NIS vs NIS2: What’s New and Why It Matters

Introduction:

Understanding the differences between the original Network and Information Security (NIS) Directive and its updated version, NIS2, is crucial for organizations operating in Europe. While both aim to improve cybersecurity, NIS2 introduces several important updates that reflect the evolving nature of cyber threats. This article will break down these differences in clear terms to help you understand what has changed and why these changes matter for businesses and governments alike.

Key Differences Between NIS and NIS2:

1. Broader Scope of Application:

   - NIS1: Covered sectors such as energy, transport, water supply, and healthcare, but left gaps in coverage.

   - NIS2: Expands its scope to include additional sectors like waste management, space operations, and digital infrastructure (e.g., cloud service providers, data centers). It also introduces a new classification of organizations called “Important Entities,” which covers sectors that, while not traditionally seen as critical, are essential in today’s interconnected world.

Example: Under NIS1, an electricity provider might have been required to follow strict cybersecurity rules, but under NIS2, a cloud service provider hosting critical systems is now also subject to these rules.

For a detailed list of sectors covered, see the NIS2 Directive Annex (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32022L2555#d1e3612-1-1).

2. Stricter Incident Reporting:

   - NIS1: Allowed flexibility in how incidents were reported, often leading to delays and inconsistent responses across Member States.

   - NIS2: Tightens these rules significantly, requiring organizations to report cybersecurity incidents within 24 hours of detection for initial notification, with a full report required within 72 hours. This ensures a faster response, limiting the damage and allowing quicker recovery.

This change is crucial in the face of modern cyberattacks, which can spread quickly and cause significant damage in a short period. For example, the 2021 ransomware attack on Colonial Pipeline in the US led to fuel shortages in several states within days, showing how quickly incidents can escalate.

3. Governance and Accountability:

   - NIS1: Lacked specific provisions for holding management accountable.

   - NIS2: Introduces clearer governance structures, requiring senior management to be directly responsible for implementing cybersecurity measures. This means that executives and board members can be held accountable for failures in cybersecurity, potentially facing fines or other penalties.

According to the directive, this change is intended to encourage a stronger cybersecurity culture at the top levels of organizations. It emphasizes that cybersecurity is no longer just an IT issue but a boardroom responsibility.

 Learn more about these new governance requirements from the European Parliament’s official briefing (https://www.europarl.europa.eu/RegData/etudes/BRIE/2022/733729/EPRS_BRI(2022)733729_EN.pdf).

4. EU-wide Harmonization:

   - NIS1: Allowed for differences in how each Member State implemented the directive, which led to inconsistencies in cybersecurity practices across the EU.

   - NIS2: Aims for greater harmonization, meaning all Member States will follow more standardized cybersecurity practices. This will help create a more unified and secure digital market across Europe, ensuring that cyber risks are managed consistently.

This harmonization is critical for businesses operating in multiple countries, as it reduces the complexity of complying with different national regulations.

Conclusion:

NIS2 introduces significant changes that reflect the growing importance of cybersecurity in protecting essential services. Whether you’re a business owner, a government official, or just interested in cybersecurity, it’s essential to understand these updates. For more details, you can read the full NIS2 Directive (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32022L2555).