The NIS2 Directive (Network and Information Security Directive) is a significant update to its predecessor, NIS1. The new regulations aim to improve cybersecurity across the European Union by expanding regulatory scope, strengthening security measures, and introducing stricter requirements for organizations. In this article, we will discuss the key differences between both directives and the challenges that NIS2 presents for businesses.
Key Differences Between NIS1 and NIS2
1. Broader Scope of Covered Entities
NIS1 covered a limited number of sectors, such as energy, transport, and healthcare. NIS2 significantly expands this scope by including sectors such as:
Postal and courier services,
Chemical and food industries,
Manufacturing and digital technology providers,
Public administration. This expansion ensures that the directive covers a larger number of entities crucial to the economy and society.
2. New Classification of Organizations
Unlike NIS1, which gave member states significant flexibility in defining covered entities, NIS2 introduces a uniform classification:
Essential Entities – subject to stricter requirements and supervision,
Important Entities – subject to requirements but with less rigorous oversight.
3. Stricter Risk Management Requirements
NIS2 mandates organizations to adopt more advanced risk management measures, including:
Mandatory risk assessments,
Regular penetration testing and audits,
Supply chain security and third-party risk management,
Encryption and multi-layered security measures.
4. More Stringent Incident Reporting Requirements
While NIS1 required incident reporting in a general sense, NIS2 establishes more precise guidelines:
Initial notification within 24 hours,
Detailed report within 72 hours,
Final report with a full incident analysis and mitigation measures.
5. Higher Penalties for Non-Compliance
NIS2 introduces significantly stricter penalties for organizations failing to comply with regulations. These penalties can reach:
10 million euros or 2% of global annual turnover for essential entities,
7 million euros or 1.4% of global turnover for important entities.
New Challenges for Organizations
1. Increased Administrative Burden
Companies will need to comply with stricter requirements, maintain documentation, conduct regular audits, and continuously update cybersecurity policies.
2. Greater Management Responsibility
NIS2 introduces personal liability for managers failing to comply with the regulations, potentially resulting in sanctions or even bans on holding executive positions.
3. Ensuring Supply Chain Security
Organizations must assess and monitor the cybersecurity posture of their suppliers, which may require additional resources and investments.
NIS2 is a crucial step in strengthening cybersecurity across Europe. Its expanded regulatory scope, stricter requirements, and higher penalties mean that organizations must take a meticulous approach to compliance. While adapting to the new regulations may be challenging, in the long run, it will enhance data and system protection, minimizing the risk of cyberattacks.
