Compliance
cybersecurity
SecOps

Navigating NIS2 Compliance: What Every Business Must Know

Ashwani Paliwal
August 26, 2025

The digital world is rapidly evolving, and with it, cyber threats are becoming more advanced and disruptive. To address these risks and ensure the resilience of essential and important entities, the European Union introduced the NIS Directive (Directive on Security of Network and Information Systems) in 2016. While this was a significant step toward strengthening cybersecurity, the rising scale of attacks and increasing dependency on digital infrastructure demanded a stronger regulatory framework.

This gave rise to the NIS2 Directive, which came into effect in January 2023 and must be transposed into national law by October 2024. NIS2 builds upon the foundation of its predecessor but significantly broadens the scope, imposes stricter obligations, and introduces stronger enforcement mechanisms.

In this blog, we’ll explore what NIS2 is, who it applies to, its key requirements, and how organizations can prepare for compliance.

What is NIS2?

NIS2 is the updated European Union legislation aimed at improving cybersecurity across the EU. It establishes rules for risk management, incident reporting, and resilience of critical sectors to protect both society and the economy against cyber threats.

Unlike NIS1, which primarily focused on essential service providers like energy, transportation, and healthcare, NIS2 expands its coverage to include more industries and digital service providers, thereby increasing the number of organizations obligated to comply.

Who Does NIS2 Apply To?

NIS2 applies to “essential” and “important” entities operating in the EU.

Essential Entities

These include organizations in sectors such as:

  • Energy (electricity, oil, gas)
  • Transport (air, rail, water, road)
  • Banking & Financial Market Infrastructures
  • Healthcare (hospitals, laboratories, pharmaceuticals)
  • Digital Infrastructure (DNS, cloud computing, data centers)
  • Public Administration
  • Drinking Water & Wastewater

Important Entities

These include organizations in:

  • Postal and Courier Services
  • Waste Management
  • Manufacturing of critical products (medical devices, electronics, chemicals)
  • Food Production & Processing
  • Digital Providers (social networking platforms, online marketplaces)

This broad scope ensures that both large-scale operators and smaller yet vital businesses are covered, making the EU’s digital ecosystem more secure and resilient.

Key Requirements of NIS2 Compliance

Organizations under NIS2 must meet strict obligations in terms of risk management, reporting, and governance.

1. Cybersecurity Risk Management Measures

Organizations must adopt technical, operational, and organizational measures proportionate to the risks they face. These measures may include:

  • Incident handling processes
  • Supply chain security
  • Policies for encryption and cryptography
  • Secure access and identity management
  • Vulnerability handling and patch management
  • Business continuity and disaster recovery plans

2. Incident Reporting Obligations

NIS2 introduces a three-step reporting process:

  • Initial Notification – within 24 hours of becoming aware of an incident.
  • Intermediate Report – within 72 hours with detailed updates.
  • Final Report – within 1 month, including root cause analysis and mitigation steps.

3. Governance and Accountability

Senior management will be held directly accountable for NIS2 compliance. They must receive cybersecurity training and ensure that security policies are embedded into organizational culture. Non-compliance can result in both corporate and personal liability.

4. Supply Chain Security

NIS2 emphasizes assessing and managing cybersecurity risks in the supply chain and third-party vendors. Organizations must ensure their partners and suppliers also adhere to strong security measures.

5. Stricter Enforcement and Penalties

To ensure compliance, NIS2 introduces hefty fines, similar to GDPR enforcement:

  • For essential entities: up to €10 million or 2% of annual global turnover.
  • For important entities: up to €7 million or 1.4% of annual global turnover.

Steps to Prepare for NIS2 Compliance

Organizations must start preparing now to avoid non-compliance once NIS2 takes effect in October 2024. Some key steps include:

  1. Identify if your organization falls under NIS2’s scope.
  2. Conduct a risk assessment to understand current cybersecurity posture.
  3. Implement strong cybersecurity measures, including patch management, endpoint security, and incident response frameworks.
  4. Establish an incident reporting process aligned with the 24/72-hour requirements.
  5. Train staff and senior management on their roles and responsibilities.
  6. Strengthen supply chain security by auditing third-party providers.
  7. Document everything – policies, risk assessments, compliance measures, and reporting processes.

By proactively implementing these measures, organizations can not only avoid penalties but also strengthen resilience against the growing threat landscape.

Why NIS2 Matters More Than Ever

Cyberattacks are no longer rare incidents—they are a constant risk that can disrupt essential services, compromise personal data, and destabilize economies. With NIS2, the EU aims to establish a harmonized baseline of cybersecurity practices across its member states, ensuring a higher level of preparedness and resilience.

Organizations that comply with NIS2 are not just meeting regulatory demands—they are also building trust, reliability, and long-term competitiveness in the digital economy.

Final Thoughts: How SecOps Solution Can Help

Achieving NIS2 compliance can be complex, especially for organizations with limited cybersecurity resources. This is where SecOps Solution can make a difference.

SecOps Solution offers comprehensive cybersecurity and compliance services, including:

  • Risk assessments and gap analysis for NIS2 requirements
  • Vulnerability and patch management solutions
  • Incident response frameworks aligned with EU directives
  • Supply chain security evaluations
  • Governance and compliance training for executives and employees

By partnering with SecOps Solution, organizations can simplify their NIS2 compliance journey and ensure they are well-prepared to meet the EU’s stringent cybersecurity expectations.

SecOps Solution is an agentless patch and vulnerability management platform that helps organizations quickly remediate security risks across operating systems and third-party applications, both on-prem and remote.

Contact us to learn more.

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