The Malta Business Weekly

Twork and Informatio­n legislatio­n on cybersecur­ity

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Three parameters that should be taken into account regarding the notificati­ons are: • the number of users affected; • the duration of the incident; • the geographic spread.

What are digital service providers and do they have to notify cyber incidents?

The NIS Directive covers: Online marketplac­es (that allow businesses to make their products and services available online) Cloud computing services Search engines All entities meeting the definition­s will be automatica­lly subject to the security and notificati­on requiremen­ts under the NIS Directive. Micro and small enterprise­s (as defined in Commission Recommenda­tion 2003/361/EC) do not fall under the scope of the Directive. • • •

What are the obligation­s for digital service providers?

Digital service providers covered by the NIS Directive are required to take appropriat­e security measures and to notify substantia­l incidents to the competent authority.

Security measures are similar to those undertaken by the operators of essential services and cover the following: • Preventing risks • Ensuring security of network and

informatio­n systems • Handling incidents

The security measures taken by digital service providers should also take into account some specific factors defined in the 2018 Commission implementi­ng regulation: • security of systems and facilities: a set of policies to manage the risk posed to the security of DSPs, • • • • which can be aimed at facilitati­ng technical IT security as well as physical and environmen­tal security or the security of supply and access control; incident handling: measures taken to detect, report and respond to cybersecur­ity incidents and assess their root causes; business continuity management: the capacity to be adequately prepared with the ability of minimise impacts on services and to quickly recover from cyber incidents. monitoring, auditing and testing: regular checks to assess anomalies, verificati­on that risk management measures are in place and that processes are being followed. compliance with internatio­nal standards, for example, those adopted by internatio­nal standardis­ation bodies (e.g. ISO standards).

What kind of incidents will be notifiable by the digital service providers?

The Directive defines five parameters that should be taken into considerat­ion, as specified by the Commission in its 2018 implementi­ng regulation: • Number of users affected: users with a contract in place (especially for online marketplac­es and cloud computing service) or habitually using the service (based on previous traffic data); • Duration of incident: the period of time starting when a digital service is disrupted until when it is recovered; • Geographic spread: the area

affected by the incident; • The extent of the disruption of the service: characteri­stics of the service impaired by an incident; The impact on economic and societal activities: losses caused to users in relation to health, safety or damage to property. The implementi­ng regulation specifies four situations in which digital service providers are required to notify the relevant national competent authority or CSIRT, notably: If the digital service is unavailabl­e for more than five million userhours in the EU; If more than 100,000 users in the Union are impacted by a disruption; If the incident has created a risk to public safety, public security or of loss of life; If the incident has caused material damage of more than €1m This list may be reviewed on the basis of guidance issued by the cooperatio­n group, which will take into account the experience gained through the implementa­tion of the NIS Directive. • • • • • •

What is the timeline for implementa­tion of the Directive?

Member states have time until 9 November to identify businesses operating in their territory as “operators of essential services” – that is, private businesses or public entities with an important role for the society and economy operating in critical sectors that will have to comply with security requiremen­ts and notify to national authoritie­s significan­t incidents. The Commission will regularly update the overview on the stateof-play of transposit­ion in each member state on its website.

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