersecurity measures or report serious security incidents. This shows that both the GDPR and NIS 2 foresee rigorous enforcement of security requirements.
The Role of IT Security Officers and Data Protection Officers
For companies that must comply with both NIS 2 and the GDPR, a close connection arises between the tasks of IT security officers and data protection officers. These two roles must collaborate to ensure that all aspects of data and IT security are covered.
IT Security Officers (CISO)
Within the framework of NIS 2, responsibility for the security of networks and information systems often lies with a Chief Information Security Officer (CISO) or a similar IT security officer. This person must ensure that the technical and organizational measures for cybersecurity meet the requirements of NIS 2, for example by implementing firewalls, Intrusion Detection Systems (IDS), and encryption technologies.
Data Protection Officers (DPO)
A Data Protection Officer (DPO), as required by the GDPR, focuses on the protection of personal data and compliance with data protection regulations. The DPO monitors compliance with the GDPR, assesses data protection risks, and ensures that the processing of personal data is lawful.
Collaboration of the Two Roles
In practice, the responsibilities of the CISO and DPO often overlap. For example, they must jointly ensure that the IT infrastructures meet both the security requirements of NIS 2 and the data protection requirements of the GDPR. An example would be the protection of personal data against cyberattacks, where both cybersecurity measures and data protection requirements play a role.
Challenges for Companies in Implementing NIS 2 and GDPR
Simultaneous compliance with NIS 2 and GDPR presents companies with significant challenges, especially when it comes to aligning technical, organizational, and legal requirements.
1. Different Priorities and Requirements
One of the biggest challenges for companies is that NIS 2 and GDPR have different focuses. While NIS 2 primarily aims at the availability and security of networks and systems, the GDPR concentrates on the protection of personal data and the preservation of privacy. Companies must ensure that both directives are seamlessly integrated and that no security gaps arise.
2. High Investment Costs for Security Technologies
Implementing the required security measures under NIS 2 and GDPR requires significant investments in technical solutions, such as firewalls, IDS, data encryption, but also in organizational measures like regular training and awareness programs for employees. These measures can be a financial challenge, especially for small and medium-sized enterprises (SMEs).
3. Reporting Obligations and Legal Consequences
The reporting obligations under both NIS 2 and GDPR require a robust incident response strategy. Companies must be able to quickly respond to security incidents and report them within the prescribed deadlines. At the same time, they must ensure that they meet all legal obligations to avoid high fines.
4. Ensuring Compliance Across National Borders
Since both NIS 2 and the GDPR apply in all EU member states, companies operating in multiple countries must ensure that their cybersecurity and data protection strategies are coherent in all jurisdictions. This often requires coordination between different national regulations and authorities, which increases the effort for multinational companies. Ensuring that IT and data protection policies can be applied seamlessly across borders requires careful legal review and the establishment of cross-border compliance teams.
5. Lack of Clear Distinctions Between Data Protection and Cybersecurity
One of the essential challenges is the lack of clear distinction between data protection and cybersecurity. While the GDPR places data protection and individual rights at the forefront, NIS 2 aims at broader network security and the protection of critical infrastructures. This means that companies must ensure that their measures to meet the requirements of both directives harmonize well.
For example, the cybersecurity measures taken under NIS 2 may also impact data protection. The introduction of technologies such as Intrusion Detection Systems (IDS) or monitoring systems required under NIS 2 can raise data protection issues as they may collect, process, or monitor personal data. Companies must therefore ensure that all measures taken to improve cybersecurity comply with the requirements of the GDPR.
The Advantages of Simultaneously Implementing NIS 2 and GDPR
Although simultaneous compliance with NIS 2 and GDPR can be complex, it also offers significant advantages. By implementing comprehensive cybersecurity and data protection measures, companies can not only meet regulatory requirements but also strengthen their own security infrastructure and customer trust.
1. Increased Cybersecurity and Protection Against Threats
By implementing the requirements of both NIS 2 and the GDPR, companies create a robust cybersecurity strategy that protects not only networks and systems but also the personal data of their customers and employees. This helps to minimize cyberattacks, data losses, and security incidents while simultaneously strengthening customer trust.
2. Improved Compliance and Reduction of Legal Risks
Simultaneously implementing both regulations minimizes the risk of violations and ensures that companies can respond quickly and efficiently not only to data breaches but also to cybersecurity incidents. This significantly reduces the risk of high fines and legal disputes, as both NIS 2 and the GDPR provide for significant sanctions in case of non-compliance.
3. Competitive Advantage Through Strong Security Standards
Companies that set high standards in complying with NIS 2 and the GDPR can stand out in the competition. As cybersecurity and data protection become increasingly important for consumers and business partners, compliance with these standards can be a decisive sales advantage. Organizations that can demonstrate that they prioritize both the security of their systems and the protection of personal data will be able to gain the trust of their customers and strengthen long-term business relationships.
Conclusion: NIS 2 and GDPR – A Synergistic Relationship
The NIS 2 Directive and the GDPR are two essential building blocks of European legislation in the area of cybersecurity and data protection. While NIS 2 aims at network security and the protection of critical infrastructures, the GDPR focuses on the protection of personal data and the privacy of citizens. Although both regulations have different focuses, there are numerous overlaps, particularly in the area of cybersecurity and reporting obligations for security incidents.
For companies, simultaneous compliance with both regulations presents a challenge but also offers significant advantages in terms of security, trust, and compliance. Developing a comprehensive security strategy that meets the requirements of both NIS 2 and the GDPR is crucial for long-term success and risk minimization. By investing in modern technologies, training, and collaboration between IT security officers and data protection officers, companies can ensure that they guarantee both network security and data protection at the highest level.
For companies needing support in implementing NIS 2 and GDPR, VELEVO® offers comprehensive consulting services. For more information, visit velevo.net.
0 Comments