7 Tips for Startups: How DORA and NIR2 Can Fortify Your Cybersecurity in 2025
In 2025, startups face lots of cyber threats that can jeopardize their operations and reputation. Ensuring robust cybersecurity is no longer a luxury but a necessity. Enter the Digital Operational Resilience Act (DORA) and the NIR2 Directive—two significant regulations that aim to enhance cybersecurity and operational resilience across the board. This article sheds light on these regulations and provides essential tips for startup owners to bolster their cybersecurity measures.
The 2025 Cybersecurity Landscape for Startups
Startups often grapple with unique cybersecurity challenges. Limited resources, lack of in-house expertise, and the ever-evolving nature of cyber threats make it difficult for new businesses to protect their sensitive data effectively. Recent statistics reveal a troubling trend: cyber attacks targeting startups are on the rise, with many businesses experiencing data breaches, ransomware attacks, and phishing attempts.
A quick glimpse at recent findings from Statista on data breach costs across industries reveals that, between March 2022 and February 2024, the healthcare sector experienced the highest average cost, reaching approximately $9.77 million per breach. The financial sector ranked second, with an average of $6.08 million per breach. Overall, the global average cost of a data breach during this period was $4.88 million.
Introduction to DORA and NIR2 Regulations
To address these challenges, the European Union has introduced the Digital Operational Resilience Act (DORA) and the NIR2 Directive. DORA, set to apply from 17 January 2025, focuses on ensuring that financial entities and their third-party service providers can withstand, respond to, and recover from cyber threats. Key requirements include robust ICT risk management frameworks, incident reporting, and third-party risk management.
The NIR2 Directive, which came into force in 2023, aims to improve the cybersecurity of critical infrastructure sectors by mandating stringent security measures and reporting obligations. This directive emphasizes the importance of operational resilience and incident response capabilities. According to Cyberdefence, over 150,000 businesses across Europe have had to comply with the directive so far.
How Do These Regulations Impact Startups?
The introduction of DORA and the NIR2 Directive presents both opportunities and challenges for startups. On the positive side, these regulations promote a higher standard of cybersecurity, which can help startups protect their data and build trust with customers and investors. However, compliance with these regulations may require significant investment in security measures and resources, which can be challenging for startups with limited budgets.
7 Tips for Enhancing Cybersecurity in Startups
To navigate these regulatory waters and enhance your startup's cybersecurity posture, consider implementing the following tips:
Implement Multi-Factor Authentication (MFA): MFA adds an extra layer of security by requiring users to provide multiple forms of verification. This reduces the risk of unauthorized access to sensitive data.
Regularly Update and Patch Software: Ensure that all software and systems are up-to-date with the latest security patches, safeguard business web applications. This helps protect against known vulnerabilities that cybercriminals can exploit.
Conduct Regular Security Audits and Risk Assessments: Regularly assess your startup's security posture to identify potential threats and vulnerabilities. Address any issues promptly to mitigate risks.
Train Employees on Cybersecurity Best Practices: Provide comprehensive cybersecurity training for all employees to raise awareness and reduce the risk of human error. Topics should include recognizing phishing attempts, safe browsing habits, and secure password practices.
Use Encryption to Protect Sensitive Data: Encrypt data both in transit and at rest to prevent unauthorized access. Encryption ensures that even if data is intercepted, it remains unreadable to attackers. Employing anti-phishing software will help a great deal too.
Develop an Incident Response Plan: Create a detailed incident response plan that outlines the steps to take in the event of a cyber attack. This plan should include communication protocols, containment strategies, and recovery procedures.
Ensure Compliance with DORA and NIR2: Familiarize yourself with the specific requirements of DORA and the NIR2 Directive. Implement the necessary measures to comply with these regulations, such as adopting robust ICT risk management frameworks and third-party risk management practices.
Final thought
In conclusion, the DORA and NIR2 regulations represent a significant step towards improving cybersecurity and operational resilience for businesses, including startups. By understanding these regulations and implementing best practices, startup owners can better protect their organizations from cyber threats and ensure regulatory compliance. Prioritizing cybersecurity is not just about avoiding penalties—it's about safeguarding your startup's future and building trust with your stakeholders.
Remember, robust cybersecurity practices are an investment in your startup's longevity and success. Don't wait until it's too late. Contact Erbis so we can take proactive steps today to enhance your security measures and comply with the latest regulations.
FAQ: DORA, NIR2, and Cybersecurity for Startups in 2025
DORA (Digital Operational Resilience Act) is an EU regulation effective from January 17, 2025, aimed at ensuring that financial entities and their third-party providers can withstand, respond to, and recover from cyber threats. The NIR2 Directive, effective since 2023, strengthens cybersecurity requirements for critical infrastructure sectors by mandating security measures and reporting obligations.
Both regulations set a higher bar for cybersecurity and operational resilience. Startups benefit by improving their protection against cyber threats, building trust with customers and investors, and ensuring compliance with EU standards—critical for business continuity and reputation.
Compliance depends on your sector and location. DORA primarily targets financial entities and their ICT providers, while NIR2 covers a broader range of critical infrastructure sectors. If your startup operates in or serves these sectors within the EU, compliance is mandatory.
Key requirements include: 1. Implementing robust ICT risk management frameworks. 2. Regular incident reporting. 3. Managing third-party ICT risks. 4. Ensuring operational resilience and rapid recovery from cyber incidents.
NIR2 requires startups in critical sectors to: 1. Strengthen cybersecurity measures. 2. Report significant incidents promptly. 3. Develop operational resilience and incident response capabilities.
1. Implement Multi-Factor Authentication (MFA). 2. Regularly update and patch software. 3. Conduct security audits and risk assessments. 4. Train employees on cybersecurity best practices. 5. Use encryption for sensitive data. 6. Develop an incident response plan. 7. Ensure compliance with DORA and NIR2 requirements.
Startups should prioritize high-impact, cost-effective measures such as employee training, MFA, and regular software updates. Leveraging managed security services and scalable cloud solutions can also help achieve compliance without overextending resources.
Non-compliance can lead to regulatory fines, increased risk of cyber incidents, loss of customer trust, and potential business disruption. Proactive compliance not only avoids penalties but also strengthens your startup’s market position.
Consult with cybersecurity experts or managed service providers who specialize in EU regulations. Many offer tailored solutions for startups to help you assess risks, implement required measures, and ensure ongoing compliance.
