NIS Directive Overview

Network and Information Systems Directive

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What is the NIS Directive?

The Network and Information Systems (NIS) Directive is the first EU-wide cybersecurity legislation. It aims to achieve a high common level of cybersecurity across the European Union by establishing security and incident reporting requirements for operators of essential services and digital service providers.

The NIS Directive applies to critical infrastructure sectors and digital service providers, requiring them to implement appropriate security measures and report significant incidents to national authorities. It was updated by NIS2 Directive in 2022 to expand scope and strengthen requirements.

NIS Directive Scope

Operators of Essential Services (OES)

  • • Energy (electricity, oil, gas)
  • • Transport (air, rail, water, road)
  • • Banking and financial market infrastructure
  • • Health sector
  • • Drinking water supply and distribution
  • • Digital infrastructure

Digital Service Providers (DSP)

  • • Online marketplaces
  • • Online search engines
  • • Cloud computing services
  • • Social networking platforms

Key NIS Requirements

Security Requirements

  • • Appropriate and proportionate technical and organizational measures
  • • Risk management and security policies
  • • Incident handling and business continuity management
  • • Supply chain security
  • • Security monitoring and testing

Incident Reporting

  • • Notify competent authority without undue delay
  • • Report significant incidents within 72 hours
  • • Provide incident impact assessment
  • • Notify users and customers when appropriate

Cooperation and Information Sharing

  • • Cooperate with competent authorities
  • • Provide information and access for inspections
  • • Participate in information sharing initiatives
  • • Support cross-border cooperation

NIS2 Directive Updates

Expanded Scope

  • • More sectors covered (waste management, food, manufacturing)
  • • Lower size thresholds for coverage
  • • Additional digital services
  • • Supply chain security requirements

Enhanced Requirements

  • • Management body liability and accountability
  • • Enhanced incident reporting (24 hours for significant incidents)
  • • Risk management and security policies
  • • Cybersecurity training and awareness

Required Security Measures

Risk Management

  • • Risk assessment and analysis
  • • Risk treatment and mitigation
  • • Regular risk reviews and updates

Access Control

  • • User access management
  • • Privileged access controls
  • • Multi-factor authentication

Monitoring and Detection

  • • Security monitoring systems
  • • Intrusion detection and prevention
  • • Security event logging

Incident Response

  • • Incident response procedures
  • • Business continuity planning
  • • Crisis communication

Supply Chain Security

  • • Supplier security requirements
  • • Third-party risk management
  • • Vendor security assessments

Training and Awareness

  • • Cybersecurity training programs
  • • Security awareness campaigns
  • • Regular security updates

NIS Compliance Implementation

1

Scope Assessment

Determine if your organization falls under NIS scope and identify applicable requirements.

2

Gap Analysis

Assess current cybersecurity posture against NIS requirements and identify gaps.

3

Security Implementation

Implement required security measures, policies, and procedures.

4

Incident Response

Establish incident reporting procedures and communication channels with authorities.

5

Ongoing Compliance

Maintain compliance through regular assessments, training, and continuous improvement.

NIS Penalties and Enforcement

Administrative Fines
  • • Up to €10 million or 2% of annual turnover
  • • Up to €20 million or 4% of annual turnover for repeated violations
  • • Additional penalties for non-compliance with incident reporting
Enforcement Actions
  • • Compliance orders and corrective measures
  • • Public naming of non-compliant organizations
  • • Suspension of services in severe cases
  • • Management liability and personal accountability

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