NIS 2: Implementing Stricter Cybersecurity Governance

The EU's new NIS 2 Directive raises the bar for cybersecurity, especially for critical infrastructure sectors. But it's not just about technology upgrades – it emphasizes strong leadership involvement in building a cyber-resilient organization.

What does this mean for your business?

1- Shifting Focus to Risk Management

1. NIS 2 requires a risk-based approach to cybersecurity. This means businesses (classified as "Essential" or "Important" under the directive) need a clear plan to identify, assess, and address cyber threats.

2- Stronger Governance: Your Leadership in the Driver's Seat

1. Here's how NIS 2 changes the game for leadership:

• Management Buy-In: Cybersecurity can't be just an IT concern anymore. Management bodies must approve and oversee cybersecurity risk-management measures.
• Leadership Training: While CEOs don't need to be cybersecurity experts, they need a basic understanding. NIS 2 requires management training to grasp cyber risks and their impact on the business.
• Employee Awareness: A strong cybersecurity posture requires everyone's participation. NIS 2 encourages organizations to provide regular cybersecurity training to employees. 

3- Holding Top Management Accountable

Traditionally, the burden of cybersecurity fell solely on IT. NIS 2 changes this. To emphasize shared responsibility and reduce pressure on IT, the directive introduces measures that hold top management personally liable for cybersecurity shortcomings in major security incidents if there's evidence of gross negligence.
EU member states can now hold managers accountable and require organizations to take the following actions:

• Public Disclosure of Violations: Organizations may be required to announce their non-compliance with NIS 2 publicly.
• Public Shaming: Public statements can identify individuals (natural persons and legal representatives) responsible for the violation.

For critical infrastructure providers ("Essential” entities), even harsher penalties exist. In cases of repeated violations due to gross negligence, authorities can temporarily ban individuals from holding management positions.

The Benefits of Strong Governance

These requirements aren't just about punishment; they aim to achieve two key goals:

• Increased Accountability for Executives: By putting top management on the hook, NIS 2 encourages a more proactive approach to cybersecurity risk management.
• Prevention of Gross Negligence: The threat of personal consequences discourages neglecting cybersecurity efforts.

In essence, NIS 2 changes the cybersecurity responsibility archetype. It's no longer just an IT concern but a boardroom issue with potential consequences for leadership.

Turning Requirements into Advantages

These governance requirements are a wake-up call, but they can also benefit your business:

• Clear Ownership: Leadership responsibility fosters a culture of cybersecurity accountability, ensuring everyone is invested in protecting their systems.
• Improved Decision-Making: With a deeper understanding of cyber risks, management can make informed decisions about resource allocation and security investments.
• Proactive Approach: The focus on risk management encourages a proactive approach to cybersecurity rather than just reacting to incidents.

Taking Action

Meeting NIS 2 governance requirements takes commitment. Here are some steps you can take:

• Review Your Leadership Structure: Ensure clear ownership of cybersecurity within your management team.
• Develop a Training Program: Invest in training for leadership and employees to raise awareness and understanding of cyber threats.
• Integrate Cybersecurity into Risk Management: Consider cyber and other business risks together to create a holistic approach.

NIS 2 may seem challenging, but its focus on governance is a positive step. By empowering leadership and fostering a culture of cybersecurity awareness, businesses can strengthen their defense against ever-evolving cyber threats.

This is the second of a four-part blog series on NIS 2. Click here for the first part, which introduces NIS 2.