How Will NIS2 Affect You?
Published: October 23, 2024
The NIS2 Directive, which stands for Network and Information Security Directive, aims to strengthen cybersecurity and resilience against cyber threats within the EU. It is an update of the previous NIS Directive and introduces several new measures to increase requirements for companies and public institutions managing critical infrastructure or essential services.
Impact on Businesses
- Increased Costs: Companies will need to invest more in cybersecurity, including technology, training, and personnel, to meet the new requirements.
- Greater Focus on Risk Management: Cybersecurity must be integrated into the company’s overall risk management process, and businesses must be prepared to quickly detect and handle cyberattacks.
- Increased Pressure on Suppliers: Since companies are also responsible for their suppliers' security, this may put pressure on the entire supply chain to implement stricter security measures.
At first glance, NIS2 may seem like a concern for a specific segment of businesses and public administration, but its most likely effect is that the entire society will elevate its level of cybersecurity. This is partly because affected organizations and companies need to monitor their suppliers, but also because the general "hygiene level" of security will rise, making it harder to justify security lapses.
Expanded Scope
Compared to the original NIS legislation, the scope of NIS2 will be expanded to cover more sectors. In addition to energy, transport, finance, and healthcare, it will now also include:
- Postal services and waste management
- Digital services (including cloud services, data centers)
- Space sector
Some smaller companies that were previously exempt may also be included depending on their size and importance to critical societal functions.
Specific Requirements
Security requirements will generally become stricter, with concrete demands in areas such as risk management, security monitoring, incident management, and regular vulnerability assessments.
Furthermore, there is an ambition for better coordination at the societal level regarding the reporting of incidents. Companies are required to follow specific protocols for reporting incidents, including actions taken to handle them. Failure to report in time could result in significant fines.
The fine levels may resemble those imposed under GDPR, and steps are also being taken to hold company management and board members personally accountable. In summary, sanction mechanisms are being established to force rapid and substantial efforts to raise the security standards of all affected companies and organizations.
The idea of coordination also extends to information sharing, so that national cybersecurity authorities will improve their collaboration and coordination between countries and sectors.
In summary, NIS2 is a natural continuation of NIS, with the same underlying spirit but significantly stricter application. For those who haven't paid attention to NIS before or started working on these issues, there is a significant amount of work ahead in the coming years.