NIS2 and DORA

NIS2 and DORA:
Source Code Escrow as an Instrument of Risk Management

According to the European NIS2 Directive (Network and Information Security Directive 2), organizations classified as operators of essential or important services are required to identify, assess, and manage risks related to their information systems and technology suppliers, and to ensure business continuity even in the event of failure of critical components or external partners.

Source code escrow is not merely a technical backup mechanism. It represents an auditable procedural control, supported by contractually defined release mechanisms, which significantly reduces the risk of prolonged system outages and helps organizations meet the requirements of NIS2 as well as related regulatory frameworks such as DORA (Digital Operational Resilience Act).

Why source code escrow is relevant for NIS2

  • The NIS2 Directive requires organizations to manage supply chain risks and to ensure that critical information systems are resilient to failures of third parties.

  • Organizations must demonstrably ensure the continuity of provided services even in unforeseen situations, including the unavailability of a software supplier.

  • It is essential to have a mechanism in place that enables the customer to access the materials necessary for the maintenance and recovery of software, even if the supplier is unable to fulfill its obligations.

  • Source code escrow makes it possible to create evidence of the existence and controllability of such a mechanism during regulatory inspections and audits.

  • As a result, organizations can demonstrate active and measurable management of technological risk within the compliance process, rather than merely a formal policy.

How source code escrow works within the framework of NIS2 / DORA

1. Supply chain risk management

When critical software depends on an external supplier, the risk of supplier failure or termination of support can threaten operational continuity.
The escrow of source code and related materials provides a legally and procedurally safeguarded Plan B, thereby supporting compliance with supply chain risk management requirements.

2. Support for business continuity

NIS2 emphasizes that organizations must be able to restore and maintain the operation of services even after an incident or supplier outage.
Availability of the source code and technical documentation enables deployment, administration, and further development of applications independently of the original vendor.

3. Auditable governance and documentation

Source code escrow is linked to clearly defined processes and contractual mechanisms – from risk identification and regular updates to release scenarios.
This provides measurable and verifiable documentation that can be presented during audits, internal reviews, and external inspections.

4. Strengthening resilience in relation to DORA

Although DORA is specifically focused on the financial sector, its requirements for digital operational resilience complement NIS2 and jointly require robust approaches to cyber resilience and continuity.
Source code escrow is fully compatible with these principles.

5. Demonstrating technical self-sufficiency

The demonstrable ability to recover and manage one’s own information systems without dependence on a single supplier is a strong signal of technical and procedural independence, which regulators and internal governance frameworks increasingly expect.

Escrow as part of a compliance strategy

Source code escrow on its own does not guarantee complete cybersecurity, but it represents a concrete and demonstrable component of a broader risk management and business continuity strategy.
In the context of NIS2 and DORA, it serves as a strategic building block that complements the technical, organizational, and procedural requirements imposed on organizations within the EU.

Overall benefit for organizations

  • Ensuring the availability of critical software components even in the event of supplier failure

  • Increased resilience to operational incidents and technological outages

  • Auditable documentation of supplier risk management

  • Support for service continuity in line with regulatory requirements

  • Strengthening the organization’s position during audits, certifications, and regulatory inspections

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