The NIS 2 Directive (Directive (EU) 2022/2555) establishes cybersecurity requirements for essential and important entities operating in critical sectors across the EU. The directive mandates management accountability (Article 20), specific cybersecurity risk management measures (Article 21), and incident reporting obligations (Article 23). This guide breaks down the key requirements with practical explanations.
Article 20 establishes personal accountability for management bodies in approving and overseeing cybersecurity risk management measures.
Management bodies (boards, C-suite) must approve cybersecurity risk management measures adopted under Article 21 and oversee their implementation. Management cannot fully delegate this responsibility — they must maintain active oversight and can be held personally liable for infringements.
Members of management bodies must undergo cybersecurity training to gain sufficient knowledge to identify risks, evaluate cybersecurity practices, and oversee the implementation of measures. Similar training should be offered to all employees on a regular basis.
Article 21 mandates 10 specific categories of cybersecurity measures that all essential and important entities must implement proportionate to their risk exposure.
You must establish comprehensive policies covering risk analysis and the security of your network and information systems. These policies must be documented, approved by management, communicated to relevant personnel, and reviewed regularly.
You must establish procedures for preventing, detecting, and responding to cybersecurity incidents. This includes classification criteria, escalation procedures, containment and eradication processes, and post-incident review. The procedures must align with Article 23 reporting obligations.
You must implement business continuity management including backup management, disaster recovery, and crisis management procedures. Plans must be documented, tested regularly, and cover scenarios relevant to your critical services.
You must address security in your supply chain, including security-related aspects of relationships with direct suppliers and service providers. This means assessing supplier cybersecurity practices, including security requirements in contracts, and monitoring supplier compliance on an ongoing basis.
You must include security throughout the lifecycle of network and information systems from acquisition through development and ongoing maintenance. This includes vulnerability handling and disclosure processes for discovered vulnerabilities.
You must have policies and procedures to assess whether your cybersecurity risk management measures are effective. This includes regular testing, audits, and evaluation of whether controls are achieving their intended outcomes.
You must implement basic cyber hygiene practices (patching, password management, secure configuration) and provide cybersecurity training for all personnel. Training must be regular and cover topics relevant to each employee role and exposure.
You must establish policies and procedures for the use of cryptography and, where appropriate, encryption. This covers data at rest, data in transit, and key management practices.
You must implement human resources security measures, access control policies, and asset management procedures. This includes background checks, access provisioning based on least privilege, regular access reviews, and secure offboarding procedures.
You must use multi-factor authentication or continuous authentication solutions, secured voice, video, and text communications, and secured emergency communication systems where appropriate within the organization.
Article 23 establishes mandatory incident reporting obligations with specific timelines for early warning, notification, and final reporting to competent authorities.
You must submit an early warning to the competent authority or CSIRT within 24 hours of becoming aware of a significant incident. The early warning must indicate whether the incident is suspected to be malicious and whether it could have cross-border impact.
You must submit an incident notification within 72 hours of awareness, updating the early warning with an initial assessment of severity and impact, indicators of compromise, and mitigation measures taken. This provides authorities with actionable information about the incident scope.
You must submit a final report within one month of the incident notification containing a detailed description, root cause analysis, mitigation measures applied, and cross-border impact assessment. If the incident is ongoing, a progress report is due at one month with a final report due after resolution.
NIS 2 applies to medium and large organizations (50+ employees or 10M+ euro turnover) in 18 covered sectors including energy, transport, health, digital infrastructure, ICT services, manufacturing, and digital providers. Some smaller organizations may also be covered if designated critical by member states.
Essential Entities are large organizations in Sectors of High Criticality (Annex I) and face proactive supervision and fines up to 10M euros or 2% of turnover. Important Entities are medium organizations in Annex I or organizations in Annex II sectors and face reactive supervision and fines up to 7M euros or 1.4% of turnover. Both must implement the same Article 21 measures.
ISO 27001 provides an excellent foundation for NIS 2 compliance with significant control overlap. However, NIS 2 adds specific requirements including mandatory incident reporting timelines, management body personal liability, supply chain security obligations, and sector-specific requirements that ISO 27001 does not fully address.
Yes. Article 20 requires management bodies to approve and oversee cybersecurity measures and establishes that they can be held liable for infringements. Member states determine specific liability mechanisms in national law, but the directive clearly intends cybersecurity to be a personal board-level responsibility.
Three phases: early warning within 24 hours, incident notification within 72 hours, and final report within one month. If the incident is ongoing at one month, submit a progress report and then a final report within one month of resolution.
Key policies include cybersecurity risk management policy, incident response plan, business continuity and disaster recovery plan, supply chain security policy, access control policy, encryption policy, vulnerability management policy, cybersecurity training program, and asset management policy. PoliWriter generates these aligned with Article 21 requirements.
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