In an era marked by escalating cyber threats, the European Union (EU) has taken a decisive step forward with the Network and Information Systems (NIS) 2 Directive. This legislation, building upon the foundations laid by the 2016 NIS Directive, is designed to fortify the cybersecurity defenses of entities deemed essential or important within the EU. Let's unravel the key aspects of NIS 2, explore its implications, and understand why compliance is crucial.

Who Falls Under NIS 2?

NIS 2 casts its cybersecurity net wide, encompassing two major categories of organizations:

1. Essential Entities: These are organizations delivering vital services like energy, transport, and healthcare.
2. Important Entities: Encompassing critical infrastructure sectors such as digital infrastructure, financial markets, and public administration.

Unpacking NIS 2: Key Requirements

NIS 2 introduces several pivotal requirements to enhance cybersecurity resilience:

1. Incident Reporting: Mandates reporting cybersecurity incidents to competent authorities within a 72-hours of timeframe.
2. Cybersecurity Risk Management Measures: Requires organizations to implement appropriate technical and organizational measures for effective cybersecurity risk management. (Chapter IV, Cybersecurity Risk-Management and reporting obligations)
3. Accountability: Requires organizations to take responsibility for implementing appropriate measures for identifying, assessing & mitigating the cyber.
4. Cooperation with Competent Authorities: Organizations must collaborate with competent authorities during investigations into cybersecurity incidents.
5. Supervision and Enforcement: Member States are mandated to establish supervisory authorities overseeing the implementation of NIS 2.

The Significance of NIS 2

NIS 2's significance extends beyond individual organizations, aiming to protect the EU's critical infrastructure from cyber threats. Safeguarding citizens & businesses, it also supports a harmonized approach to cybersecurity, contributing to the creation of a single market for cybersecurity products and services.

How to Navigate NIS 2 Compliance

Organizations falling under the purview of NIS 2 should initiate proactive steps for compliance:

1. Cybersecurity Risk Assessment: Identify vulnerabilities and prioritize mitigation efforts.
2. Implementation of Measures: Adopt technical and organizational measures, including encryption, access control, and security awareness training.
3. Incident Reporting Plan: Develop a robust plan for reporting cybersecurity incidents to the competent authority.
4. Employee Training: Educate staff on cybersecurity best practices to mitigate human error risks.
5. Regular Cybersecurity Posture Reviews: In a dynamic cybersecurity landscape, regular reviews and updates are imperative.

Additional Insights into NIS 2

NIS 2 introduces several supplementary requirements:

• Supply Chain Security: Managing cybersecurity risks associated with supply chains.
• Data Protection: Ensuring protection for collected and processed personal data.
• Penetration Testing: Regular tests to identify and remediate security vulnerabilities.
• Security Audits: Independent audits of security posture every three years.

The Stakes: Non-Compliance Consequences

Non-compliance with NIS 2 can result in severe consequences, including fines of up to €10 million or 2% of the organization's global turnover.

• Essential Entities: Member States are directed to levy fines up to the greater of €10,000,000 or 2% of the global yearly revenue. 
• Important Entities: Under NIS2, the fines can reach up to either €7,000,000 or 1.4% of the annual global revenue, with the higher amount being applicable.

How can we help you?

• Voltage Use cases:- The following are the key use cases of Voltage Fusion:

With Voltage capabilities of discovering, classifying, & tagging data across different types of repositories, it can help an organization to handle its data more effectively by achieving objectives of performing risk assessment, be privacy ready, identify redundant & obsolete data. Voltage has unique capabilities of unified data discovery, providing deep insights of the discovered data, Risk prioritization & securing the data.

• Voltage Fusion Portfolio: Below is our portfolio of Voltage Fusion and you can also check out our overall Voltage Portfolio by following this link. 

In Conclusion

NIS 2 stands as a pivotal legislative step, a strong defense against cyber threats for the EU. In this ever-evolving digital landscape, cybersecurity is not just a legal requirement; it's a commitment to safeguarding our digital future.

Additional resources: NIS Definitions