Ready for NIS2 Directive?

• Date: April 18, 2024

What is NIS2 Directive?

The NIS2 Directive, short for Network and Information Security Directive, marks the European Union's latest cybersecurity policy aimed at bolstering the collective cybersecurity of Member States. Replacing its predecessor, the NIS Directive, NIS2 introduces stricter requirements for security, heightened reporting obligations, and more stringent enforcement measures, now applicable to a wider range of organizations. Essentially, NIS2 seeks to shield critical organizations and infrastructure within the EU from cyber threats, with the overarching objective of achieving a high standard of security across the region.

For organizations falling under the purview of NIS2, there are crucial considerations and actions necessary to ensure compliance with the directive. Here's a breakdown of what you need to know:

Cybersecurity Risk Management Measures:

NIS2 mandates the implementation of ten cybersecurity risk management measures. These measures encompass a spectrum of technical, operational, and organizational actions aimed at mitigating risks to network and information systems. Key measures include conducting risk analysis, enforcing basic cyber hygiene practices, and establishing incident handling protocols.

Responsibility of Top Management:

Top management holds the responsibility and accountability for cybersecurity within their organization. They are required to approve cybersecurity risk-management measures and undergo cybersecurity training. Failure to fulfill these responsibilities may result in penalties or temporary bans on managerial functions.

Harsher Penalty Regime:

Non-compliance with NIS2 requirements carries significant penalties, including fines of up to EUR 10,000,000 or 2% of total annual turnover, along with potential suspension of authorization for services provided by the organization.

Stricter Supervisory Regime:

NIS2 strengthens the supervisory regime to ensure compliance with security risk management requirements. Organizations may face on-site inspections, off-site supervision, and various audits to assess their adherence to the directive.

Enhanced Reporting Requirements

In the event of a cyber incident, organizations must promptly notify the relevant authority within 24 hours and provide a detailed report within 72 hours. This report should include incident details, the likely cause, and mitigation measures implemented.

It is imperative for organizations to familiarize themselves with NIS2 requirements to avoid severe sanctions. Compliance not only mitigates risks but also contributes to enhancing cybersecurity maturity, safeguarding data, systems, and processes against cyber threats.

Preparing for NIS2 compliance involves several proactive steps:

• Conducting an inventory or audit of the organization's architecture and systems landscape.
• Implementing a robust risk management framework to identify, assess, and treat threats continuously.
• Initiating crisis management activities to minimize the impact of potential crises.
• Establishing business continuity and disaster recovery procedures to ensure operational continuity during disruptions.
• Involving top management in the cybersecurity strategy.
• Assessing supply chain risks and involving suppliers and service providers in risk assessments.
• Developing a structured incident management process to effectively handle cybersecurity incidents.

Compliance with the NIS2 Directive is not merely about avoiding penalties but also about strengthening cybersecurity posture and resilience against evolving threats. Therefore, organizations should begin taking proactive steps to meet NIS2 requirements and enhance their cybersecurity capabilities.