Navigating NIS2 Directive: Key Focus Areas


In an era of rapid digital transformation, where technological advancements have brought unprecedented efficiency and productivity gains, there is an accompanying rise in cybersecurity.

The frequency and severity of cyber-attacks on networks and information systems have escalated, particularly targeting critical sectors like Healthcare and Energy. These escalating cyber-attacks call for robust defensive actions and strategies. A key piece of legislation designed to raise cybersecurity standards within the European Union (EU) is the NIS2 Directive, also known
as Directive (EU) 2022/2555. To further improve the EU’s cybersecurity capabilities, it builds on its predecessor, the NIS Directive.

The December 2022 release of the NIS2 Directive attempts to standardise cybersecurity measures across all EU Member States. It develops avenues for international collaboration and overcomes discrepancies in cybersecurity implementation. It is crucial for companies operating in the EU to comprehend the NIS2 Directive. This article outlines the key aspects of the directive.

The application of the NIS2 Directive is spread across 11 essential sectors including energy, transport, banking and financial markets; and 7 important sectors including waste management, chemicals, food and manufacturing. The importance of Computer Security Incident Response Teams (CSIRTs) is highlighted by the NIS2 Directive. The directive entails the following:

  • Risk analysis and information system security policies
  • Incident handling
  • Business continuity and crisis management strategies
  • Supply chain security
  • Security measures in network and information systems acquisition
  • Policies and procedures for cybersecurity risk management
  • Training and awareness
  • Utilization of cryptography and encryption technologies
  • Continuous authentication solutions

To comply with NIS2 Directive standards, organisations must concentrate on the following critical areas to successfully negotiate the growing cyber security challenges:

  • Risk Management: Utilise effective risk assessment, and management procedures and regulations, that are industry-suitable, identifying possible weak points and impact scenarios.
  • Incident Response: Establish and enhance thorough incident response protocols that will allow for quick discovery, containment and recovery in the event of cyber incidents.
  • Business Continuity: Establish robust business continuity and crisis management procedures to ensure that activities can restart quickly in the event of cyber disruption.
  • Supply Chain Security: To reduce risks to the company, strengthen cybersecurity safeguards throughout the company supply chain, including third-party partners.
  • Monitoring and Compliance: Establish systems that allow for continuing compliance by regularly validating the effectiveness of cybersecurity measures.
  • Reporting to Authorities: Consistently adhere to the 24-hour reporting deadline for large occurrences to ensure prompt and accurate reporting of cyber incidents to appropriate authorities.
  • Cyber Security Framework: Develop a strong cybersecurity framework that combines organisational and technological safeguards to fully handle threats.

Complying with NIS2 Directive offers several advantages to businesses:

  • Reduced Cyber Risks: By drastically reducing the risk of cyber-attacks and data breaches, NIS2 Directive procedures can save costs and potential legal liability.
  • Effective Incident Management: Businesses may swiftly limit and reduce the effect of cyber-attacks with specified incident response procedures, reducing downtime.
  • Enhanced Business Continuity: Strong continuity plans ensure the continuance of essential services, reducing the expenses associated with downtime.

Financial Penalties:

In accordance with a company’s global turnover, non-compliance with the NIS2 Directive may result in significant financial penalties. Essential entities that infringe Article 21 or 23 face penalties of at least 2% of annual worldwide turnover or €10 million—whichever is higher. Important entities
that infringe Article 21 or 23 face penalties of at least 1.4% of annual worldwide turnover or €7 million—whichever is greater.

The NIS2 Directive makes substantial progress in unifying cybersecurity procedures across the EU. It gives Europe the tools necessary to defend networks and information systems from growing cyber threats by addressing sector-specific demands and embracing future technology. The EU will be able to navigate the digital environment safely and resiliently with the support of improved collaboration and rigorous adherence to cybersecurity measures.