Incident Response Requirements for NIS2, GDPR, and DORA

Cybersecurity incidents, including data breaches, ransomware attacks, and operational disruptions, pose significant risks to organisations and the wider economy. Recognising this, regulatory frameworks such as the NIS2 Directive, General Data Protection Regulation (GDPR), and Digital Operational Resilience Act (DORA) impose strict requirements on organisations to prepare for, detect, respond to, and report incidents effectively.

This article provides a comprehensive overview of incident response requirements under these three regulations, including key obligations, reporting timelines, and best practices for ensuring compliance.

1. Overview of Regulatory Requirements

1.1. NIS2 Directive (Network and Information Security Directive)

The NIS2 Directive, adopted in 2022, applies to critical and important infrastructure across the EU, including sectors such as energy, healthcare, transport, and digital infrastructure. It aims to enhance the resilience of essential services by requiring organisations to strengthen their cybersecurity capabilities, including incident response.

Key NIS2 requirements include:

• Implementation of incident response plans.

• Continuous monitoring for security events.

• Reporting significant incidents to national authorities within 24 hours.

• Submission of detailed incident reports within 72 hours.

1.2. General Data Protection Regulation (GDPR)

The GDPR governs the protection of personal data across the EU and applies to organisations that process or control such data. The regulation requires organisations to take appropriate measures to safeguard personal data and respond to data breaches.

Key GDPR requirements include:

• Implementation of data breach response procedures.

• Notification of supervisory authorities within 72 hours of becoming aware of a breach involving personal data.

• Notification of affected individuals if the breach poses a high risk to their rights and freedoms.

1.3. Digital Operational Resilience Act (DORA)

The Digital Operational Resilience Act (DORA) applies to financial institutions and ICT service providers within the EU. Its objective is to strengthen the financial sector's ability to withstand and recover from cyber incidents and operational failures.

Key DORA requirements include:

• Establishment of incident detection and response frameworks.

• Notification of national regulators within 24 hours of discovering a major ICT incident.

• Ongoing resilience testing through scenario-based exercises.

• Reporting detailed findings and corrective actions.

2. Incident Response Requirements in Detail

Although NIS2, GDPR, and DORA have different scopes, their incident response requirements share several core components: preparation, detection, response, reporting, and post-incident review.

2.1. Preparation and Planning

All three regulations emphasise the need for organisations to prepare for incidents by establishing robust incident response frameworks.

Key Requirements:

• Develop and maintain an Incident Response Plan (IRP).

• Define roles and responsibilities for handling incidents, including escalation procedures.

• Conduct regular training and simulations (e.g., tabletop exercises) to ensure teams are prepared to respond.

How Each Regulation Approaches Preparation:

• NIS2: Requires organisations to include incident response as part of their risk management strategy.

• GDPR: Mandates that organisations implement technical and organisational measures to protect personal data.

• DORA: Focuses on scenario-based testing and ongoing resilience assessments to ensure operational continuity.

2.2. Incident Detection and Monitoring

Early detection of incidents is critical for minimising damage. Regulations require organisations to implement monitoring systems that provide real-time visibility into their ICT environments.

Key Requirements:

• Deploy Security Information and Event Management (SIEM) solutions and Intrusion Detection Systems (IDS) to detect anomalies.

• Establish mechanisms to identify and categorise incidents based on severity and impact.

How Each Regulation Approaches Detection:

• NIS2: Mandates continuous monitoring to detect and assess incidents affecting essential services.

• GDPR: Requires organisations to detect breaches that compromise personal data.

• DORA: Focuses on the early detection of ICT-related incidents that could disrupt financial services.

2.3. Incident Response and Containment

Once an incident is detected, organisations must take immediate steps to contain the threat, minimise damage, and prevent further compromise.

Key Requirements:

• Implement containment strategies, such as isolating affected systems.

• Notify internal stakeholders, including senior management and legal advisors.

