Summary
The NIS2 Directive establishes a new standard for enhancing cybersecurity throughout the European Union, mandating that organizations implement advanced tools and platforms to comply with its stipulations or risk significant penalties. Balbix provides a robust array of capabilities that enables organizations in critical industries to not only meet the directive’s requirements but also bolster their overall cybersecurity posture.
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For international companies operating in Europe, particularly in key sectors, the NIS2 Directive (Network and Information Systems) marks a significant update to cybersecurity regulations. This directive is pivotal in strengthening cybersecurity across the European Union, so compliance is not optional. The stakes are high: companies that fail to adhere to these new cybersecurity requirements face substantial penalties. It’s a critical moment for European businesses, as the EU takes decisive action to enhance its digital security landscape. Ensuring compliance with the NIS2 Directive is not just about avoiding fines; it’s about contributing to a more secure digital environment across the continent.
NIS vs. NIS2: More Consistency, Stronger Controls
The difference between NIS, with which you are no doubt familiar, and NIS2 is that the option to tailor adherence to directive requirements was eliminated since there was too much flexibility under the original NIS, which led to vulnerabilities. In addition, NIS2 applies consistently across the EU and specifies the rules everyone must follow. These new requirements and obligations fall into four overarching areas: risk management, corporate accountability, reporting obligations, and business continuity. They demand that entities adopt adequate technical, operational, and organizational measures to manage network and information systems risks.
While NIS2 can be complex, Balbix can help address NIS2 Directive’s requirements and mitigate the risk of non-compliance.
NIS2 & Dora: Overlap or Complement?
It is important to note that, when you make cyber security investments, consider NIS2 and DORA together since there is quite a bit of overlap between the two directives:
- Emphasize the importance of operational resilience and ICT risk management.
- Mandate timely reporting of significant cyber incidents to relevant national or EU authorities.
- Highlight the need for stringent oversight and management of third-party and ICT service providers.
- Call for regular testing and audits to assess the effectiveness of cybersecurity measures and operational resilience frameworks.
DORA and NIS2 also serve complementary objectives. DORA is more focused on the financial sector’s operational resilience, addressing the need for a financial system that remains stable and functional despite ICT-related disruptions. NIS2, on the other hand, aims at a broader enhancement of cybersecurity practices across key sectors vital to the economy and society, recognizing the interconnected risks that span across different industries.
Together, DORA and NIS2 represent a comprehensive approach to improving the cybersecurity posture and operational resilience of critical sectors in the EU, ensuring that both financial and non-financial entities are equipped to handle and recover from cyber threats and incidents.
How Balbix Helps
By automating the identification, assessment, and mitigation of cyber risks, Balbix reduces the manual effort required, allowing organizations to focus on strategic initiatives rather than compliance alone. However, here’s how Balbix can help with addressing the NIS2 Directive:
The High Cost of Non-Compliance
The consequences of non-compliance with the NIS2 Directive are severe, with fines reaching up to €10 million or 2% of global annual revenue for Essential Entities and €7 million or 1.4% for Important Entities. NIS2 has teeth just like GDPR.
Essential vs. Important Entities
The NIS2 Directive categorizes entities as “Essential” and “Important” to ensure the resilience and security of network and information systems. Essential Entities operate within critical sectors such as healthcare, energy, transportation, banking, digital infrastructure, water supply, and distribution. Disruptions of these Entities could have a major impact on national security, economic stability, or public safety.
Important Entities, while still significant, operate in sectors that are less critical but where an incident could still pose considerable risks to the public interest or societal functions.
Essential Entities must comply with NIS2, while Important Entities are subject to ex-post supervision, where penalties will only be levied if authorities receive evidence of non-compliance. Penalties for non-compliance are much higher for Essential Entities than for “important” ones.
Conclusion
As the NIS2 Directive sets a new benchmark for cybersecurity in the EU, organizations must adopt sophisticated tools and platforms to meet its requirements. Balbix emerges as a powerful ally in this endeavor, offering a comprehensive suite of features that align with the directive’s mandates. Through AI, automation, real-time insights, and a holistic approach to cyber risk management, Balbix not only ensures compliance with the NIS2 Directive but also enhances an organization’s overall cyber resilience. In the face of increasing cyber threats, the combination of Balbix and the NIS2 Directive represents a forward-thinking approach to cybersecurity. This approach prioritizes resilience, compliance, and the proactive management of cyber risks.
To learn how Balbix’s AI-powered cyber risk management solutions can help you navigate the NIS2 requirements, Download our ‘NIS2: Everything you Need to Know to Stay Compliant’ eBook.