Here we detail all there is to know about NIS2 Directive compliance regulations and what it means for your organisation's data.
In 2023, the EU passed a major new piece of cybersecurity legislation, the Network and Information Security 2 (NIS2) directive. It sets a higher bar for what organisations must do to guard against cyberattacks and protect their data.
The deadline for NIS2 compliance - October 17, 2024 - is fast approaching. But as recently as last October, only 34% of affected organisations in France, Germany, and the UK were ready to comply with NIS2.
Even many critical infrastructure organisations in the EU, which are highly vulnerable to cyberattacks, are not yet complying with NIS2 risk analysis requirements.
Itâs clear, then, that meeting these higher NIS2 security standards is a challenge for many organisations. With this in mind, weâve put together the following guide to help your business comply.
The original NIS Directive, established by the EU in 2016, was a significant step in increasing cybersecurity collaboration among member states and improving IT security standards among EU organisations.
However, a lot has changed in the cybersecurity landscape since 2016. In recent years, NIS became increasingly inadequate in handling new threats:
NIS security standards were also not consistently implemented by EU states. The directive allowed for some flexibility in interpretation, leading to differences in what was considered an 'essential' sector. This led to varying levels of cybersecurity preparedness across different regions, with some statesâ critical sectors remaining under-protected.
To address these shortcomings, the NIS2 directive was introduced. It's a comprehensive update that extends and refines cybersecurity requirements to reflect the ever-present threats that organisations around the world are facing. NIS2 is also geared towards getting cybersecurity requirements to be implemented evenly across EU member states, ensuring that all are equally protected against threats.
A key change in the EU NIS2 directive is the inclusion of a significantly wider range of sectors. This expansion recognises that more industries are now integral to Europe's critical infrastructure and digital service landscape and, therefore, urgently need to comprehensively protect themselves from cyberattacks. NIS2 affects over 100,000 large and medium-sized organisations across various sectors, an increase from the original NIS directive.
Entities under NIS2 are classified into two categories: "essential" and "important." This classification hinges on how severe the impact of a cybersecurity breach would be. For an entity to be deemed "essential," its compromise must pose a significant threat to public safety, security, or economic stability.
Both essential and important entities are subject to the same baseline security requirements under NIS2. However, essential entities are subject to more stringent and proactive supervision from EU authorities. This includes regular audits and stricter compliance checks to ensure they have the highest possible level of cybersecurity protection.
NIS2 also applies to non-EU companies that offer services within the EU. This means that international businesses, including cloud service providers, social networks, and search engines, must comply with NIS2 if they operate in the EU market. These companies need to designate an EU representative to comply with the directive.
The EU NIS2 directive sets out 10 key security requirements that organisations need to adhere to. These requirements cover a range of cybersecurity practices and are an essential starting point for protecting against breaches.
Among all of these requirements, there are several key areas that deserve particular attention:
Non-compliance with NIS2 can lead to significant penalties. Essential entities may face fines of up to âŹ10 million or 2% of global turnover, while important entities could incur fines of up to âŹ7 million or 1.4%. There's also a provision that holds corporate management personally liable for cybersecurity negligence.
For companies that arenât compliant yet, getting up to speed can often take longer than expected. When it came to the last significant EU cybersecurity legislation, GDPR, compliance took most companies seven months or longer. This resulted in around half missing the deadline.
So to avoid the risk of large fines, itâs critical to start preparing for the October 2024 deadline as soon as possible.
Securing your organisationâs sensitive data is a key requirement of NIS2, and you need the most up-to-date software to achieve this.
Metomicâs data security software gives you complete visibility and control over sensitive data in your SaaS applications, protecting you from critical cybersecurity risks.
Download our guide to see how Metomic can help you achieve NIS2 compliance by giving visibility and control over where your sensitive data is stored.