• Coordinate with external partners, such as incident response providers and law enforcement, if necessary.

How Each Regulation Approaches Response:

• NIS2: Requires coordinated response measures to ensure the continuity of essential services.

• GDPR: Emphasises the need to limit the impact of breaches on data subjects.

• DORA: Focuses on mitigating operational disruptions and preventing contagion across the financial ecosystem.

2.4. Incident Reporting and Communication

Timely reporting of incidents to regulatory authorities is a critical compliance requirement. Organisations must provide both initial notifications and follow-up reports that include detailed information about the incident and mitigation measures.

Reporting Timelines:

• NIS2: Initial notification within 24 hours, full report within 72 hours.

• GDPR: Notification to supervisory authorities within 72 hours of becoming aware of a data breach.

• DORA: Initial notification within 24 hours, followed by ongoing updates and a detailed post-incident report.

Required Report Contents:

• Description of the incident (e.g., type, scope, and affected systems).

• Impact assessment (e.g., data loss, operational disruption).

• Actions taken to mitigate the incident.

• Lessons learned and preventive measures.

Failure to meet reporting deadlines can result in regulatory penalties, including fines and reputational damage.

2.5. Post-Incident Review and Improvement

Following the resolution of an incident, organisations are required to conduct post-incident reviews to identify root causes and implement improvements.

Key Requirements:

• Perform a root cause analysis to determine how the incident occurred.

• Update incident response plans and security measures based on lessons learned.

• Report findings to regulatory authorities and internal stakeholders.

How Each Regulation Approaches Post-Incident Reviews:

• NIS2: Requires organisations to document incidents and share lessons learned with national authorities.

• GDPR: Emphasises continuous improvement of security measures to prevent future breaches.

• DORA: Focuses on enhancing operational resilience through post-incident reviews and corrective actions.

3. Compliance Challenges and Solutions

Implementing effective incident response procedures can be challenging, especially for organisations with limited resources or fragmented ICT environments. Common challenges include:

3.1. Managing Complex Regulatory Requirements

Organisations subject to multiple regulations (e.g., NIS2, GDPR, DORA) may struggle to align their incident response efforts with differing reporting timelines and requirements.

Solution:
Develop a unified incident response framework that incorporates the requirements of all relevant regulations. Automation tools can help streamline reporting processes and ensure timely compliance.

3.2. Ensuring Real-Time Visibility and Detection

Many organisations lack the necessary tools and expertise to detect incidents quickly, leading to delayed responses and increased risk.

Solution:
Implement advanced monitoring solutions, such as SOC as a Service, to provide continuous visibility into security events. Regular threat intelligence updates can also improve detection capabilities.

3.3. Coordinating Incident Response Across Teams

Effective incident response requires collaboration between IT, legal, risk management, and executive teams. Poor communication can hinder response efforts.

Solution:
Establish clear communication protocols and escalation paths as part of the incident response plan. Regular training exercises can improve coordination and response times.

4. Best Practices for Incident Response Compliance

1. Develop a Comprehensive IRP:
   Ensure that the incident response plan addresses all regulatory requirements, including detection, containment, reporting, and post-incident review.

2. Perform Regular Testing:
   Conduct scenario-based exercises to test the organisation’s readiness to handle different types of incidents.

3. Automate Reporting Processes:
   Use compliance automation tools to generate and submit incident reports within required timeframes.

4. Engage External Experts:
   Partner with cybersecurity providers, such as a virtual CISO or SOC as a Service, to enhance incident response capabilities.

5. Conclusion

Incident response is a critical component of compliance with NIS2, GDPR, and DORA. By implementing robust incident detection, response, and reporting processes, organisations can minimise the impact of cyber incidents, maintain regulatory compliance, and protect their operations and data. Proactive planning, continuous monitoring, and regular testing are essential to building a resilient cybersecurity programme.

For assistance with incident response planning, compliance audits, or security operations, contact our cybersecurity experts today.