The Network and Information Security 2 Directive (NIS 2) is a robust EU law to strengthen cybersecurity across essential and digital services. NIS2 compliance is essential for businesses in EU Member States operating in critical sectors like energy, transport, healthcare, and more.
Businesses must adopt and publish the required NIS2 compliance measures by 17 October 2024 and apply those measures from 18 October 2024.
The 2024 Thales Data Threat report shows that 27% of organizations experienced ransomware attacks in 2024, an increase from 21% the previous year. With sectors like transport and critical infrastructure at high risk, NIS2 aims to ensure organizations adopt robust cybersecurity measures to safeguard against cyber threats.
In this guide, let’s explore why NIS2 compliance is paramount and explore the tools to facilitate compliance.
What is the NIS2 Directive?
The NIS2 Directive, formally known as Directive (EU) 2022/2555, is the European Union’s updated legislative framework to enhance cybersecurity for essential and digital services. It builds on the original NIS Directive from 2016, the first EU-wide law focusing on securing network and information systems.
Adopted in January 2023, NIS2 takes an "all-hazards" approach, addressing cyberattacks and physical disruptions. It also expands the scope of the original directive to a broader range of sectors and mandates stricter security measures against cyber threats. As the Cisco 2023 whitepaper notes,
“Around 350,000 organizations within the EU are expected to be impacted by the NIS2 Directive."
Germany's Federal Ministry of the Interior and Community has published legislation to align with the NIS2 Directive, with implementation scheduled for March 2025.
As 23% of EU businesses plan to integrate generative AI into their operations, they must ensure their innovations do not introduce new vulnerabilities.
Who must ensure NIS2 compliance?
The NIS2 Directive imposes uniform compliance requirements for medium and large organizations, operating in sectors critical to the EU's economy and security.
Eversheds Sutherland’s 2023 report notes that these sectors are classified as:
- Large organizations in these sectors, with more than 250 employees and an annual turnover of at least 50 million euros (or a balance sheet total of at least 43 million euros) are classified as essential under the NIS2 Directive. These organizations must implement strict cybersecurity measures.
- Medium-sized organizations with 50 to 250 employees and an annual turnover of up to 50 million euros (or a balance sheet total not exceeding 43 million euros) are classified as important.
However, The Directive does acknowledge that not all sectors at this scale would have a high-security impact on society.
These organizations must still adopt appropriate security measures, though their obligations are not as stringent as for large entities.
- Small and micro-enterprises with fewer than 50 employees and an annual turnover of less than 7 million euros are not directly targeted by NIS2.
However, exceptions exist if these smaller entities provide services critical to EU society or the economy.
Key NIS2 Compliance requirements you need to know
All organizations classified as essential or important under the Directive must ensure strict NIS2 compliance. Here’s what that implies:
1. Enhanced security measures
Robust technical and organizational measures are to be adopted to manage cybersecurity risks. These include:
- Establishing clear policies for risk analysis
- Supply chain security
- Securing all critical information systems
- Ensuring operational continuity during a cyber crisis
Additionally, organizations must have incident response plans, secure communication protocols, and strong access control systems to prevent unauthorized access.
Moreover, organizations using high-risk AI systems must adhere to the NIS2 Directive and the AI Act (The Artificial Intelligence Act). They need a holistic approach to NIS2 compliance, integrating cybersecurity measures with adequate AI risk management practices.
To support this, Switzerland-based training center Cyber Risk GmbH has developed the Artificial Intelligence Act Trained Professional (AIActTPro) program to equip professionals with the skills to align AI systems with NIS2 cybersecurity standards.
2. Incident reporting
Organizations must report cybersecurity incidents in three phases:
- Early warning within 24 hours
- A full incident notification within 72 hours
- A detailed final report within a month, or a progress report if the incident is ongoing
The goal is to ensure timely communication with national cybersecurity authorities, helping to limit the impact of breaches and reduce the risk of further incidents.
3. Supply chain security
Any potential vulnerabilities in supply chains should also be focused on. This can prevent security breaches.
Additionally, at the European level, the NIS2 directive aims to enhance the security of key information and communication technologies (ICT) by conducting coordinated risk assessments of critical supply chains in collaboration with Member States, the European Commission, and ENISA.
4. Risk management
Organizations must implement continuous risk analysis and clear crisis management plans. The NIS2 Directive aims to harmonize cybersecurity practices across EU member states by:
- Setting minimum regulatory standards
- Establishing mechanisms for cooperation among member states
This ensures that risk management approaches are aligned, reducing gaps in cybersecurity measures between countries.
Additionally, NIS2 emphasizes enhanced reporting obligations and coordinated efforts to address large-scale cybersecurity incidents.
