Glossary term
XDR (Extended Detection and Response)
Also: Extended Detection and Response
A security platform that unifies telemetry across endpoint, network, identity, email and cloud, correlating signals that would otherwise be siloed across point tools. XDR is EDR plus the context to detect multi-stage attacks that a single sensor would miss.
XDR extends EDR by ingesting signals from multiple security domains (identity, email, network, cloud) and correlating them in one analytics layer. The value is in the correlation: a suspicious OAuth grant plus an unusual VPN login plus an endpoint anomaly look harmless individually and hostile together.
The practical question in an XDR decision is whether to buy a native XDR suite (single vendor, tight integration, deeper lock-in) or to build an open XDR stack (best-of-breed sensors feeding a SIEM or data platform). Both are defensible; the memo has to make the trade-off explicit.
In practice
In regulated contexts, XDR selection often interacts with SOC or MDR contracts. If the MDR partner runs on a specific XDR, the MDR and XDR decisions are not independent and the memo should treat them as one.
Related terms
EDR (Endpoint Detection and Response)
A class of endpoint security tools that continuously records endpoint activity and enables detection, investigation and response to threats that evade traditional antivirus. Most enterprise security incidents today are detected or contained at the EDR layer.
MDR (Managed Detection and Response)
A service that provides outsourced 24/7 monitoring, detection and response on top of an EDR or XDR platform. MDR replaces the need to staff a full in-house security operations centre while keeping incident ownership internal.
SIEM (Security Information and Event Management)
A platform that centralises security logs, enables long-term retention, runs correlation rules and supports investigation. SIEM is the evidence layer under EDR, XDR and SOC operations and the single largest line item in most security budgets.
AI Act Conformity Assessment
Procedure to demonstrate that a high-risk AI system complies with the EU AI Act before being placed on the market or put into service. Mandatory for all Annex III high-risk systems from 2 December 2027 (postponed from the original 2 August 2026 by the Digital Omnibus, Regulation (EU) 2026/1744).
AI Act Risk Categories
Four-tier classification under the EU AI Act: prohibited (Art. 5), high-risk (Annex I/III), limited risk (Art. 50 transparency), minimal risk. Classification is the first duty; it must be documented and defensible.
Audit-ready decision
A decision whose record is structured, evidence-backed and stakeholder-signed to a level that a third-party auditor, a supervisor or a board reviewer can reconstruct the reasoning without interviewing the original team.
BAIT
BaFin circular that concretises IT requirements for credit institutions. Specifies MaRisk AT 7.2 for IT strategy, information security, user permissions, project management, application development, and IT outsourcing.
BCM
Discipline for maintaining critical business processes during disruptions. Standards: ISO 22301, BSI Standard 200-4. Mandatory under BAIT/VAIT and DORA Art. 11 in the financial sector.