The Growing Threat of Cyberattacks
In 2023, over 6 billion cyberattacks were reported globally1, targeting critical sectors like energy, banking, transportation, and healthcare. Major companies were significantly impacted, highlighting the growing sophistication and volume of cyber threats.
The Network and Information Security Directive 2 (NIS2) is an EU regulation designed to strengthen cybersecurity resilience across essential and important sectors. It mandates stricter security controls, rapid incident response, and regulatory oversight to mitigate cyber threats.
NIS2 introduces stringent checklist requirements for organisations in essential sectors, aiming to help them implement strong transparency, response, and recovery plans. Due to these new requirements, many businesses are asking basic questions like:
• When does NIS2 come into effect?
• Does NIS2 apply to my company?
• What does NIS2 stand for?
• What changed since the original NIS 2016?
Sharp IT Services can help answer these questions and minimise the disruption and damage from non-compliance.
Key Facts About NIS2 Directive
Application and Requirements
NIS2 came into effect on 17 October 2024, and applies to medium and large organisations in two categories:
- Essential Entities (Higher Risk) critical entity
- Important Entities
Both categories must meet basic security requirements. However, essential entities face stricter audits and more active supervision by EU authorities. This ensures a higher level of cybersecurity protection.
Businesses that support critical infrastructure or supply chain operations for these sectors must also comply. Additionally, NIS2 affects non-EU companies providing services within the EU, requiring them to appoint an EU representative. This directive sets a global cybersecurity standard, influencing international businesses operating in Europe.
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Compliance and Penalties
Failure to comply with NIS2 can result in fines up to €10M or 2% of global turnover for essential entities and €7M or 1.4% of turnover for important entities.
Non-compliance may also lead to mandatory audits, legal action, reputational damage, and contract terminations from regulated clients. Senior management might also face personal liability and restrictions on holding managerial positions for non-compliance.
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Incident Handling & Reporting Obligations
Companies must report significant cyber incidents within 24 hours to national regulatory bodies and provide full assessments within 72 hours.
- Organisations must implement incident response plans, continuous monitoring, and real-time threat detection to meet compliance.
- Incidents affecting supply chain partners must be communicated to ensure coordinated incident response and risk management across impacted entities.
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NIS2 Core Objectives
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The Network and Information Security Directive (NIS2) addresses critical gaps in the European Union's cybersecurity requirements landscape. A recent report from the European Union Agency for Cybersecurity (ENISA)2 shows significant disparities in cybersecurity skills among EU member states. This leads to uneven protection levels across the region.
2020 Eurobarometer survey 3 indicates that only 52% of respondents feel well-informed about cybercrime, underscoring a widespread lack of awareness. These findings underscore the importance of NIS2's core objectives.
Ensuring organisations implement robust security measures to protect critical systems.
Mandating quick reporting and structured responses to cyber incidents.
Reducing inconsistencies in cybersecurity policies across all EU member states.
Addressing vulnerabilities in third-party providers to prevent security breaches.
Enforcing regular audits and compliance reporting to meet security standards.
Challenges for Organisations Under NIS2
Meeting NIS2 compliance presents significant challenges for organisations, from understanding regulatory obligations to implementing strict cybersecurity measures.
Businesses must establish robust risk management policies, incident reporting frameworks, and supply chain security controls to meet compliance. With increasing regulatory scrutiny, companies face fines, reputational damage, and operational disruptions if they fail to align with NIS2 standards. Ensuring ongoing compliance requires continuous monitoring, staff training, and proactive security measures to mitigate cyber risks effectively.
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The Impact of NIS2 on Supply Chain
Even if a company does not fall directly under NIS2, it may still be affected if its clients, partners, or suppliers are regulated entities.
Organisations in logistics, IT services, manufacturing, and third-party vendors must meet cybersecurity requirements to maintain business relationships. Non-compliant suppliers risk losing contracts as regulated entities prioritise secure partnerships to avoid penalties and supply chain vulnerabilities. Strengthening security practices not only ensures business continuity but also enhances trust and market competitiveness in an increasingly regulated landscape.
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How Sharp IT Services Will Support Your NIS2 Compliance Journey
NIS2 Scope Identification
We assess whether your business qualifies as an essential or important entity, clarifying regulatory obligations and compliance scope.
Gap Assessment & Strategy
Our experts evaluate your current cybersecurity framework, identifying gaps against NIS2 standards using industry-recognised methodologies.
Customised Compliance Roadmap
We develop tailored action plans, prioritising critical security measures to align your business with NIS2.
Implementation & Security Measures
Sharp IT Services deploys key security controls, including business continuity planning, access control, identity management, encryption, and incident response.
Ongoing Compliance & Monitoring
With continuous monitoring, penetration testing, staff training, and regular audits, we ensure long-term compliance and protection.
Why Choose Sharp IT Services for NIS2 Compliance?
We help with risk assessments, security policy implementation, incident response planning, and ongoing compliance checks. This ensures businesses meet NIS2 requirements.
Sharp IT Services encourages good cybersecurity practices in all business areas. We do this through clear policies, ongoing employee training, and awareness programs.
Our real-time monitoring, automated threat detection, and proactive security solutions protect businesses from cyber threats and help maintain regulatory compliance.
We have extensive experience in regulated industries. We offer security solutions that meet specific compliance needs and make operations more efficient.
Our NIS2 compliance services ensure your IT security so you can take care of business.
Stay ahead of the NIS2 directive with our expert guidance. Download the Sharp NIS2 Compliance Services Product Sheet now.