What Is the NIS2 Directive?
The NIS2 Directive (Directive (EU) 2022/2555) is the European Union’s updated framework for strengthening cybersecurity across all member states. Adopted in 2023 as the successor to the original NIS Directive (2016), it aims to increase the level of protection against digital threats and improve the overall resilience of critical infrastructure.
Unlike its predecessor, NIS2 has a broader scope and stricter security requirements, ensuring that both public and private organizations implement effective cybersecurity measures and report major incidents swiftly.
Evolution from NIS1 to NIS2
The first NIS Directive focused mainly on essential services such as energy, transport, and digital infrastructure. However, as cyber threats became more sophisticated, the EU recognized the need for a more inclusive and harmonized approach.
NIS2 expands its reach to include more sectors, imposes stronger penalties for non-compliance, and introduces direct accountability for senior management.
Why NIS2 Was Introduced
The European Commission introduced NIS2 to address growing cybersecurity risks such as ransomware, data breaches, and state-sponsored attacks. The goal is to establish a common high level of cybersecurity throughout the EU and ensure that organizations handling essential services are both resilient and transparent in how they manage risks.
Scope and Applicability of NIS2
Sectors Covered Under NIS2
The directive applies to organizations that provide essential and important services. These include:
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Energy and transport
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Healthcare and public health
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Water supply and waste management
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Digital infrastructure and cloud computing
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Food production and distribution
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Public administration
NIS2 for SMEs and Public Institutions
Medium-sized enterprises and public institutions that play a critical role in society are now included under NIS2. This means even smaller organizations must adopt structured cybersecurity policies and comply with incident reporting obligations.
Key Requirements and Obligations
To meet the requirements of NIS2, organizations must:
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Conduct risk assessments regularly.
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Establish incident response procedures.
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Secure supply chain partners.
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Ensure executive accountability for cybersecurity.
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Maintain continuous monitoring of systems and threats.
Risk Management and Governance
Organizations must adopt a top-down approach, ensuring management actively participates in cybersecurity oversight. Governance models should define clear responsibilities and escalation protocols.
Incident Reporting Requirements
All significant cybersecurity incidents must be reported within 24 hours to the competent national authority or CSIRT. Updates and final reports are required as more information becomes available.
Supply Chain Security
NIS2 places particular emphasis on supply chain resilience. Organizations are responsible not only for their own systems but also for the cybersecurity posture of their suppliers and subcontractors.
NIS2 Compliance Checklist
| Step | Action | Description |
|---|---|---|
| 1 | Identify critical assets | Map essential IT and OT systems |
| 2 | Assess risks | Perform vulnerability and risk analysis |
| 3 | Implement controls | Apply security measures and monitoring |
| 4 | Establish reporting process | Create a 24-hour incident report workflow |
| 5 | Train staff | Build cybersecurity awareness programs |
| 6 | Review supply chain | Assess vendor cyber maturity |
| 7 | Audit and improve | Regularly test and optimize controls |
Penalties for Non-Compliance
Failure to comply with the NIS2 directive can result in hefty administrative fines, reaching up to €10 million or 2% of the organization’s total global turnover — whichever is higher. Moreover, management can be held personally liable for negligence in cybersecurity governance.
How to Become NIS2 Compliant
Technical and Organizational Measures
Compliance requires integrating both technical safeguards and organizational frameworks, including:
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Multi-factor authentication
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Encryption and access control
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Continuous vulnerability management
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Business continuity and recovery plans
Monitoring and Continuous Improvement
NIS2 is not a one-time project — it demands continuous improvement. Regular audits, penetration testing, and performance reviews help ensure ongoing compliance.
NIS2 and Supply Chain Management
Your cybersecurity is only as strong as your weakest supplier. Under NIS2, companies must evaluate and manage third-party risks, ensuring vendors meet minimum security standards and contractual obligations.
Tools and Platforms for NIS2 Compliance
Numerous digital platforms now assist with compliance automation — from risk dashboards and vulnerability tracking to supplier monitoring and incident reporting.
For example, ENISA provides valuable resources and frameworks for EU organizations seeking structured cybersecurity guidance.
Benefits of NIS2 for EU Organizations
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Enhanced cybersecurity maturity
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Improved supply chain resilience
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Increased trust among customers and partners
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Greater alignment with EU-wide standards
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Reduced financial losses from cyberattacks
Frequently Asked Questions (FAQs)
1. What is NIS2?
NIS2 is the EU directive for cybersecurity, replacing the original 2016 NIS law to strengthen resilience across critical sectors.
2. Who does NIS2 apply to?
It applies to essential and important entities, including energy, transport, healthcare, and public administration.
3. What are NIS2 reporting deadlines?
Major incidents must be reported within 24 hours to the competent authority.
4. What are NIS2 penalties?
Organizations may face fines of up to €10 million or 2% of global revenue.
5. How does NIS2 affect supply chains?
Companies are now accountable for their suppliers’ cybersecurity practices.
6. How can I prepare for NIS2 compliance?
Perform a risk assessment, establish policies, train employees, and monitor supplier risks.
How RiskStudio Helps Organizations with NIS2 Compliance
Achieving and maintaining NIS2 compliance can be challenging — especially when it comes to managing third-party cybersecurity risks.
That’s where RiskStudio comes in.
RiskStudio provides an automated platform that gives organizations full visibility into the cyber resilience of their suppliers, partners, and internal departments.
Without lengthy questionnaires or audits, you can:
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Monitor real-time security signals such as vulnerabilities, breaches, and ransomware activity
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Group suppliers by critical assets or business units
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Assign owners and track mitigation actions
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Demonstrate compliance with NIS2 supply chain requirements
Whether you’re preparing for an audit, assessing risk exposure, or improving governance, RiskStudio helps you stay ahead of NIS2, with clarity, speed, and actionable data.
Conclusion: Building Cyber Resilience Across Europe
The NIS2 Directive marks a major leap forward in Europe’s cybersecurity landscape. By prioritizing governance, accountability, and resilience, it ensures that organizations across the EU can better protect themselves — and their customers — from growing digital threats.