NIS2
EU directive for high cybersecurity across critical sectors
GLBA
US law for financial privacy notices and data safeguards
Quick Verdict
NIS2 mandates EU-wide cybersecurity resilience for critical sectors, while GLBA enforces US financial privacy protections for NPI. Companies adopt NIS2 for regulatory compliance and infrastructure security, GLBA to safeguard consumer data and avoid FTC penalties.
NIS2
Directive (EU) 2022/2555 (NIS2)
Key Features
- Expands scope via size-cap rule for medium/large entities
- Mandates strict 24/72-hour multi-stage incident reporting
- Enforces direct senior management accountability
- Requires continuous risk management and supply chain security
- Imposes fines up to 2% of global annual turnover
GLBA
Gramm-Leach-Bliley Act (GLBA)
Key Features
- Privacy notices and opt-out rights for NPI sharing
- Comprehensive Safeguards Rule security program
- Qualified Individual designation and board reporting
- 30-day FTC breach notification for 500+ consumers
- Broad financial institution definition including non-banks
Detailed Analysis
A comprehensive look at the specific requirements, scope, and impact of each standard.
NIS2 Details
What It Is
NIS2, officially Directive (EU) 2022/2555, is an EU regulation expanding the original NIS Directive to achieve a high common level of cybersecurity resilience across member states. It targets essential and important entities in critical sectors using a proactive, risk-based approach with continuous assurance.
Key Components
- Four pillars: risk management, incident reporting, business continuity, corporate accountability.
- Strict reporting: 24-hour early warning, 72-hour notification, one-month final report.
- Leverages standards like ISO 27001, NIST CSF; features spot checks, no formal certification but enforced compliance.
Why Organizations Use It
Essential for legal compliance amid fines up to 2% global turnover or €10M. Enhances cyber resilience, protects critical infrastructure, builds stakeholder trust, ensures business continuity, and provides competitive edge in EU markets.
Implementation Overview
Applies to medium/large entities (50+ employees, €10M+ turnover) in sectors like energy, transport, digital services. Involves risk assessments, supply chain security, training, governance. EU states transpose by October 2024; requires ongoing audits and adaptation.
GLBA Details
What It Is
The Gramm-Leach-Bliley Act (GLBA) is a US federal law enacted in 1999, establishing privacy and security standards for financial institutions handling nonpublic personal information (NPI). Its primary purpose is to ensure transparency in data-sharing practices and robust protection of consumer financial data through a risk-based approach.
Key Components
- Privacy Rule (16 C.F.R. Part 313): Mandates initial/annual notices and opt-out rights for nonaffiliated third-party sharing.
- Safeguards Rule (16 C.F.R. Part 314): Requires a comprehensive written information security program with administrative, technical, and physical safeguards, including risk assessments and vendor oversight.
- **Pretexting ProvisionsProhibits obtaining NPI under false pretenses. Built on risk-based governance; compliance via FTC enforcement for non-banks, no formal certification.
Why Organizations Use It
- Legal compliance for covered financial institutions (broad scope: banks, lenders, tax firms).
- Mitigates enforcement risks (fines up to $100K/violation).
- Enhances customer trust, operational resilience, and vendor management.
Implementation Overview
Phased approach: scoping, risk assessment, policy development, technical controls, testing. Applies to US financial entities of all sizes; involves audits, board reporting, no external certification.
Key Differences
| Aspect | NIS2 | GLBA |
|---|---|---|
| Scope | Cybersecurity resilience for critical infrastructure and digital services | Privacy and security of consumer financial information (NPI) |
| Industry | Essential/important entities across EU sectors (energy, transport, etc.) | Financial institutions (broad: banks, lenders, tax preparers) in US |
| Nature | Mandatory EU directive with national transposition and fines | Mandatory US federal law enforced by FTC and banking regulators |
| Testing | Risk assessments, supply chain security, continuous monitoring | Penetration testing, vulnerability scans, annual risk assessments |
| Penalties | Up to 2% global turnover or €10M for essential entities | Up to $100K per violation, criminal penalties up to 5 years |
Scope
Industry
Nature
Testing
Penalties
Frequently Asked Questions
Common questions about NIS2 and GLBA
NIS2 FAQ
GLBA FAQ
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