To support this, the Directive establishes the European Cyber Crises Liaison Organisation Network (EU-CyCLONe) for effective crisis management during cyberattacks.
5. Liability and penalties
Failing to comply with NIS2 could lead to hefty fines. Organizations that cannot prove compliance may face sanctions, audits, and other non-financial penalties.
Administrative fines may also be imposed, either in addition to or instead of other sanctions. The maximum fine can reach up to 10 million euros or 2% of the company's annual worldwide turnover, whichever is higher. For important entities, the fine can go up to €7 million or 1.4% of annual turnover.
Local supervisory authorities are responsible for developing their policies for imposing these fines. They consider factors such as:
- The severity of the infringement
- Damage caused
- Level of cooperation with authorities
Additionally, if a NIS2-related incident qualifies as a breach under GDPR, NIS2 may refrain from imposing monetary fines but can still enforce non-financial penalties for the violation.
As organizations strive to meet NIS2 compliance requirements, selecting the right tool is essential to streamline cybersecurity practices and enhance communication.
NIS2 compliance: What makes Rocket.Chat the best platform?
Rocket.Chat provides a customizable platform that is highly collaborative and end-to-end encrypted messaging. We also ensure comprehensive compliance with the latest NIS2 Directive.
As an open-sourced tool, Rocket.Chat has over 12 million users, including organizations like The World Bank, US Navy, Credit Suisse, and so on.
Here’s what distinguishes the platform from the rest:
1. Robust security features
Rocket.Chat is ISO 27001 certified, SOC 2 compliant, and totally adheres to GDPR regulations, among other standards. This ensures organizations can reliably communicate sensitive information to all stakeholders, including customers, vendors, and partners.
Rocket.Chat has been officially recognized as a secure platform for use within the U.S. Department of Defense, specifically under their Platform One DevSecOps program.
The platform comes with several features to enhance security and compliance, such as:
- End-to-end encrypted communication: Ensure only intended recipients can access messages.
- Data loss prevention: Prevent sensitive data from being shared outside authorized channels.
- Message audit panel: Monitor and review message history, providing accountability in team communications.
- Two-factor authentication (2FA): Enhance account security before accessing accounts.
- Device management: Ensure only authorized devices can access the Rocket.Chat platform.
2. Self-hosting and cloud deployment
Gain more flexibility and complete control over your data with Rocket.Chat. You can deploy your self-hosted server using methods like Docker, Kubernetes, or Snaps.
Alternatively, opt for rapid cloud deployment on third-party providers such as Amazon Web Services (AWS) and Digital Ocean, ensuring secure communication while adhering to compliance requirements.
3. Incident reporting and monitoring
Track, report, and respond to cybersecurity incidents while ensuring secure communication with authorities.
Real-time monitoring & auditing
Detect anomalies or unauthorized access in your communication channels with real-time monitoring. Leverage Prometheus, an open-source application for event monitoring and alerting, to record application metrics in a time-series database.
This enables high-dimensional monitoring and flexible queries, providing insights into application performance and security.
Customizable alerts
Set up notifications based on specific triggers or thresholds, such as unusual user activity or unauthorized access attempts. This ensures that relevant stakeholders are promptly informed of security issues, enabling rapid response and mitigation.
With real-time alerts, teams can respond proactively, minimizing the risk of data breaches and service disruptions.
4. Open-source and customizable
As noted above, Rocket.Chat is an open-source communication platform with unmatched flexibility. Create a secure communication environment that fits your workflow and enhances productivity.
- Fully customizable: Customize the UI components and the server settings to fit your needs. White label your workspace or directly alter the codebase for a fully tailored experience.
- Community & enterprise support: Rocket.Chat’s open-source communication community is made of global users and developers who assist through forums and dedicated channels. Premium clients receive direct support and timely responses.
5. Cost-effective compliance solution for communication
As Rocket.Chat is an open-source tool, you can customize the features and configurations without the high costs associated with proprietary software. Self-host or deploy it on cloud platforms, reducing vendor lock-in and operational costs while ensuring data security.
Final note
NIS2 Compliance is critical for Modern EU Businesses to protect their digital infrastructure and services from advanced cyber threats. By adhering to NIS2 regulations, businesses can safeguard critical data, mitigate risks, and maintain operational continuity.
Using secure communication tools like Rocket.Chat ensures compliance, offering a secure environment for both internal and external communications. Rocket.Chat enhances security through advanced features like encryption, real-time monitoring, and customizable controls, making it an ideal solution for businesses aiming for NIS2-compliant collaboration.
Reach out to our team to learn more.
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