Navigating NIS2: Strengthening Cybersecurity Across the EU

The NIS2 Directive, an updated European Union initiative, builds upon the original Network and Information Systems (NIS) Directive to address evolving cybersecurity needs in critical and essential sectors. NIS2 introduces stringent requirements to enhance the resilience of essential services, spanning energy, finance, health, transportation, and digital infrastructure. This directive mandates that entities in these sectors adopt robust cybersecurity measures, enforce reporting protocols for incidents, and develop response plans to mitigate potential risks.

What is the NIS2 Directive?

NIS2 is designed to improve the EU’s cybersecurity landscape by broadening the scope of the original NIS Directive and establishing higher standards across member states. NIS2 expands coverage to a broader set of sectors, and more companies are now included within each sector. The directive also increases the oversight responsibilities of national authorities, encouraging a uniform approach to cyber resilience across the EU. Additionally, NIS2 strengthens cross-border collaboration, allowing member states to share critical threat intelligence more effectively and respond to large-scale incidents in a unified manner.

Key Elements of NIS2

1. Expanded Scope and Sector Coverage
   NIS2 includes more industries and entities, covering essential services and critical supply chain providers like IT and managed service providers. The directive requires that all covered organisations maintain and regularly update cybersecurity measures.
2. Cybersecurity Risk Management and Incident Reporting
   Organisations must adopt a proactive stance, implementing technical and organisational measures to prevent cyber incidents. NIS2 also mandates prompt incident reporting, requiring companies to inform authorities within 24 hours of detecting an incident and to provide updates until it’s resolved.
3. Increased Accountability
   NIS2 introduces non-compliance penalties to ensure effective compliance and mandates board-level cybersecurity accountability. Company boards are now directly responsible for overseeing cybersecurity practices, which may require new governance structures and risk management protocols.
4. Supply Chain and Third-Party Risk Management
   With supply chain attacks rising, NIS2 emphasises the need for rigorous third-party risk management, obligating companies to assess and secure their supply chain relationships. This measure seeks to prevent cyber threats from infiltrating organisations through vulnerable external providers.

Preparing for NIS2: What Companies Need to Do

1. Assess Compliance Gaps
   Companies should start with a comprehensive audit of current cybersecurity measures against NIS2 standards to identify areas for improvement. This might include updating policies, refining incident response procedures, and enhancing internal training.
2. Build Incident Reporting and Response Frameworks
   Given the strict 24-hour reporting window, it’s crucial to implement streamlined incident response processes. Companies should establish communication channels with relevant authorities and ensure staff are trained in rapid reporting and escalation.
3. Strengthen Supply Chain Security
   Companies should rigorously evaluate the cybersecurity practices of their suppliers, with a particular focus on IT service providers. Establishing clear contractual obligations for cybersecurity with third parties can also help mitigate potential vulnerabilities.
4. Establish Board-Level Cybersecurity Oversight
   With board members now responsible for cybersecurity oversight, businesses should embed cybersecurity into board agendas, ensuring that leadership is informed and involved in security strategies and compliance initiatives.

The Impact of NIS2 on the Future of Cybersecurity

NIS2 is a critical step toward creating a more resilient digital infrastructure across the EU, enabling organisations to mitigate risks in a coordinated manner. By enhancing cross-border collaboration, enforcing stricter standards, and focusing on supply chain resilience, NIS2 aims to prevent cyber incidents and foster a culture of preparedness and accountability.

For businesses operating in or with the EU, compliance with NIS2 is both a regulatory obligation and a strategic opportunity to build more robust cyber defences. As cybersecurity threats evolve, the directive positions the EU at the forefront of digital resilience, setting an example that could shape global cybersecurity practices in the years to come.

Implementing the necessary changes will prepare companies for a future where robust cybersecurity is an operational cornerstone, ensuring compliance and resilience in an increasingly connected world.

How can DSP help?

DSP can be your essential partner in helping your company comply with NIS2 by offering advanced security solutions to enable robust risk management. We support organisations by implementing enhanced threat monitoring, incident reporting systems, and secure infrastructure, aligning closely with NIS2’s requirements for managing third-party and supply chain security risks. We have the expertise to implement security assessments, allowing companies to meet NIS2 standards while ensuring continuous operational continuity. Contact us today if you wish to speak to one of our experts.