The EU’s updated Network and Information Security Directive (NIS2) is now in force, significantly enhancing cybersecurity obligations for essential services and critical infrastructure sectors. Ensure your organization stays secure, resilient and aligned with evolving cybersecurity regulations in today’s increasingly interconnected digital environment.
The Network and Information Security Directive 2 (NSI2) is an EU regulation that enhances essential services and critical infrastructure cybersecurity. It expands the scope of the original NIS Directive, requiring sectors like energy, healthcare and finance to manage and mitigate cyber risks.
NSI2 mandates more robust security measures, incident response protocols and collaboration with national authorities to ensure resilience against cyber threats and safeguard critical operations across various industries.
Navigating the compliance landscape for the EU NIS2 raises many critical questions:
What are the requirements of NIS2, and how can my organization comply?
The NIS2 Directive significantly raises the bar for cybersecurity requirements, particularly for critical infrastructure operators. It mandates stricter security measures and imposes obligations to report cybersecurity incidents within 24 hours of detection, making swift and effective responses crucial. Here’s how you can prepare:
Strengthen cryptography and encryption
NIS2 places emphasis on the use of cryptographic measures to protect sensitive information. This includes ensuring that critical data, whether at rest or in transit, is encrypted using industry standards.
Implement strong authentication mechanisms
Organizations must adopt comprehensive authentication processes to comply with NIS2’s stricter security requirements. This ensures that only authorized users have access to sensitive systems and data.
Conduct regular risk assessments, audits and security planning
NIS2 requires organizations to proactively manage and mitigate risks through consistent assessments, security audits and maintaining up-to-date security plans.
Avoid penalties for non-compliance
Failure to comply with NIS2 can result in severe financial penalties and reputational damage. Organizations must be proactive in meeting standards to avoid these consequences.
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1 Oct 2024 NAVEX Editorial Team
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How to meet NIS2 compliance requirements in your organization
To achieve NIS2 compliance, your organization should follow these steps:
Assess risk and develop plans
Conduct a thorough assessment of your IT and information systems to identify vulnerabilities. Develop a robust risk management plan, business continuity and disaster recovery strategies to ensure effective responses to potential threats.
Train employees
Fostering a security-conscious culture requires training employees on cybersecurity best practices and NIS2 compliance. To enhance their understanding, provide access to relevant courses. For more information, visit the NAVEX compliance training page.
Manage and report incidents
Develop incident management plans for responding to cybersecurity incidents and potential attacks. Encourage employees to report incidents by providing clear procedures, including reporting protocols, deadlines, and content requirements.
Secure supply chains
Assess and address cyber threats within supply chains and supplier relationships. Collaborate with suppliers to ensure they follow strong cybersecurity practices, reducing risks associated with third-party vulnerabilities.
Conduct regular internal audits and correct issues
Schedule regular internal audits to ensure compliance with NIS2 and align with your risk management plans. Promptly implement corrective actions for any identified issues to enhance security.
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The NIS2 Union formally adopted the European Directive in December 2020, and EU member states are transposing it into national law. Organizations should monitor their local government’s implementation timeline and prepare for compliance as deadlines approach.
NIS2 compliance is required for medium and large enterprises in critical infrastructure sectors, including energy, transport, health and digital services. Organizations operating within the EU or providing services to EU markets must also comply, regardless of size, including new industries such as food supply and space services.
Penalties for noncompliance with NIS2 can include substantial fines, typically calculated as a percentage of the organization’s annual revenue and may reach millions of euros. Additionally, organizations may face reputational damage and operational restrictions.
NIS2 expands upon the original NIS1 directive by including a broader scope of essential services, introducing stricter security requirements and enhancing incident reporting obligations.
NIST (National Institute of Standards and Technology) focuses on developing cybersecurity standards and guidelines primarily for U.S. federal agencies and contractors, whereas NIS2 is an EU Directive mandating specific cybersecurity measures for essential services across member states. Learn more about NIST compliance.
NIS2 primarily addresses cybersecurity requirements for essential and vital entities across various sectors, while DORA (Digital Operational Resilience Act) focuses specifically on the financial industry, emphasizing operational resilience against digital threats. Learn more about DORA compliance.
NIS2 mandates organizations to have incident response plans that include clear procedures for detecting, reporting, and responding to incidents. Companies must also report significant incidents to relevant authorities within 24 hours of detection.
Organizations are required to assess and manage risks to network and information systems, implement appropriate security measures, report incidents and participate in cybersecurity training. Compliance also involves regular audits and risk assessments to ensure ongoing adherence.
The U.S. equivalent of NIS2 would be frameworks like the Cybersecurity and Infrastructure Security Agency (CISA) guidelines and sector-specific regulations, such as the NIST Cybersecurity Framework, which aim to enhance cybersecurity across critical infrastructure sectors. Additional resources can be explored for more context.