The NIS2 Directive is a landmark piece of European cybersecurity legislation that strengthens and expands upon the original NIS Directive (Network and Information Systems Directive). It aims to enhance the resilience of critical infrastructure across the EU by establishing baseline cybersecurity requirements for a broader range of sectors and organizations.
Below, we break down the most pressing questions surrounding NIS2 and its implications for your business.
Table of Contents:
The NIS2 Directive, officially known as Directive (EU) 2022/2555, is the European Union’s updated framework for cybersecurity risk management and reporting. It replaces the original NIS Directive and introduces stricter obligations for incident reporting, risk management, governance, and oversight. NIS2 significantly increases the scope of covered entities, enforces supply chain security measures, and enhances EU-wide collaboration.
The directive reflects growing concerns over ransomware, supply chain attacks, and digital infrastructure dependencies, mandating a more proactive, risk-based approach to cyber resilience.
NIS2 compliance refers to meeting the technical, operational, and organizational requirements set by the directive. This includes:
Implementing robust cybersecurity risk management practices
Reporting incidents within tight timelines (24–72 hours)
Ensuring business continuity and crisis management
Establishing multi-level governance structures for oversight and accountability
Conducting regular vulnerability assessments and supply chain evaluations
Failure to comply with NIS2 can result in substantial penalties, reputational damage, and increased regulatory scrutiny.
NIS2 applies to a wider range of sectors and companies than its predecessor. It classifies affected entities into two categories:
Essential Entities – organizations in sectors like energy, transport, banking, health, water, and digital infrastructure.
Important Entities – sectors such as manufacturing of critical products, postal services, and waste management.
The directive generally applies to medium and large organizations (typically those with over 50 employees and a turnover of € 10 M or more), including public and private sector entities that operate critical or essential services. However, individual member states may extend the scope to smaller entities where justified.
EU Member States must transpose the NIS2 Directive into national law by 17 October 2024. After that date, enforcement begins, and organizations falling under the directive’s scope must be fully compliant.
Businesses should act now to assess their readiness, remediate gaps, and implement necessary governance and security controls before the deadline.
NIS2 directly confronts the growing risk of supply chain attacks by requiring organizations to:
Assess the supplier's cybersecurity posture
Embed security obligations in contracts with third parties
Monitor third-party risk exposure
Ensure continuous oversight of outsourced IT/OT systems
In short, NIS2 emphasizes that cybersecurity is no longer confined to internal systems. It must extend across the entire ecosystem. Organizations will need solutions that unify visibility across both first-party and third-party risks, allowing them to demonstrate due diligence in managing supply chain threats.
Recommended: Explore the top Third-party risk management platforms and how they can help you meet NIS2 compliance requirements.