Network and Information Systems (NIS2) Directive

The Network and Information Systems (NIS) Directive of 2016 marked the European Union’s first attempt at establishing cybersecurity benchmarks for critical infrastructure sectors. In 2023, it was revised to the  NIS2 Directive to address the shortcomings of its predecessor. 

The NIS2 Directive Explained

The NIS2 Directive enforces stringent requirements on key industrial sectors to (1) boost the resilience of critical infrastructure and essential services against cyber threats and (2) foster effective incident response and cybersecurity cooperation among EU member states.

Sectors covered under the NIS2 directive include: 

• Energy (electricity, oil, gas, district heating, and hydrogen)
• Transportation (air, rail, water, and road)
• Healthcare (including labs and research on medical devices and pharmaceuticals)
• Waste management
• Postal and courier services
• Digital infrastructure (Telecommunications, DNS, TLD, data centers, cloud services, trust services) 
• Digital services (search engines, online markets, social networks)
• Manufacturing (specifically, but not limited to, medical, transport equipment, and computer)
• Food (production, processing, and distribution)
• Chemicals (production and distribution) 
• Space

Compliance with NIS2 is essential for companies to maintain operational integrity, protect customer data, and ensure business continuity in the face of evolving cybersecurity threats.

Although the directive applies to the EU market, its implications extend internationally as non-EU companies, including suppliers working with EU companies, must still comply with NIS2 to do business in EU member states. 

Consequently, the directive also enhances the global response to cybersecurity threats by promoting information sharing and encouraging the adoption of international cybersecurity standards and best practices.

NIS2 Directive Requirements 

To comply with the NIS2 Directive, organizations operating within the EU must adhere to comprehensive requirements aimed at managing and mitigating cybersecurity risks effectively. These requirements include:

Risk management measures: Entities must implement appropriate technical and organizational measures to manage cybersecurity risks, including incident prevention, detection, and response. 

Incident reporting: Under the NIS2 Directive, organizations must report significant cybersecurity incidents to their national authorities within a specified timeframe (usually 24 hours) and provide a detailed report within 72 hours.  

Supply chain security: Businesses must assess and manage cybersecurity risks related to their supply chains, ensuring suppliers comply with relevant security requirements.  

Security policies and documentation: Organizations must establish, maintain, and regularly review security policies and documentation related to their cybersecurity measures.  

Cooperation and information sharing: Entities must participate in information-sharing initiatives and collaborate with national authorities and other stakeholders on cybersecurity threats and incidents. 

Governance and accountability: Senior management must be involved in cybersecurity governance, ensuring clear responsibilities and accountability at all organizational levels.  

Training and awareness: Organizations must provide training and awareness programs for their employees to ensure they understand cybersecurity risks and best practices. 

Resilience and recovery: Entities should implement measures to ensure resilience against cyber incidents and establish plans for recovery in the event of a security breach. 

Compliance and auditing: Under the NIS2 Directive, organizations must undergo regular assessments and audits to evaluate their compliance with the NIS2 requirements and their overall cybersecurity posture.  

How Finite State Helps Teams Comply with the NIS2 Directive

Finite State offers a comprehensive solution to support compliance with the NIS2 Directive. Here’s how Finite State can assist your teams:

• Enforcing Secure Coding Practices: Seamless integrations into existing CI/CD pipelines automatically analyze source code and compiled binaries for common security vulnerabilities and coding errors. This allows engineers to identify vulnerabilities hidden deep within legacy code and third-party libraries and detect and address issues early in the development process.
• Real-Time Threat Detection: Integrations with vulnerability databases provide up-to-date information on the latest threats and exploits, allowing for the proactive identification of potential risks before they can be exploited.
• Automate Vulnerability Identification: Using our advanced binary and source code SCA, vulnerabilities can be identified as they’re introduced across the SDLC to help teams keep applications secure.
• Comprehensive SBOM Solutions: Automatically generate Software Bill of Materials throughout the SDLC and easily compile detailed information on all components in your products, including open-source libraries, third-party dependencies, and custom code to improve transparency and identify potential security risks in your software supply chain.

Strong cybersecurity requires a collective effort. Talk to the team today to discover how Finite State can help you comply with the NIS2 Directive.