NIS 2 Overview
The Network and Information Security Directive (NIS 2) is a European Union directive designed to enhance cybersecurity and operational resilience across critical sectors. Adopted in 2023, NIS 2 replaces the original 2016 NIS Directive and establishes stronger, more harmonized cybersecurity requirements for organizations that provide essential and important services across the EU.
The directive aims to strengthen Europe’s collective defense against growing cyber threats by requiring regulated entities to implement comprehensive risk management, governance, and incident reporting measures. It also expands the scope of covered sectors, introduces accountability at the management level, and standardizes penalties across member states.
Purpose of NIS 2
NIS 2 seeks to improve the overall cyber resilience of the European Union by establishing a uniform framework for managing cybersecurity risks across both public and private entities. Its primary goal is to ensure that critical infrastructure and digital services can prevent, detect, and respond to cyber incidents effectively.
The directive introduces:
Stronger governance and accountability for executives and boards.
Common risk management standards across industries.
Enhanced cross-border cooperation among EU member states.
Strict incident reporting and supervisory mechanisms to promote transparency and rapid response.
By replacing fragmented national cybersecurity rules with a unified approach, NIS 2 ensures consistency and raises the overall cybersecurity maturity level across the EU.
Scope and Applicability
NIS 2 significantly broadens the range of organizations covered under the directive, categorizing them as either Essential Entities or Important Entities.
Essential Entities include:
Energy, transport, banking, financial market infrastructure, healthcare, and digital infrastructure providers.
Public administrations at national and regional levels.
Important Entities include:
Waste management, manufacturing, postal services, food production, research, and other key industries.
The directive also applies to providers of digital services (such as cloud computing, data centers, and managed service providers) that play a critical role in supporting these sectors.
Organizations outside the EU that offer services within the Union are also subject to NIS 2 requirements if they impact the delivery of critical services to EU customers.
What the Directive Covers
NIS 2 sets out detailed cybersecurity risk management and governance obligations, including:
Risk Management Measures: Entities must adopt administrative, technical, and operational measures to manage security risks, including policies for incident prevention, detection, and response.
Governance and Accountability: Boards and management must oversee cybersecurity strategy and can be held personally liable for non-compliance.
Incident Reporting: Major incidents must be reported to national authorities within 24 hours of discovery, with a final report submitted within 72 hours.
Business Continuity and Crisis Management: Entities must maintain business continuity and disaster recovery plans to ensure operational resilience.
Supply Chain Security: Organizations must assess and manage cybersecurity risks associated with third-party vendors and ICT service providers.
Vulnerability and Patch Management: Ongoing identification and remediation of vulnerabilities in systems and applications.
Encryption and Access Controls: Application of strong authentication and data protection measures.
Information Sharing: Collaboration with national authorities and industry peers to exchange threat intelligence and best practices.
Certification and Enforcement
NIS 2 does not establish a certification program but enforces supervisory oversight through national competent authorities.
Each EU member state designates supervisory bodies responsible for monitoring compliance and imposing penalties for violations.
Non-compliance can result in significant administrative fines:
Up to €10 million or 2 percent of global annual turnover for Essential Entities.
Up to €7 million or 1.4 percent of global turnover for Important Entities.
Supervisory authorities have the power to conduct audits, request documentation, and issue corrective measures or temporary bans in severe cases.
Implementation and Continuous Compliance
NIS 2 requires a proactive, risk-based approach to cybersecurity, with organizations expected to continuously assess and improve their resilience. To achieve and maintain compliance, entities should:
Perform regular risk and vulnerability assessments.
Develop and test incident response and crisis management procedures.
Conduct cybersecurity training for executives and staff.
Review supplier risk management practices.
Document all security controls and updates for supervisory inspections.
Integrate NIS 2 requirements with complementary frameworks such as ISO 27001, DORA, and CIS v8.1 for unified security governance.
Implementation deadlines vary by member state, as each must transpose the directive into national law.
NIS 2 in DSALTA
DSALTA provides a centralized environment for managing NIS 2 compliance through mapped controls, readiness dashboards, and evidence tracking.
Within DSALTA, users can:
Map NIS 2 obligations to existing security policies and technical tests.
Assign control ownership for governance, risk, and incident management.
Upload audit reports, training records, and vendor assessments.
Monitor real-time readiness and generate compliance summaries for regulators.
While DSALTA streamlines operational compliance, entities should engage legal counsel and national cybersecurity authorities to ensure full alignment with local transpositions of the directive.