The NIS 2 Directive, officially known as (Directive (EU) 2022/2555) the “Directive on measures for a high common level of cybersecurity across the Union,” is an updated regulation that aims to strengthen cybersecurity by improving the resilience and incident response capacities of public and private sectors across the European Union. But what is important in NIS 2 Compliance?
As it extends the scope of the original NIS Directive, many small to medium-sized enterprises (SMEs) and other organizations now face new and complex requirements.
Meeting these requirements presents several challenges for companies with a higher cybersecurity maturity. Especially for the mid-sized and small businesses that are now in scope, but Managed Security Service Providers (MSSPs), (who) leverage a unique platform such as FortifyData, play a crucial role in helping organizations improve their cybersecurity posture and achieve compliance with NIS 2 to avoid penalties and fines.
Key Challenges of NIS 2 for Companies
1. Compliance Complexity: The NIS 2 Directive expands its scope to include more sectors and organizations. It brings a more diverse range of entities under its jurisdiction. Understanding and implementing the detailed requirements of the directive can be a daunting task. Particularly for SMEs with limited resources and lack of processes or security maturity to continuously demonstrate compliance.
2. Resource Constraints: Many organizations, especially smaller ones, may struggle with the financial and human resource demands required to meet the new cybersecurity standards such as continuous monitoring, 24-hour breach notification to regulator, incident response reporting and other processes to prevent, detect, respond and recover from cyber incidents. The global shortage of skilled cybersecurity professionals further exacerbates this issue for completing cyber threat assessments and day-to-day operations.
3. Supply Chain and Vendor Management: Ensuring the security of supply chains and third-party vendors is a significant challenge. Organizations need to conduct thorough due diligence and continuous monitoring of their vendors to ensure compliance with NIS 2 requirements, which can be resource intensive. Vendors can answer questionnaires but to improve the trust in their answer automatically verify their answer with the technical validation capability of FortifyData.
4. Incident Reporting and Response: NIS 2 mandates timely and efficient incident reporting and response mechanisms. Also, it needs early warning notification in 24 hours and incident reporting by 72 hours per NIS 2 (102). Organizations without established protocols may find it challenging to comply with these stringent reporting requirements.
5. Harmonization Across Borders: Although NIS 2 aims for harmonization, the directive will be implemented through national laws. Which may differ slightly from one EU member state to another. Companies operating in multiple countries must navigate these differences, adding another layer of complexity.
Strengths and Opportunities
Despite these challenges, organizations with mature cybersecurity programs or those already compliant with other regulations, such as GDPR, may find it easier to adapt to NIS 2 requirements. Furthermore, the directive’s emphasis on top management responsibility is likely to increase awareness and prioritization of cybersecurity at the highest levels of organizations.
Struggles for Small to Mid-Sized Companies Now in Scope of NIS 2
As the directive expands its scope to additional critical sectors, many companies may not be used to the rigor of continuously meeting these requirements to be compliant and avoid penalties and fines. At any given moment a company may need to provide reporting to a regulator. This is seamlessly achieved with the reporting capabilities built in FortifyData. Some of the areas that companies in scope for new compliance requirements struggle with are:
Supply Chain and Vendor Management:
- Comprehensive Oversight: Ensuring comprehensive oversight and security compliance of all third-party vendors can be particularly challenging. This happens due to the diversity and number of vendors involved.
- Vendor Resistance: Some vendors might resist increased scrutiny and contractual obligations, making it difficult for companies to enforce compliance. This is particularly challenging when there isn’t an alternative vendor to transition to.
Incident Reporting and Coordination
- Real-Time Reporting: Implementing real-time or near-real-time incident reporting mechanisms can be technically challenging. Also, may require significant investment in monitoring and detection tools. The NIS 2 directive has a requirement for early warning notification in 24 hours and incident reporting by 72 hours per NIS 2 (102).
- Interdepartmental Coordination: Ensuring effective coordination between IT, legal, and other departments during an incident can be complex. It requires robust internal communication protocols.
