Cybersecurity has become a more core business value than a choice for businesses. Hence, the growing cyber threats encouraged the European Union to introduce the NIS2 Directive. It helps strengthen cybersecurity across the bloc.
NIS2 stretches both the scope and firmness of cybersecurity obligations, especially for companies working in critical sectors. The main goal is to make Europe’s digital strength better altogether.
If you want to know more about NIS2, who it affects, and what businesses can do to remain compliant, be sure to read till the end of this article!
What is NIS2 and who does it apply to?
The NIS2 directive, also short for Directive on measures for a high common level of cybersecurity across the Union, is an EU-wide regulation. Its main focus is the security of the network and information systems.
Further, NIS2 replaced the original 2016 NIS Directive and stretched its scope. It came into force through national laws in October 2024.
Who does NIS2 apply to?
NIS2 is applicable for medium to large-scale companies. Such companies are likely to have over 50 employees or over €10 million turnover. And, they must be from a critical sector like:
- Energy
- Transport
- Banking and financial services
- Healthcare
- Digital infrastructure (e.g., data centers, cloud providers, DNS services)
- ICT service management (including managed service providers)
- Public administration
Additionally, small businesses may be considered under NIS2, given they have a role to play in critical sectors. Some such sectors could be key suppliers, tech providers, typically in a larger supply chain.
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Therefore, if a business plays an important role in EU’s economy, they have to comply no matter their size.
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What are the core obligations under NIS2?
NIS2 appoints governance and cybersecurity obligations on companies that have been affected. The core obligations under NIS2 are as follows:
Risk Management
To manage cybersecurity risks, you have to apply some technical measures. Such risk management measures include securing IT systems and networks, regular risk assessments, supply chain risk management, and incident detection and mitigation protocols. The measures should align to the risks and must match the company’s role in the sector.
Mandatory Incident Reporting
If certain cybersecurity incident occur, you have to report the same to concerned national authority or CSIRT (Computer Security Incident Response Team). Other ways of incident reporting are providing detailed report about the incident within 72 hours and submitting final assessment within a month.
Executive Accountability
One of the biggest change under NIS2 is a change in top-level responsibility. Executives in charge of top level responsibility must ensure staff training, look after compliance with NIS2 obligations, and approve cybersecurity risk management practices.
That said, cybersecurity cannot be delegated to the IT teams solely. The top level management have to get involved.
Significant Penalties
Not complying to NIS2 obligations can cost hefty consequences. One may be obligated to pay up to €10 million of fine or even worse, face 2% global turnover. Authorities supervising have the power to process binding instructions, practice audits, and even call out the names of non compliant companies.
How to start preparing now
Here is how your business can prepare for the NIS2 directive:
Determine if your organization is in scope
Firstly, you have to determine whether your organization is in scope or not to check how critical it is to the EU infrastructure. This means you need to check your organization’s size, role, and sector in the supply chain.
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Conduct a cybersecurity gap assessment
You can conduct a cybersecurity gap assessment by reviewing current systems, policies, and incident response capabilities. Identifying gaps between NIS2 requirements and current practices is also necessary. And, you can include supply chain risks and third-party in the assessment.
Strengthen internal policies and awareness
Businesses can strengthen internal policies and awareness by updating their cybersecurity policy framework. As a business owner, you can also organize training and awareness sessions for all levels of employees. You also need to develop and test business continuity plans and incident response.
Use recognized standards to structure your efforts
ISO/IEC 27001 standard can provide a good foundation for risk assessment, information security management, and audit and compliance tracking. Such standards also help streamline our path to NIS2 compliance.
Conclusion – From compliance to competitive advantage
The NIS2 directive not only fosters compliance but also builds customer trust and helps businesses gain a competitive advantage. And, complying is not only about avoiding fines. Your business will be at an advantage due to cyber risk mitigation, enhanced trustworthiness towards partners and clients, and improved crisis response and operational continuity.
Hence, cybersecurity has now become a strategic priority that impacts a business’s finances and reputation. And while NIS2 is an opportunity, you may be forced to comply if you don’t do it urgently.
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