DORA, NIS2, EU AI Act, and CMMC

DORA, NIS2, EU-AI, and CMMC refer to various regulatory frameworks and directives that aim to enhance security, accountability, and governance in different sectors. Here’s a brief overview of each:

DORA (Digital Operational Resilience Act)

DORA is a European legislative proposal that aims to strengthen the digital operational resilience of the financial sector. It establishes a comprehensive framework for managing information and communication technology (ICT) risks, ensuring that financial institutions can withstand, respond to, and recover from all types of disruptions and threats. Key aspects include:

• Risk Management: Financial entities must implement robust risk management frameworks for their ICT systems.
• Incident Reporting: Requirements to report significant ICT incidents to relevant authorities.
• Testing: Regular testing of digital operational resilience is mandated.

NIS2 (Directive on Security of Network and Information Systems)

NIS2 is an update to the original NIS Directive, aimed at enhancing cybersecurity across the EU. It expands the scope to include more sectors and introduces stricter supervisory measures. Key components include:

• Wider Scope: Applies to more entities, including medium and large companies in essential and important sectors.
• Risk Management: Establishes security requirements for network and information systems.
• Incident Notification: Obligates organisations to notify authorities of significant incidents.

EU-AI (Artificial Intelligence Act)

The EU-AI Act is a regulatory framework proposed by the European Commission to ensure that AI technology is used safely and ethically within the EU. It categorises AI systems based on risk levels and outlines requirements accordingly. Key features include:

• Risk-Based Classification: AI systems are classified into minimal, limited, high, and unacceptable risk categories.
• Compliance Requirements: High-risk AI systems face stringent requirements for transparency, accountability, and robustness.
• Prohibition of Certain AI Practices: Certain AI applications, deemed harmful, are banned.

CMMC (Cybersecurity Maturity Model Certification)

CMMC is a certification framework developed by the Department of Defense (DoD) in the United States aimed at improving the cybersecurity posture of contractors and subcontractors. It includes several maturity levels that organisations must achieve to be eligible for DoD contracts. Key elements include:

• Maturity Levels: Ranges from Level 1 (basic cyber hygiene) to Level 5 (advanced/progressive).
• Assessment: Requires third-party assessments to validate compliance levels.
• Focus on Protection: Emphasises protecting controlled unclassified information (CUI) within the supply chain.

These frameworks reflect a growing emphasis on cybersecurity, operational resilience, and responsible use of technology in various domains. Understanding these regulations is crucial for organisations operating within affected sectors, particularly in terms of compliance and risk management.

Mapping DORA, NIS2, EU-AI, and CMMC

Involves comparing and contrasting their objectives, scope, focus areas, and compliance requirements.

Here’s a structured overview to illustrate their similarities and differences:

1. Objective

• DORA: Enhance the digital operational resilience of financial entities against ICT risks.
• NIS2: Improve cybersecurity across essential and important sectors within the EU.
• EU-AI: Ensure the ethical and safe use of artificial intelligence technologies.
• CMMC: Establish a maturity model for cybersecurity practices among DoD contractors to protect sensitive information.

2. Scope

• DORA: Primarily focuses on the financial sector, including banks, insurance companies, and investment firms.
• NIS2: Covers a wide range of sectors, including energy, transport, health, and digital infrastructure, applicable to medium and large entities.
• EU-AI: Applies to all AI systems used within the EU, affecting both public and private sectors across various industries.
• CMMC: Specifically targets contractors and subcontractors working with the US Department of Defense.

3. Risk Management and Compliance

• DORA: Requires robust risk management frameworks, incident reporting, and regular resilience testing.
• NIS2: Mandates the implementation of security measures, incident notification, and risk management practices.
• EU-AI: Introduces a risk-based classification system for AI, with compliance requirements varying by risk level.
• CMMC: Enforces a tiered maturity model, requiring third-party assessments and adherence to specific security practices.

4. Key Focus Areas

• DORA: ICT risk management, operational resilience testing, and incident reporting.
• NIS2: Network and information systems security, incident response, and sector-wide coordination.
• EU-AI: Transparency, accountability, robustness of AI systems, and the prohibition of harmful AI practices.
• CMMC: Cybersecurity practices to protect controlled unclassified information (CUI) across supply chains.

5. Enforcement and Penalties

• DORA: Enforcement mechanisms through national competent authorities with potential penalties for non-compliance.
• NIS2: National authorities will enforce compliance, with penalties for significant breaches.
• EU-AI: Non-compliance can lead to fines and sanctions, with strict enforcement measures for high-risk AI systems.
• CMMC: Certification assessments dictate eligibility for contracts, with the potential for loss of contract for non-compliance.

6. Stakeholders

• DORA: Financial institutions, regulators, and ICT service providers.
• NIS2: Public administrations, essential service providers, and digital service providers.
• EU-AI: AI developers, users, and regulatory bodies.
• CMMC: DoD contractors, subcontractors, and cybersecurity assessors.

Summary

The mapping of DORA, NIS2, EU-AI, and CMMC highlights a common theme of enhancing security and resilience in the face of evolving threats and technologies. Each framework addresses specific sectors and risks, reflecting the increasing importance of regulatory compliance in maintaining operational integrity and security across diverse industries. Understanding these frameworks is essential for organisations seeking to navigate the complex landscape of compliance and risk management.