The opinions expressed here are those of the authors. They do not necessarily reflect the views or positions of UK Finance or its members.

This bill aims to bolster the UK's cybersecurity framework, ensuring robust protection for critical infrastructure and businesses in an increasingly digital world.

Expanding the scope of protection:

The CS&R Bill is set to expand the scope of cybersecurity regulation beyond the current five sectors covered by the NIS Regulations. This aligns with NIS2, which includes 18 sectors, encompassing critical industries like wastewater management, postal services, and even the space industry. This broader scope reflects the evolving nature of cyber threats and the need to protect a wider range of critical services. The UK government has already classified UK Data Centres as 'Critical National Infrastructure,' demonstrating a commitment to safeguarding digital infrastructure. This expanded scope ensures the UK remains vigilant in protecting its key industries from cyber-attacks.

Accelerating incident reporting:

Both the CS&R Bill and NIS2 aim to shorten incident reporting timelines, particularly for critical entities. The UK government is likely to mandate increased incident reporting, potentially requiring reports within 24 hours of detecting a "significant" cybersecurity incident. This mirrors NIS2's stricter reporting requirements and emphasises the importance of timely responses to cyber threats. By ensuring rapid reporting, the UK aims to minimise the impact of cyber incidents and facilitate quicker recovery processes. This proactive approach to incident management is crucial in today's fast-paced digital landscape.

Strengthening regulatory oversight and enforcement:

The CS&R Bill is expected to grant regulators greater powers to ensure compliance with cybersecurity measures, similar to NIS2's enhanced supervisory framework. This includes the ability to conduct audits and investigations, providing regulators with the tools needed to enforce cybersecurity standards effectively. The UK government is also considering cost-recovery mechanisms, potentially leading to larger fines for non-compliance, mirroring NIS2's substantial penalties. By imposing significant fines, the UK aims to deter non-compliance and encourage businesses to prioritise cybersecurity investments. This robust regulatory framework ensures that organisations remain accountable for their cybersecurity practices.

Adopting robust cybersecurity standards:

The CS&R Bill is likely to adopt similar cybersecurity standards to NIS2, including policies on risk analysis, incident handling, supply chain security, and cybersecurity training. The UK government's 2022 consultation on cybersecurity emphasised the importance of robust cybersecurity practices, suggesting a focus on these areas. By aligning with NIS2 standards, the UK aims to create a cohesive approach to cybersecurity across Europe. This alignment facilitates cross-border cooperation and enhances the overall resilience of critical infrastructure. Furthermore, emphasising cybersecurity training ensures that organisations have the necessary skills to detect and mitigate cyber threats effectively.

A fusion approach to digital resilience:

While the UK will not directly adopt NIS2, the CS&R Bill is expected to share many of its core principles. This reflects a shared concern between the UK and EU to effectively manage and mitigate cyber threats. The UK's Bill is likely to take a fusion approach, incorporating elements of NIS2 and DORA while also reflecting UK-specific priorities. Businesses operating in the UK should closely monitor these developments and review their cybersecurity practices to ensure compliance with the new regulations. The UK's cybersecurity landscape is evolving rapidly, and staying ahead of the curve is crucial for protecting businesses and critical infrastructure.