Introduction
With the increasing threat of cyberattacks across Europe, the NIS2 Directive (Network and Information Security 2) is set to reshape how organizations approach cybersecurity. This new regulation, an update to the original NIS Directive, introduces stricter requirements for risk management, incident reporting, and supply chain security.
If your business operates in a critical or important sector—such as energy, healthcare, or finance—NIS2 compliance is not optional. Non-compliance can lead to hefty fines and reputational damage. But what does this mean for your organization, and how can you prepare?
This blog will break down the key aspects of NIS2, its impact on businesses, and practical steps to ensure compliance.
Scope and Impact
The NIS2 Directive expands its reach to include a broader range of sectors and entities than its predecessor. While the original directive primarily targeted operators of essential services and digital service providers, NIS2 now covers additional industries, including:
- Telecommunications
- Public administration
- Waste and water management
- Food production
- Postal and courier services
Notably, it applies to both public and private entities with at least 50 employees or an annual turnover and balance sheet total of at least €10 million. This expansion means that approximately 100,000 new entities across the EU will need to comply with the directive’s stringent cybersecurity requirements.
Check now if NIS2 impacts your organization
Key Changes Introduced by NIS2
NIS2 introduces several pivotal changes aimed at strengthening cybersecurity frameworks across the EU.
1. Enhanced Security Measures
Organizations must implement comprehensive risk management practices, including:
- Incident handling policies
- Business continuity plans
- Encryption for data protection
- Regular security audits
2. Stricter Incident Reporting
NIS2 requires rapid reporting of cyber incidents to relevant authorities:
- Initial notification: Within 24 hours of detecting an incident
- Detailed report: Within 72 hours
- Final assessment: Within one month
These measures ensure a quick and coordinated response to cyber threats.
3. Supply Chain Security
Organizations must assess the security risks associated with their suppliers and service providers. Cybersecurity is no longer just an internal issue—businesses must ensure third-party compliance to mitigate risks.
4. Governance and Accountability
Senior management is now directly accountable for ensuring cybersecurity compliance. Executives must:
- Approve cybersecurity policies
- Oversee risk management strategies
- Be personally liable for non-compliance
Failure to comply can result in heavy fines or even temporary bans on company leadership from holding management positions.
Purpose of NIS2
The primary objective of NIS2 is to strengthen the EU’s collective cybersecurity posture by:
- Creating uniform security standards across industries
- Enhancing cooperation between EU member states
- Reducing cyber vulnerabilities that threaten essential services
- Improving cyber resilience to protect businesses and citizens
Cyber threats are growing in complexity, and NIS2 aims to ensure business continuity and protect Europe’s digital infrastructure from cybercrime.
How to Respond to Cyber Attacks Under NIS2
To comply with NIS2, organizations must adopt a structured approach to handling cybersecurity incidents.
1. Preparation
- Develop incident response plans with clear roles and responsibilities
- Conduct regular cybersecurity training and simulations
2. Detection and Analysis
- Implement threat monitoring tools to identify cyberattacks in real time
- Conduct forensic analysis to assess the scope of incidents
3. Containment and Eradication
- Isolate affected systems to prevent further damage
- Identify and remove vulnerabilities to stop attackers from regaining access
4. Recovery
- Restore affected services as quickly as possible while ensuring that the root cause is addressed
- Apply additional security controls to prevent future incidents
5. Post-Incident Review
- Conduct a detailed review of the attack to identify weaknesses
- Adjust security policies and strengthen defenses accordingly
The EU Cybersecurity Act supports NIS2 by providing a certification framework to assess cybersecurity compliance across different sectors.
Required Measures for Compliance
To meet NIS2 requirements, organizations must implement the following measures:
Risk Assessments
- Conduct regular evaluations to identify and mitigate cyber threats
Security Policies
- Establish strict policies for data protection, access control, and incident response
Supply Chain Management
- Evaluate the security practices of third-party providers and ensure contractual compliance with cybersecurity policies
Continuous Monitoring
- Deploy real-time monitoring systems to detect and prevent cyber threats before they cause harm
Employee Training
- Educate staff on best cybersecurity practices and their roles in securing company assets
Many cyber-attacks start with human error—training employees can prevent a significant number of phishing and social engineering attacks.
What Happens If You Don’t Comply?
Organizations that fail to meet NIS2 requirements face severe penalties:
- Fines of up to €10 million or 2 percent of global turnover, whichever is higher
- Reputational damage and potential loss of business opportunities
- Temporary bans for company executives in cases of repeated violations
How to Prepare for NIS2 Compliance
Follow these steps to ensure your organization meets NIS2 requirements:
- Assess your current cybersecurity posture and identify gaps
- Update cybersecurity policies to ensure compliance with NIS2 standards
- Enhance monitoring and incident response capabilities by investing in real-time detection tools
- Engage with third-party security experts to conduct independent cybersecurity audits
- Educate and train employees to reduce human error and enhance awareness
By taking proactive measures, your organization can enhance resilience and stay ahead of evolving cyber threats.
How Logstail can Help you
| NIS2 Principle | Logstail Solution / Process |
|---|---|
| Risk Analysis & IT Security Assessment | Logstail SIEM provides real-time log monitoring, threat detection, and risk assessment, allowing organizations to identify vulnerabilities and take proactive security measures. Automated reporting ensures compliance with NIS2 documentation requirements. |
| Incident Management | Logstail Platform enables automated incident detection, correlation of security events, and centralized response management. Our security operations center (SOC) ensures 24/7 monitoring and rapid incident response. |
| Business Continuity Measures (Backup, Disaster Recovery, Crisis Management) | Logstail provides expert consulting services on cloud-based logging, backup solutions, disaster recovery planning, and log retention policies. We help organizations ensure business continuity by guiding them on how to protect data against cyber threats and comply with NIS2 standards. |
| Supply Chain Security | Our platform includes third-party risk monitoring and anomaly detection to assess supplier security. Automated alerts notify organizations of potential threats in their supply chain infrastructure. |
| Security in Acquisition, Development & Maintenance of Systems | Logstail provides expert consulting services on integrating security into the software development lifecycle (SDLC). We guide organizations on best practices for vulnerability scanning, patch management, and reducing risks in system maintenance, ensuring security is embedded throughout development and operations. |
| Policies & Procedures for Evaluating Cyber Risk Management Measures | Logstail SIEM provides custom dashboards and risk reports, ensuring compliance with regulatory frameworks. Our solution allows for continuous security assessment and real-time insights into cyber risks. |
| Cybersecurity Best Practices & Staff Training | Security awareness is critical. Logstail offers automated alerts to detect risky actions. Additionally, our platform integrates with the Logstail Academy to educate employees on cybersecurity best practices, ensuring a proactive approach to security across your organization. |
| Encryption & Cryptographic Policies | Logstail’s solutions support data encryption at rest and in transit, ensuring compliance with NIS2 encryption requirements. Our platform allows businesses to enforce cryptographic policies and track encryption key usage. |
| Access Control, Identity Management & Asset Security | Logstail enables role-based access control (RBAC), multi-factor authentication (MFA) enforcement, and identity verification through log monitoring and anomaly detection. Our solutions integrate with Active Directory (AD) and Microsoft Entra ID for centralized user management. |
| Multi-Factor Authentication, Secure Communications & Emergency Communication Channels | Logstail enhances secure communication by monitoring logs for unauthorized access attempts and MFA bypass attempts. Our solutions integrate with Microsoft security tools and endpoint security solutions to ensure encrypted voice, video, and text communications. |
