What is the NIS 2 Directive?

Companies are beginning to scramble to meet the demands of the NIS2 Directive, which came into force on October 17, 2024. When the overwhelming spreadsheets and complexity of the compliance requirements become too much, organizations often turn to MSPs and MSSPs for a helping hand. Then, MSPs/MSSPs are pulled into the world of policies, assessments, and mapping controls—a space that demands expertise but eats away at your resources.

For managed security providers, the challenge is clear: how do you deliver the compliance guidance your clients need without exhausting your team or sacrificing efficiency? With cybercrime set to reach $10.5 trillion in 2025, the time to act towards NIS 2 compliance is now.

The NIS 2 Directive in a nutshell: What does it mean for your clients?

The NIS 2 Directive (Network and Information Security Directive 2) is the European Union’s latest framework aiming to uniformly bolster cybersecurity across EU member states. Building on its predecessor, NIS1, this updated directive expands its reach to include more sectors and businesses. The expanded regulation reflects the growing interdependence of digital and physical infrastructure across sectors and economies.

Its purpose isn’t to burden businesses but to create a collective baseline for managing cybersecurity risks to develop a stronger, more resilient digital ecosystem across Europe. Clients will likely evaluate MSPs/MSSPs on their ability to guide them in implementing technical and organizational controls, such as vulnerability assessments and supply chain security, to defend against evolving threats.

However, it’s not just about tools and processes; NIS 2 demands accountability at the leadership level by mandating that those in management positions actively oversee and understand their company’s cyber risks.

What are the penalties for non-compliance with the NIS 2 Directive?

The NIS 2 Directive establishes a two-tier financial penalty system, distinguishing between “essential” and “important” entities. For essential entities, the Directive sets a maximum fine of at least €10 million or 2% of the organization’s total worldwide annual turnover, whichever is higher. For important entities, the maximum fine is at least €7 million or 1.4% of the total worldwide annual turnover, whichever is higher.

The shift to management accountability compels your clients’ board members and other senior management staff to understand the strategic implications of cybersecurity. The EU wants to instigate a cultural change where cybersecurity becomes a boardroom issue that fosters better decision-making and resource allocation.

In practical terms, the EU imposes punitive measures for individual board members who fall short of their responsibilities; potential sanctions include public statements naming responsible individuals and revoking the right to hold management positions where there are repeated violations of the Directive.

It’s also worth noting that while the Directive provides baseline figures for company fines, the supervisory authorities in individual EU Member States have the authority to set higher penalties within their national legislation. In addition, the Directive empowers national authorities to impose non-financial penalties, such as orders to comply, mandatory instructions, and security audits.

Transforming Compliance Assessments into a Competitive Advantage

NIS 2 is officially in force, and the stakes for non-compliance are high. More companies will continue to turn to MSPs and MSSPs for guidance in navigating its complex requirements. Tools and platforms that automate the manual work can potentially transform compliance assessments aligning with frameworks like NIS 2 from a time-consuming challenge into a value-added service that you provide with efficiency.

The manual effort required—auditing frameworks, creating tailored policies, and identifying gaps—can strain your team and divert focus from other high-value services you offer. With Cynomi, you can streamline these assessments and deliver exceptional NIS 2 compliance support to clients while freeing up resources to continuously grow your business. Moreover, showing the gaps to compliance through a third party like Cynomi, helps you explain the need of other cybersecurity services and solutions to your clients, making upsell more easy.

Cynomi simplifies your compliance offerings through a vCISO platform that automatically matches each client’s cyber profile with standards, frameworks, and regulations like NIS 2. Automated scans can uncover critical vulnerabilities in externally visible IPs and URLs, including ports, protocols, encryption, websites, etc., to help determine clients’ areas of non-compliance with NIS 2’s technical controls.

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