Blog

Understanding NIS2: Strengthening operational resilience across Europe

How does expanded regulation impact cybersecurity in the EU and what will it mean for businesses?

Jason Koestenblatt
Manager, Content Marketing
November 27, 2024

What is the NIS2 Directive?
Who is impacted by NIS2?
Key provisions of NIS2
Why is NIS2 important?
The path forward

In today’s increasingly interconnected world, the importance of robust cybersecurity cannot be overstated. With cyberattacks growing in sophistication and scale, governments worldwide are scrambling to protect critical infrastructure and sensitive data. In the European Union, one such response is the implementation of the NIS2 Directive — a bold step in reinforcing cybersecurity across member states.

OneTrust sees NIS2 as an important step towards enhancing cybersecurity in critical sectors that consumers rely on.

But what exactly does NIS2 entail, and why is it so crucial for businesses, governments, and individuals alike?

What is the NIS2 Directive?

The NIS2 Directive, short for Directive on Security of Network and Information Systems, is an updated piece of legislation designed to enhance the overall cybersecurity framework within the European Union. It was adopted in 2022, building on its predecessor, the original NIS Directive from 2016. NIS2 introduces a more comprehensive and stringent approach to cybersecurity, addressing a broader range of sectors, including critical infrastructure, energy, healthcare, and finance.

The aim of NIS2 is simple yet profound: to create a resilient digital environment across Europe by improving the cybersecurity capabilities of essential and important entities. By setting clear standards for cybersecurity governance, incident reporting, risk management, and cross-border collaboration, the directive strives to mitigate the risks posed by cyber threats.

Who is impacted by NIS2?

Under the NIS2 Directive, the scope of affected entities has expanded considerably compared to the original NIS Directive. Now, more sectors and types of organizations are subject to its requirements. These include:

Critical Infrastructure Providers: Entities in sectors such as energy, water, transport, and healthcare. These industries are increasingly targeted by cybercriminals due to their importance in maintaining the functioning of society.
Digital Service Providers: This includes cloud services, online marketplaces, and search engines. As businesses continue to move operations online, the cybersecurity of these digital infrastructures becomes more vital than ever.
Public Administration Bodies: Governments and governmental bodies at national and local levels also fall under the directive.

The directive also places an emphasis on supply chains, recognizing that cybersecurity vulnerabilities in one entity can have a cascading effect on others. This interconnected approach encourages organizations to not only focus on their own defenses but to also ensure their partners and suppliers maintain high cybersecurity standards.

Key provisions of NIS2

The NIS2 Directive lays down a comprehensive framework for improving cybersecurity across Europe. Key provisions include:

1. Cybersecurity Risk Management Measures

NIS2 requires organizations to adopt a risk-based approach to cybersecurity. This involves identifying, assessing, and mitigating risks in a systematic manner. Entities are also expected to establish clear internal governance structures for managing cybersecurity and to implement incident response plans to swiftly address breaches when they occur.

2. Incident Reporting

NIS2 enhances the requirement for reporting cybersecurity incidents. Organizations must now report significant security incidents to the relevant authorities within 24 hours of detection. This rapid reporting is essential in ensuring that threats are identified early and mitigated before they cause widespread damage.

3. Supply Chain Security

The directive places significant emphasis on securing supply chains. Given the growing complexity and interdependency of global supply chains, NIS2 mandates that organizations assess and manage the cybersecurity risks posed by third-party suppliers and partners. This is an attempt to close the often-overlooked vulnerabilities in the supply chain that can be exploited by cybercriminals.

4. Stronger Enforcement and Penalties

Different than the initial NIS Directive, NIS2 is less voluntary and will impose financial penalties similar to those of GDPR and DORA. NIS2 introduces stronger enforcement mechanisms. Member states must establish clear national cybersecurity authorities with the power to impose fines and sanctions on organizations that fail to comply with the directive. These penalties can be steep—up to 2% of a company’s annual turnover—emphasizing the importance of adhering to the cybersecurity standards set forth in the directive. Additionally, there are possible implications for c-level executives that fail to comply with the directive.

5. Enhanced Cooperation

NIS2 facilitates cross-border cooperation and information sharing between member states. By strengthening the EU’s collective response to cyber threats, the directive ensures that member states can share best practices, conduct joint cybersecurity exercises, and respond swiftly to incidents that may affect multiple countries.

Why is NIS2 important?

The digital landscape is evolving at an astonishing pace, and with it, the threats posed by cybercriminals. From ransomware attacks targeting hospitals to the theft of sensitive data from government agencies, cyber incidents have the potential to cripple entire sectors. NIS2 addresses this growing threat by not only tightening regulations but also fostering a culture of proactive cybersecurity within organizations.

Furthermore, NIS2 helps standardize cybersecurity practices across the EU. In a union of diverse countries with varying levels of digital maturity, uniform standards are crucial for ensuring that no member state is left behind. This harmonization helps mitigate the risks associated with fragmented cybersecurity approaches, making it easier to manage cross-border cyber threats.

