NIS2

What is NIS2 and how does it impact manufacturing and distribution organizations?

What is NIS2?

The Network and Information Security 2 (NIS2) Directive is the European Union's (EU) latest and most comprehensive cybersecurity framework. It's designed to bolster the cyber resilience beyond just critical infrastructure sectors – now including manufacturing and distribution – by addressing the shortcomings and inconsistencies of the previous NIS Directive. If your organization operates within the EU or interacts with EU entities, understanding and complying with NIS2 is not just advisable, it's essential.

Key Timeline Moments

January 2023

NIS2 Directive officially comes into force, signaling a new era of cybersecurity regulation in the EU.

October 17, 2024

The deadline for EU member states to transpose NIS2 into their national laws. This marks the start of enforcement and the need for full compliance.

Ongoing

Cybersecurity is a continuous process. Organizations must remain vigilant and adapt to evolving threats and technologies to maintain compliance over time.

Our Mission

Expanded Scope

NIS2 casts a wider net, encompassing more manufacturing and distribution subsectors than its predecessor. This means a broader range of businesses will be subject to its requirements.

Stricter Requirements

Prepare for heightened scrutiny in several key areas:
Risk Management: NIS2 mandates more comprehensive risk assessments and mitigation strategies.
Incident Reporting: Organizations must promptly report cybersecurity incidents to relevant authorities.
Supply Chain Security: Ensuring the security of your supply chain is now a critical compliance component.
Cyber Insurance: NIS2 may encourage or even mandate the acquisition of cyber insurance in certain cases.

Fines for Non-Compliance

The stakes are high. Organizations failing to meet NIS2 standards face substantial financial penalties. Read more detailed information here, along with the summary below: 

NIS2 introduces significant financial penalties for non-compliance, differentiating between essential and important entities.

Essential Entities

These are organizations operating in critical sectors like energy, transport, healthcare, and digital infrastructure.
Incident Reporting: Organizations must promptly report cybersecurity incidents to relevant authorities.

Important Entities

  • This category includes entities in sectors like manufacturing, postal services, public administration, and waste management.
  • Member states must impose fines of at least €7,000,000 or 1.4% of the entity's global annual revenue, whichever is higher.

These are the minimum fines that member states must set. They have the discretion to impose even higher penalties if they deem it necessary.In addition to fines, NIS2 also allows for other penalties like:

  • Periodic penalty payments: These can be imposed if non-compliance continues after an initial fine.
  • Temporary bans: Individuals responsible for non-compliance may be temporarily banned from managerial positions.
  • Orders to comply: Authorities can issue orders requiring entities to take specific actions to achieve compliance.

The exact penalties will vary depending on the specific circumstances of the non-compliance, the severity of the risk, and the national laws of each member state.

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‍Impact on Manufacturing and Distribution (Outside the EU):

  • Supply Chain Pressure: Even if your organization operates outside the EU, you may face pressure to comply with NIS2 standards from your EU-based customers and partners.
  • Increased Cybersecurity Awareness: NIS2 is setting a new global benchmark, influencing cybersecurity expectations across industries worldwide.

How Industrial DevOps Can Help with NIS2 Compliance:

  • Visibility and Control: Industrial DevOps practices, like those enabled by Copia Automation's Git-based Source Control, provide comprehensive visibility into your codebase, allowing for better change management, traceability, and accountability.
  • Secure Backups: DeviceLink, another tool within the Copia Industrial DevOps Platform, facilitates secure, automated backups, critical for disaster recovery and maintaining business continuity in the face of cyberattacks.
  • Automation: Automating key security processes (testing, monitoring, reporting) not only streamlines compliance but also frees up resources for proactive threat hunting and response.
  • Collaboration: Industrial DevOps fosters better collaboration between IT and OT teams, crucial for implementing and maintaining effective cybersecurity measures.

Copia Automation's Industrial DevOps Platform:
Your Compliance Partner

  • Copia Automation's platform is tailor-made to address the unique needs and challenges of industrial organizations, including Cybersecurity. With tools like Source Control and DeviceLink, you're equipped to manage your codebase, protect your data, and build a more resilient infrastructure that aligns with NIS2 requirements.

Next Steps for Compliance and Success:

  1. ‍Assess Your Risk: Conduct a thorough risk assessment to pinpoint vulnerabilities and prioritize remediation efforts.
  2. Implement Best Practices: Embrace Industrial DevOps methodologies to enhance your security posture and operational efficiency.
  3. Partner with Experts: Consider partnering with cybersecurity professionals or leveraging platforms like Copia Automation to accelerate your NIS2 compliance journey.

NIS2 is a watershed moment in the cybersecurity landscape. By taking proactive steps, your organization can not only achieve compliance but also fortify its overall resilience, ensuring your manufacturing and distribution operations thrive in an increasingly interconnected and digitally dependent world.

Learn More

PWC Risk Analysis and Assessment: What you need to know about NIS2 - PwC
Copia Automation's Industrial DevOps Platform: https://www.copia.io/
Feature NIS (Directive 2016/1148) NIS2 (Directive 2022/2557)
Scope Covers operators of essential services (OES) in energy, transport, banking, financial market infrastructures, health, drinking water supply and digital infrastructure Expands the scope to include more sectors, such as waste water, manufacturing, postal and courier services, public administration, space, etc.
Requirements Focuses on security of network and information systems, incident reporting, and cooperation between member states Introduces stricter requirements for risk management, supply chain security, vulnerability handling, encryption, and incident reporting
Incident Reporting Requires reporting of incidents having a significant impact on the provision of essential services Expands incident reporting obligations to include attempts and incidents that have not yet caused a disruption
Security Measures Requires OES to take appropriate technical and organizational measures to manage risks Introduces more specific and granular security requirements for different sectors
Supervisory Measures Enforces a national NIS competent authority to oversee implementation and compliance Strengthens supervisory measures, including stricter enforcement and penalties for non-compliance
Information Sharing Establishes cooperation mechanisms for information sharing between member states Improves information sharing mechanisms and introduces a new platform for cross-border collaboration
Cybersecurity Exercises Encourages cybersecurity exercises to test preparedness Makes cybersecurity exercises mandatory for certain entities
Implementation Deadline Member states had to transpose NIS into national law by May 2018 Member states have until October 17, 2024, to transpose NIS2 into national law
Overall Goal Establish a common level of network and information security across the EU Achieve a high common level of cybersecurity across the EU, fostering greater resilience against cyber threats