What It Is

NIST Cybersecurity Framework 2.0 (CSF 2.0) is a voluntary, risk-based guideline developed by NIST for managing cybersecurity risks. It provides a flexible structure applicable to organizations of all sizes and sectors, emphasizing outcomes over prescriptive controls through its Core, Tiers, and Profiles.

Key Components

• **Six Core FunctionsGovern (new), Identify, Protect, Detect, Respond, Recover, organized into categories and 112 subcategories.
• **Implementation TiersFour levels (Partial to Adaptive) for assessing risk management sophistication.
• **Framework ProfilesCurrent vs. Target for gap analysis.
• No formal certification; self-attestation with informative references to standards like ISO 27001.

Why Organizations Use It

Enhances risk prioritization, board communication, supply chain management, and compliance demonstration. Builds stakeholder trust, supports insurance discounts, and aligns cybersecurity with enterprise risk. Widely adopted for its common language and adaptability.

Implementation Overview

Start with Current Profile assessment, identify gaps to Target Profile, prioritize via Tiers. Suited for all sizes/industries globally; involves policy development, training, monitoring. No mandatory audits, but tooling and consultants accelerate for SMEs.

What It Is

Basel III is the international regulatory framework issued by the Basel Committee on Banking Supervision (BCBS) post-global financial crisis. It strengthens bank prudential standards through a risk-based approach focusing on capital quality, leverage constraints, and liquidity resilience for individual and systemic stability.

Key Components

• **Three PillarsPillar 1 (minimum capital, leverage, LCR/NSFR ratios); Pillar 2 (supervisory review/ICAAP); Pillar 3 (disclosures for market discipline).
• Core elements: CET1 (4.5%), Tier 1 (6%), Total capital (8%), 2.5% conservation buffer, 3% leverage ratio, LCR/NSFR ≥100%.
• Built on revised RWA calculations, output floor, and standardized approaches.
• Compliance via national implementation, no central certification.

Why Organizations Use It

• Mandatory for internationally active banks to meet global minimums and avoid enforcement.
• Enhances resilience, reduces model risk, improves comparability.
• Drives strategic balance-sheet optimization, stakeholder trust, lower funding costs.

Implementation Overview

• Phased enterprise transformation: gap analysis, data/IT upgrades, governance, parallel testing.
• Applies to large banks globally; involves QIS, ICAAP, Pillar 3 reporting.
• High complexity, multi-year timelines per jurisdiction.