12 Aug 24

What is the NIS2 Directive and how does it affect digital companies?

The NIS2 Directive marks a turning point in cybersecurity regulation in Europe, with a clear focus on protecting online operations. For companies with digital businesses, compliance with this regulation is not only a legal necessity, but an investment in protecting their future.

In an increasingly digitized world, cybersecurity has become an essential aspect to protect the critical infrastructures that sustain our society.

Against this backdrop, the European Union has introduced the NIS2 Directive, a regulation that reinforces security obligations for organizations, with a particular focus on those that rely on online operations.

For companies that manage their business in the digital environment, understanding and complying with this directive is essential to protect against cyber threats and ensure operational continuity.

The NIS2 Directive

The NIS2 Directive (Network and Information Security) is a European regulation designed to strengthen cybersecurity and resilience in critical and strategic sectors.

This regulation emerges as an evolution of the original NIS Directive, approved in 2016, with the aim of addressing the growing cyber threats faced by infrastructures essential to the economy and society.

NIS2 expands the scope of the original text, including more sectors and companies under its regulatory umbrella, and establishes more rigorous standards for information protection and risk management.

Who does the NIS2 directive apply to in the digital environment?

The NIS2 Directive affects a broad spectrum of critical and important sectors, and is particularly relevant for businesses that operate online or rely on digital services. This includes:

  • Cloud service providers: Platforms that offer cloud computing and storage services are critical to the operation of many businesses, and any failure in their security can have devastating consequences for multiple sectors.
  • E-commerce platforms: Online marketplaces that facilitate the sale of goods and services are required to adopt stricter cybersecurity measures to protect transactions and user information.
  • Search engines: As essential tools for accessing information, search engines are also subject to the security requirements of the NIS2 Directive, ensuring the integrity and availability of their services.
  • Content delivery network and managed security service providers: The NIS2 Directive requires content delivery network (CDN) companies and digital asset protection services to take effective cybersecurity measures to ensure that the content and services they provide are not compromised by cyberattacks.
  • ICT (Information and Communications Technology) Companies: Providers of software, internet services and other digital solutions must comply with security standards, given their role in the global digital infrastructure.

Impact of the NIS2 Directive on digital economy companies

For businesses operating online, compliance with the NIS2 Directive is not only a legal obligation, but a strategic necessity to protect against cyber threats that could compromise the integrity of their business. Here are the key areas of impact:

  • Cyber ​​risk management: The NIS2 Directive requires companies to conduct regular risk assessments to identify and mitigate vulnerabilities in their systems. This is particularly crucial for online businesses, where reliance on technology is total. 
  • Business continuity: The directive also places an emphasis on contingency planning and disaster recovery. For digital businesses, the ability to quickly recover from a cyber incident is vital to maintaining customer trust and avoiding prolonged service interruptions.
  • Protecting Customer Data: The security of customers’ personal and financial information is a priority. Businesses should ensure their platforms are equipped with measures such as encryption and multi-factor authentication to protect this sensitive data.
  • Supply Chain Security: Companies should assess the security of their suppliers and technology partners. Since a large percentage of attacks originate through third parties, this assessment is crucial to prevent vulnerabilities in the digital supply chain.
  • Incident Notification: In the event of a significant incident, companies must notify the relevant authorities within 24 hours. This requires the implementation of protocols and systems that can detect, report and manage incidents quickly and effectively.

The role of Transparent Edge in compliance with the NIS2 Directive

To facilitate compliance with the NIS2 Directive, Transparent Edge offers its edge cybersecurity platform, Perimetrical. This solution not only provides advanced cybersecurity functionalities to protect web and API environments, but also allows for efficient management of logs and data analytics. An important aspect to meet NIS2 requirements, especially with regard to incident reporting and the generation of detailed reports that authorities may require.

Perimetrical helps companies implement security measures across their entire digital infrastructure, ensuring that threats are detected and neutralized before they can cause significant damage. Additionally, the platform facilitates continuous monitoring, ensuring that companies can demonstrate their compliance in the event of any external inspections or audits.

Responsibility of management in compliance with NIS2

It is important to highlight that, according to European legislators, the managers of each company are responsible for guaranteeing cybersecurity and preventing IT security incidents, being personally liable for any breach. This underlines the importance of having adequate tools and strategies that ensure compliance with regulations and protect both the company and its leaders.

Challenges & opportunities

Compliance with the NIS2 Directive represents a significant challenge. However, it offers an opportunity to strengthen digital resilience, improve customer trust and differentiate in an increasingly competitive market.

Companies that take a proactive and strategic approach to cybersecurity will not only be compliant, but will be better positioned to deal with current and emerging threats. This involves investing in security technology, training employees and working closely with suppliers to ensure that the entire supply chain meets security standards.

Adopting an effective cybersecurity culture aligned with the requirements of the NIS2 Directive will enable these companies to comply with the regulation while strengthening their position in an increasingly complex and challenging digital environment.

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