NIS2 applies to any company operating in the EU, including “all public and private entities across the internal market, which fulfill important functions for the economy and society as a whole,” which “are required to take adequate cybersecurity measures.”
The Directive splits “covered entities” into two types: essential entities (EE) and important entities (IE). The difference between the two classes regarding compliance is that essential entities are subject to more stringent regulatory requirements for monitoring compliance, incident reporting obligations, and enforcement measures across information systems. Examples of each type of entity include:
Entities operating in the following sectors may be deemed essential (EE);
- Transport
- Energy
- Banking
- Health
- Water
Entities operating in the following sectors may be deemed important (IE);
- Postal and courier services
- Waste management
- Chemical production and processing
- Food
- Digital providers (search engines, social networking platforms, etc.)
Examples of three sectors affected by NIS2 are:
Health — Healthcare is an essential service under NIS2; therefore, a healthcare entity must adhere to stringent NIS2 regulatory requirements, including risk management measures that mitigate cyber risks and prevent damage to IT systems and data. In addition, incident management, supply chain cybersecurity, network security, access control, and data encryption are core requirements. Essential services such as healthcare organizations can use Zero Trust solutions to help adhere to these stringent security requirements. Zero Trust helps reduce compliance time by using fewer resources to achieve robust security across expanded networks and supply chains.
Retailers — The 2022 Sophos report The State of Ransomware in Retail identifies an upward trend of threats targeting the retail sector; the report found that 77% of retailers were victims of a ransomware attack in 2021. The NIS2 explicitly identifies “food production, processing and distribution” and “providers of online marketplaces”" as “important services.” As such, many retail operations will be in scope for NIS2 compliance. By enabling Zero Trust security, a retail company draws upon a comprehensive coverage of its IT environment; deep visibility into assets, access, and network flows; and granular enforcement of security policy. Using this comprehensive approach, a retailer can cover many requirements to ensure compliance with NIS2.
Third-party suppliers and service providers — Gartner predicts 45% of organizations worldwide will experience attacks on their software supply chains by 2025. The supply chain is a perfect target for hackers attempting to infiltrate the chain into an enterprise. NIS2 handles this cybersecurity risk with stringent risk management requirements for the supply chain for key information and communication technologies. NIS2 requires a proactive approach to supply chain risk management, including evaluation of the quality of the cybersecurity practices of its suppliers. Third-party suppliers should use a Zero Trust model of security to ensure that they have comprehensive security measures in place that ensure least-privilege access, for example, is enforced.