The NIS2 Directive, an update to the original NIS Directive (Network and Information Systems Directive), aims to enhance the cybersecurity and resilience of critical infrastructure across the European Union. This directive affects about 150,000 big and medium companies within EU, including essential services operators along with digital service providers.
Under the new directive, all important entities, regardless their size, must abide by strict cybersecurity steps. These include risk analysis and incident handling as well as planning for business continuity and security within supply chains.
Read more to find about NIS2 and how can companies stay ahead.
What is NIS2?
The NIS2 Directive, a new framework from the European Union, is made to strengthen cybersecurity and resilience in infrastructure sectors. It builds on the old NIS Directive that was given out in 2016 to make it more effective for modern threats by widening its area of effect and setting clearer rules about cybersecurity. This rule is for essential services operators and providers of digital services within the EU, impacting around 150,000 large and medium-sized companies.
Entities in NIS2 are divided into “essential” or “important,” with the distinction based on how much harm a possible service interruption could cause. All groups, regardless of their classification, must follow similar cybersecurity requirements, including risk analysis, incident handling, business continuity planning, and supply chain security. However, those considered essential will be under active supervision by authorities. The directive further emphasizes comprehensive incident reporting.
What Does NIS2 Mean for Organizations?
Expanded scope and responsibility
NIS2 includes a wider variety of sectors, from energy and transportation to banking, health care, and digital services. Many organizations, even those not covered before, now have to implement strong cybersecurity methods and report incidents within strict time limits. Companies from outside the EU that offer services inside the EU must also follow NIS2 and select a representative within the European Union.
Stricter security requirements
Organizations should follow all cybersecurity steps, risk management, incident response, business continuity systems, and supply chain security. These measures aim to guard essential infrastructure against cyber dangers and enable quick response and recovery from incidents.
Increased accountability and training
NIS2 gives more responsibility to top management, requiring them to oversee cybersecurity action plans and ensure compliance. This includes mandatory training for executives and staff to develop a culture where everyone is aware of security and is prepared for it.
Enhanced incident reporting obligations
The directive sets strict rules for reporting incidents. Organizations have to give a preliminary report within 24 hours of detecting an incident, followed by a detailed notification within 72 hours, and finally submit the last incident report after they fix the problem. The reports should include early warnings, assessments of impact, and detailed remediation actions to relevant authorities and the European Union Agency for Cybersecurity (ENISA).
Significant penalties for non-compliance
Companies failing to comply with NIS2 may face significant financial penalties and legal consequences. Essential entities could be fined up to €10 million or 2% of their overall company earnings, while important entities might receive fines reaching €7 million or 1.4% of their worldwide turnover. Senior management may also face personal liability, including fines and temporary bans from management roles.
Emphasis on cross-border collaboration
NIS2 also encourages cross-border collaboration through standardized reporting protocols, information sharing, and joint response mechanisms. These actions promote an organized method for handling cybersecurity throughout the EU, enhancing the collective ability to respond to international and domestic cyber threats.
Challenges for organizations
- Complex compliance requirements: Understanding the intricate and extensive compliance requirements may be challenging, especially for those organizations with limited cybersecurity expertise.
- Resource allocation: The application of NIS2 standards necessitates substantial resources for building cybersecurity infrastructure, training, and staffing, which may be difficult for smaller establishments.
- Integration with existing frameworks: Organizations need to integrate NIS2 requirements with their existing cybersecurity frameworks, which can be complex and time-consuming.
- Rapid incident reporting: To adhere to the mandate of submitting the initial incident report within a 24-hour, companies need tools and software that possess effective detection and reporting techniques.
How can vendors like Checkmarx and Teleport help?
- Checkmarx:
- Application security: Checkmarx provides top-of-the-line application safety testing solutions that assist groups in finding and fixing weak points in their software, corresponding to NIS2’s focus on secure software creation.
- Training and awareness: You can get your developers and other staff training and resources to help improve their cybersecurity knowledge and practices with Checkmarx, which is essential under NIS2.
- Teleport:
- Access management: Teleport provides safe access solutions for managing and auditing access to infrastructure, applications, and data.
- Zero trust architecture: The zero trust method from Teleport helps to make security even better because it only allows authenticated and authorized access, lowering chances for unapproved entry and breaches.
- Incident response: With Teleport, businesses get the tools for rapid detection and response to security incidents, aligning with NIS2’s incident reporting and response requirements.
Stay ahead of NIS2 compliance
Dealing with NIS2 compliance can be a challenging task for organizations, requiring significant investments in cybersecurity structure, training, and resources. The strict demands of this directive show the value of strong cybersecurity methods and involvement from senior management. Not following suit can result in heavy penalties and personal responsibilities for senior management, highlighting how vital it is now for companies operating in EU to comply with NIS2. Vendors such as Checkmarx and Teleport can assist with this effort by supplying high-level security solutions along with knowledge for dealing with demands from NIS2.
