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What is NIS2?
The NIS2 directive is an amendment to the existing cybersecurity law in the European Union. The introduced regulations cover a larger group of companies than before, obliging them to apply stringent procedures related to risk management and incident response.Fines for NIS2 violations
Failure to comply with the obligations arising from NIS2 may result in severe penalties for companies of up to 10 million euros or at least 2% of annual turnover (whichever is higher).What does NIS2 mean for your business?
NIS2 imposes the following obligations on companies to which it applies, including:
guaranteeing an appropriate level of security for networks and information systems
risk analysis (including determining the baseline for this aspect)
establishing incident response procedures
managing the continuity of system operations
raising employee awareness of cybersecurity through regular training
ensuring security in the supply chain
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FAQ
The Network and Information Security Directive (NIS2) is an amendment to the current cybersecurity regulations in the countries belonging to the European Union. Its aim is to enhance the protection of networks and information systems across the EU. Entities covered by the new law are required to implement a number of cybersecurity and incident reporting measures. You can find detailed information about NIS2 in our article.
The new law aims to strengthen the cyber resilience of the European Union, including through the implementation of a uniform standard of security for networks and information systems in the member states of the community. These changes are a response to the expanded range of digital threats that have emerged in Europe in recent years.
The new directive must be applied by all organisations (both private and public) that operate within the European Union and provide essential services to the market. Examples include transport companies, food producers, internet and other digital service providers, public administration units, and entities processing waste. At the same time, these entities must be classified as large or medium-sized enterprises, meaning they must exceed or meet all of the following conditions:
- employ between 50 and 250 people,
- have annual turnover between 10 and 50 million euros and a total annual balance sheet between 10 and 43 million euros.
Companies covered by NIS2 are obligated to implement cybersecurity risk management measures, including but not limited to:
- Guaranteeing an appropriate level of security for networks and information systems
- Conducting risk analysis (including determining the baseline for this aspect)
- Developing procedures for handling incidents
- Managing the continuity of system operations
- Raising employee awareness of cybersecurity through regular training
- Ensuring security in the supply chain
Depending on the classification of the company, for failure to fulfil the obligations imposed by NIS2, companies face administrative penalties of up to 10 million euros or 2% of total annual turnover (for essential entities) and 7 million euros or 1.4% of total annual turnover (for important entities). The directive also provides for the possibility of imposing periodic financial penalties.