Resource Allocation
- Budget Constraints: Allocating sufficient budget for cybersecurity improvements, including technology investments and staff training, may be difficult for smaller organizations.
- Competing Priorities: Balancing cybersecurity investments with other business priorities can be a challenge, especially for resource-constrained companies.
The Strategic Role of MSSPs Leveraging FortifyData to Help Companies Meet NIS 2
Managed Security Service Providers (MSSPs) are well-equipped to assist organizations in overcoming the challenges posed by NIS 2 by leveraging FortifyData, as a unified cybersecurity risk management platform to help with continuous monitoring, third-party risk management and the MSSP services for remediation, audit/advisory and other services to help companies in their NIS 2 initiative. Here are some key areas where MSSPs can provide invaluable support:
Enhanced Cybersecurity Resilience
MSSPs can offer clients continuous monitoring of external vulnerabilities, providing organizations with real-time continuous insights into their security posture through the FortifyData platform. Its integration with other security technologies allows for comprehensive internal network assessments, ensuring a robust risk management approach.
Expert Guidance and Compliance Frameworks
MSSPs can offer expert guidance on understanding and interpreting the detailed requirements of NIS 2. They can help organizations develop comprehensive compliance strategies and implement necessary frameworks to meet the directive’s standards. Leveraging the NIS 2 control assessment in FortifyData – and support for multiple compliance frameworks – the MSSP can help organizations evaluate their adherence to NIS 2 requirements, identify gaps, and implement necessary controls.
Resource Augmentation
By outsourcing various security functions to MSSPs, organizations can leverage the MSSPs’ expertise and resources without the need for extensive in-house capabilities. This is primarily effective for Risk Management and Prioritization. MSSPs using FortifyData’s platform for automated risk prioritization and remediation recommendations enable them to efficiently identify, communicate with the client, manage and mitigate critical threats. This aligns with NIS 2’s emphasis on risk-based approaches and proactive risk management. MSSPs provide access to skilled cybersecurity professionals, helping companies manage resource constraints effectively.
Supply Chain Security
MSSPs using FortifyData as a foundation for TPRM continuous monitoring and management of third-party vendors addresses NIS 2’s supply chain security requirements.
Organizations can use FortifyData’s tools for continuous external assessments of vendors’ security practices, ensuring ongoing due diligence. FortifyData combines external vendor assessments with questionnaires featuring auto-validation to streamline vendor security evaluation processes.
The MSSP can offer vendor management services, contacting vendors on behalf of the end-customer to prompt issue remediation. By reminding vendors of contractual SLAs, the MSSP reduces risk, ensuring compliance and identifying supply chain security issues.
Incident Detection and Response
MSSPs offer advanced incident detection and response services, improving security monitoring and threat management for organizations. FortifyData’s platform enhances MSSP incident detection and response by integrating with other security technologies for better protection.
It automates the incident reporting process, ensuring, ensuring timely identification and reporting of security incidents.
They assist in setting up incident reporting mechanisms that align with NIS 2 requirements, ensuring timely compliance with the directive. By managing incident reporting systems, they help organizations meet the strict timelines mandated by the NIS 2 directive.
Harmonization Across Borders
For organizations operating in multiple EU member states, MSSPs can help harmonize compliance efforts across different jurisdictions, ensuring that all local regulations are met seamlessly.
Governance and Accountability
The MSSP will be able to communicate simply and efficiently by employing the platform’s centralized dashboard and reporting options to provide top management with visibility into the organization’s security posture and compliance status, supporting governance and accountability. Comprehensive reporting features facilitate effective oversight and decision-making.
The NIS 2 Directive presents significant challenges for organizations, particularly in terms of compliance complexity, resource constraints, supply chain management, and incident reporting. However, MSSPs, leveraging advanced platforms like FortifyData, can provide crucial support to help organizations navigate these challenges and achieve compliance.
By offering expert guidance, resource augmentation, continuous monitoring, and comprehensive risk management solutions, MSSPs and FortifyData can ensure that organizations not only meet the NIS 2 requirements but also enhance their overall cybersecurity resilience.
