NIS2 Compliance? Your Most Common Questions Answered
Navigating NIS2 compliance can feel overwhelming, especially with its strict requirements and the constantly changing cybersecurity landscape. As compliance with NIS2 becomes an urgent regulatory obligation, we have observed an increase in your questions directed to Neurosoft experts. To help address these concerns, we have compiled a collection of the most frequently asked questions in this blog post.
What is the cost of NIS2 compliance compared to the cost of non-compliance?
While NIS2 compliance involves upfront costs, such as investments in technology, training, audits and incident response preparation, non-compliance can be far more expensive.
Potential costs of non-compliance include:
- Regulatory fines: Up to €10 million or 2% of global turnover
- Reputational damage: Loss of customer trust and market share
- Operational impact: Recovery from data breaches or cyberattacks is significantly costlier without robust defenses
On the other hand, compliance not only avoids these risks but also:
- strengthens organizational resilience,
- enhances customer confidence,
- aligns with global cybersecurity the best practices.
However, navigating the landscape of compliance isn’t a gamble. It’s imposed by law because the stakes are high. Beyond just avoiding the hefty fines of non-compliance and fulfilling legal obligations, the advantages of NIS2 compliance are impressive and far-reaching.
What specific risks does NIS2 address that are unique compared to other standards or regulations like ISO 27001 or GDPR?
The NIS2 Directive specifically focuses on enhancing cybersecurity resilience across critical sectors. While ISO 27001 provides a systematic approach to managing sensitive information, and GDPR focuses on protecting personal data, NIS2 adopts a broader approach, targeting cybersecurity in essential services and critical infrastructure.
The unique risks addressed by NIS 2 are the following:
- Sector-Specific Cybersecurity Risks
- Supply Chain and Third-Party Risk
- Accountability for Board Members
- Incident Reporting and Response
- Operational Continuity Risks
- Cross-Border and EU-Wide Coordination
- Standardized Approach Across Member States
Board members are accountable under the NIS2 directive but may lack cybersecurity expertise. How can organizations empower them to fulfill oversight responsibilities while keeping them engaged and informed without overwhelming technical details?
To empower board members under the NIS2 directive, organizations should offer clear, risk-focused cybersecurity briefings that translate technical threats into their business implications, enabling stakeholders to make informed decisions and allocate resources effectively. How can organizations achieve this?
- Board Members’ Empowerment: Regular executive training and company-wide cybersecurity workshops can enhance board members’ understanding without overwhelming participants with technical jargon. Additionally, simulated cyber incident exercises (tabletop) can clarify their governance and crisis management roles and enhance their proactive engagement in cybersecurity oversight.
- Risk quantification: Risk quantification translates cybersecurity threats into financial impacts, helping board members make informed decisions that align security investments with business priorities. It allows for strategic risk prioritization, efficient resource allocation and assessment of whether cybersecurity measures support business objectives and compliance requirements like NIS 2. Engaging cybersecurity experts to deliver concise reports and actionable insights, leading to risk quantification, ensures board members are well-prepared to track improvements and measure the effectiveness of security strategies over time. Moreover, it enables them to approve necessary risk-based technical measures aimed at enhancing business resilience, oversee the implementation and monitor risk levels effectively.
NIS2 requires reporting significant cybersecurity incidents. How can an MSSP enhance detection, classification and reporting through its SOC and Incident Response services to ensure compliance?
NIS2 imposes strict incident reporting requirements, requiring organizations to:
- Notify authorities within 24 hours of detecting a significant cybersecurity incident.
- Provide an initial assessment within 72 hours with details on impact and mitigation.
- Submit a final report within one month, including root cause analysis.
An MSSP that offers SOC and Incident Response (IR) services plays a critical role in ensuring compliance by:
- Incident Classification & Escalation
Incidents are prioritized based on predefined classification criteria that align with NIS2 compliance requirements. This process helps assess whether an incident meets the necessary thresholds for reporting under NIS2. It enables organizations to determine when and how to report incidents as needed.
- Incident Containment & Remediation
Guidance on mitigation and recovery ensures regulatory expectations for incident resolution are met. Digital forensics capabilities help determine the root cause and the MSSP’s IR team provides immediate containment actions.
- Compliance & Documentation
The MSSP maintains audit trails and provides compliance-ready incident reports. It also assists in post-incident reviews and security improvements to help mitigate the risk of future incidents.
However, when we talk about incident reporting, we acknowledge that an incident has occurred. In contrast, SOC services focus on preventing those incidents from happening in the first place. The SOC service offers a holistic security strategy that prioritizes your overall security posture while ensuring regulatory compliance. By leveraging Neutrify Threat Detection and Incident Response expertise, our customers can achieve rapid detection, response and regulatory compliance with NIS2 reporting requirements.
NIS2 mandates that organizations confront third-party risks. But how can we effectively manage risks that are beyond our direct control?
Mitigating third-party risks, to achieve NIS2 compliance, requires a structured approach that includes assessment, monitoring and enforcement. How can you achieve this effectively?
- Third Party Risk Assessment
When it comes to managing third-party risks, a proactive approach is essential. Start by breaking down your assessment process into two key areas: A) Regulatory audits using detailed questionnaires and B) Technical audits and scans
The first step is to identify and categorize your third parties, paying close attention to their access to your sensitive data and systems. Thorough due diligence is crucial before bringing any vendor on board. Utilize platforms that provide valuable insights to monitor vendor security postures in real-time—these tools can be game-changers. But remember, your responsibility doesn’t end there. Continuous monitoring, regular reviews and audits are critical to maintaining security over time. Don’t hesitate to ask your vendors for security certifications or self-assessments throughout your partnership. Regular compliance audits and technical scans can provide peace of mind and enhance accountability.
- Contractual Security Requirements
It’s also vital to prioritize security within the contractual framework. Ensure that contracts with third parties include essential security clauses, such as compliance with NIS 2 regulations, requirements for regular audits and clear incident reporting obligations.
- Incident Response & Contingency Planning
When it comes to incident response and contingency planning, uncertainty is a constant companion. That’s why it’s crucial to set up a well-defined process for managing third-party security incidents. This includes clear escalation procedures and robust contingency plans that keep your organization resilient in the face of challenges. To ensure your team is truly prepared, consider running tabletop exercises that simulate various scenarios. This not only sharpens your response skills but also builds confidence in your plan.
Do you have more questions about NIS2 compliance? Contact a Neurosoft expert!