The path forward

As the NIS2 Directive begins to take effect, organizations across the EU must begin aligning their cybersecurity practices with its requirements. The directive is a reminder that cybersecurity is not a one-off task but an ongoing commitment. Organizations must invest in technologies, training, and processes to safeguard their networks and data against an ever-evolving landscape of cyber threats.

In an era where digital transformation is paramount, NIS2 ensures that as Europe embraces new technologies, it does so with a solid foundation of cybersecurity. The directive is more than a regulatory framework; it’s a call to action for organizations to strengthen their defenses, secure their digital infrastructure, and contribute to a safer, more resilient digital Europe.

OneTrust offers robust solutions to enhance cyber resiliency and operationalize NIS2 compliance across the organization. Download this eBook to learn more about regulations like NIS2 and DORA, and how they’ll impact the future of third-party management.

Blog

Understanding NIS2: Strengthening operational resilience across Europe

Table of contents

What is the NIS2 Directive?

Who is impacted by NIS2?

Key provisions of NIS2

1. Cybersecurity Risk Management Measures

2. Incident Reporting

3. Supply Chain Security

4. Stronger Enforcement and Penalties

5. Enhanced Cooperation

Why is NIS2 important?

The path forward

You may also like

Third-Party Risk

DORA Compliance Countdown: Are you ready?

Join us to learn more about the Digital Operational Resilience Act (DORA) and how OneTrust can help organizations research, implement, and monitor compliance at scale with DORA and other related regulations and standards like NIS2 and ISO.

January 16, 2025

Third-Party Risk

Virtual Lunch & Learn: A deep dive into OneTrust's Third Party Management capabilities

Join us for a virtual Lunch & Learn session and explore how OneTrust’s Third Party Management solution can streamline your risk management processes.

December 17, 2024

Technology Risk & Compliance

The PDPL in Saudi Arabia is now in effect: is your business ready?

Join our Saudi Arabia PDPL webinar for an overview on the data protection law, its requirements, and how to prepare for full enforcement.

December 12, 2024

Third-Party Risk

Unpacking global regulatory frameworks to enhance third-party operational resilience

Register for this OneTrust webinar to learn about the relevant resilience focused requirements of DORA, NIS 2, and other global regulations.

December 11, 2024

Technology Risk & Compliance

Understanding the NIS 2 Directive: Compliance insights and best practices

This DataGuidance webinar explores the latest and expected developments in the implementation of the NIS 2 Directive, focusing on practical compliance strategies to ensure your organization is prepared.

December 04, 2024

Third-Party Risk

Rise above risk: Third-party management in technology

November 21, 2024

Privacy Automation

Defining a new direction for data

As AI continues to offer unparalleled opportunities for business innovation, it also presents risks that organizations must tackle head-on through scalable governance programs that span multiple data sources. Six key trends are defining these challenges.

November 13, 2024

Third-Party Risk

Bill S-211: Will you be ready by May 31?

In this webinar, our experts will discuss the Canadian regulation and others like it globally, while providing actionable insights into building a robust and mature Third-party program.

November 07, 2024

Third-Party Risk

Tackling IT security risks for banks in South Africa

Join our OneTrust webinar on tackling IT security risks for banks in South Africa. Explore strategies for safeguarding sensitive data, ensuring POPIA compliance, and managing cyber threats. Gain actionable insights to strengthen your security posture and build customer trust.

October 31, 2024

Privacy Automation

Build resiliency and operationalize compliance with OneTrust: Fall product release recap, 2024

Join our upcoming product release webinar to explore how these new capabilities can help your organization navigate complex frameworks, streamline third-party management, and accelerate AI and data innovation.

October 22, 2024

Third-Party Risk

Live Demo EMEA: Building a robust third-party risk management program with OneTrust

Join to explore how OneTrust's TPRM solution can revolutionize your third-party risk management approach. We will cover best practices for implementing and leveraging the software to minimize risks.

October 10, 2024

Third-Party Risk

Simplifying vendor risk management

Streamline third-party relationships and avoid common mistakes in the process.

October 03, 2024

Third-Party Risk

Essential checklist for simplifying third-party risk management

Third-party management doesn’t have to be a complicated process for your business.

October 02, 2024

Third-Party Risk

Navigating risk in financial services with third-party management

Working with third parties introduces privacy and security risks, making compliance and business growth a balancing act.

October 01, 2024

Third-Party Risk

Manufacturing risk: Managing third parties in the supply chain

Third-party management keeps manufacturing operations running smoothly by verifying vendor and supplier compliance with regulations.

September 30, 2024

Third-Party Risk

The complete guide to third-party management

It’s imperative for security teams to implement a holistic approach to third-party management.

September 27, 2024

Third-Party Risk

Strengthen your third-party ecosystem: Strategies to combat modern slavery, anti-bribery, and corruption

Join our upcoming webinar to learn how to navigate the complexities of managing modern slavery, anti-bribery, and corruption within your third-party ecosystem.

APAC - Third-party risk management and due diligence: What’s the difference and why does it matter?