In a time of increasing cyber threats, the NIS2 Directive is transforming cybersecurity across the European Union. This directive establishes new benchmarks that extend beyond the EU, affecting organizations globally. In this blog, we’ll explore the key provisions of NIS2, its impact on organizations, and the steps needed to achieve compliance in an increasingly digital world.
The NIS2 Directive was introduced to address the growing frequency, sophistication, and impact of cyberattacks, the challenges of digital transformation, and the shortcomings of the original Network and Information Security (NIS) Directive. The original NIS Directive, implemented in 2016, was a first step toward securing critical information networks. However, it faced several challenges, including:
- Inconsistent implementation across member states: each EU country applied different cybersecurity standards, creating regulatory fragmentation.
- Expanding threat landscape: cyberattacks have become more sophisticated, targeting not only government and corporate entities but also supply chains and infrastructure.
- Gaps in enforcement and compliance: the original directive lacked strong enforcement mechanisms, making it difficult to ensure compliance.
To address these gaps, NIS2 strengthens security requirements, broadens the scope of covered entities, and imposes stricter enforcement measures to create a more unified cybersecurity framework across the EU.
Who needs to comply with NIS2?
Organizations operating in critical and high-impact sectors must comply with NIS2. These include:
- Energy and utilities: electricity, gas, and water supply networks
- Transport and logistics: air, rail, road, and maritime infrastructure
- Banking and financial services: banks, insurance providers, and payment systems
- Healthcare and pharmaceuticals: hospitals, medical research, and biotech firms
- Digital infrastructure and IT services: cloud computing, data centers, DNS providers, and telecommunications networks
Additionally, NIS2 requires organizations to comply based on specific size and revenue criteria, classifying them into two main categories:
- Essential entities: organizations with at least 250 employees, an annual turnover of EUR 50 million, or a balance sheet total of EUR 43 million. These entities face proactive monitoring, stricter regulations, and higher penalties.
- Important entities: organizations with at least 50 employees, an annual turnover of EUR 10 million, or a balance sheet total of EUR 10 million. These entities undergo audits after incidents or when compliance concerns arise.
Additionally, certain entities, regardless of their size – such as providers of public electronic communications networks or services – are also subject to NIS2 regulations.
What if the organization doesn’t comply with NIS2?
Failure to comply can lead to substantial fines, reputational damage, and increased regulatory scrutiny. The penalties include:
- For essential entities: fines of up to €10 million or 2% of annual global turnover, whichever is greater.
- For important entities: fines of up to €7 million or 1.4% of annual global turnover, whichever is greater.
Enforcement is carried out by national authorities, ensuring that regulations are adapted to align with overarching EU cybersecurity objectives.
What can you do to comply with NIS2?
To meet NIS2 requirements, organizations should take proactive steps to strengthen their cybersecurity posture. These measures include:
- A cybersecurity risk assessment: identify vulnerabilities and implement risk mitigation strategies.
- An incident response plan: establish clear procedures for detecting, reporting, and managing cyber incidents.
- Strong security controls: adopt advanced threat detection, encryption, and access management solutions.
- Training employees and raising awareness: conduct cybersecurity training programs to prevent human errors that lead to breaches.
- Engaging with national authorities: stay updated on local enforcement policies and align security measures accordingly.
Enterprise network – the secret ingredient to NIS2 compliance
By implementing a proactive cybersecurity strategy for their enterprise networks, organizations can minimize risks, improve operational efficiency, and strengthen their resilience against ever-evolving cyber threats. This approach not only helps in ensuring regulatory compliance but also fosters trust, reliability, and long-term sustainability in an increasingly digital landscape.
Extreme Network solutions provide organizations with the advanced security, visibility, and compliance tools and strategies to effectively meet NIS2 compliance requirements. Key capabilities include:
- Network visibility and risk analysis: ExtremeCloud IQ delivers comprehensive asset inventories, threat prioritization, and actionable analytics, enhancing risk assessment and management.
- Incident detection and response: ExtremeControl network access control monitors endpoints, provides incident reports, and enables rapid remediation. Extreme AirDefense offers a wireless intrusion prevention system (WIPS) with automated threat detection, reporting, and response for wireless networks.
- Supply chain security: Extreme hardware complies with ISA/IEC 62443 standards, while ExtremeCloud IQ adheres to ISO/IEC 27017, ISO/IEC 27001, and ISO/IEC 27701. It also supports compliance with major global data privacy regulations, including GDPR, and other international frameworks, ensuring secure-by-design deployments.
- Zero-trust architectures: ExtremeCloud Universal ZTNA enables identity-based zero-trust access control for networks and applications, while ExtremeControl NAC enforces least-privilege access policies to minimize security risks.
- Cybersecurity best practices: expert guidance and support to strengthen cybersecurity awareness and resilience, helping organizations enhance security posture and regulatory alignment.
These solutions empower businesses to reduce cybersecurity risks, improve compliance, and build a secure, resilient digital environment in line with NIS2 regulations. Find out how Extreme Networks can help you enhance your network security!