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NIS2 FAQ – The NIS2 Directive Frequently Asked Questions

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NIS2 FAQ (Frequently Asked Questions)

We understand it can be a challenge to stay on top of new cybersecurity regulations, especially when they affect the vital services your organization provides. This is why we provided you with a NIS2 FAQ  to guide you step by step, clarifying what NIS2 entails, who falls under its scope, and how to meet its requirements. We’re here to help you feel confident about safeguarding your operations while remaining compliant.

1. What are the main objectives of the NIS2 Directive?

The primary goal of the NIS2 Directive is to increase cybersecurity capabilities throughout the European Union. It encourages stronger risk management among key infrastructure providers, increases collaboration among EU member states, and enforces stricter requirements for reporting security incidents.

2. Which organizations does the NIS2 Directive affect?

NIS2 applies to both “essential” and “important” entities. These are companies or institutions that deliver vital services needed to keep society, the economy, and the internal market functioning smoothly.

3. How does NIS2 differ from its predecessor, NIS?

NIS2 has an expanded sector scope, introduces clear consequences for non-compliance, sets new security standards, and enhances cooperation across jurisdictions and the mechanisms for reporting cyber incidents.

4. What are the differences between “essential” and “important” entities?

The main difference lies in the organization’s scale and the potential social or economic impact of disruptions. A service outage at an essential entity can result in far-reaching consequences—economic instability, public safety risks, and major social disruption. Although important entities can also experience negative impacts, those impacts tend to be relatively less severe.

5. Which entities are classified as “essential,” and which as “important”?

  • Essential entities typically span energy, transport, banking, financial market infrastructure, healthcare, water and wastewater management, digital infrastructure, ICT service management (B2B), space, and the public sector.
  • Important entities include providers of postal and courier services, waste management, chemical production and distribution, manufacturing (e.g., machinery, medical equipment, electronics), food production and distribution, digital services, plus research and education.

6. If an organization does not meet the size thresholds for “essential” or “important” entities, is it still affected by NIS2?

Possibly. Even if it does not fit the “essential” or “important” size categories, an organization can still fall under NIS2 if it is a sole provider of a critical service, if disruption could significantly affect public safety or health, if it poses systemic risks, or if it is vital to a particular sector (including at the national level).

7. What are the size criteria for essential entities?

Typically, essential entities exceed the upper boundary for medium-sized enterprises: more than 250 employees, annual turnover above 50 million euros, and a balance sheet exceeding 43 million euros. Entities of special strategic value might be deemed essential regardless of size.

8. What are the size criteria for important entities?

Important entities generally have between 50 and 250 employees, with an annual turnover of up to 50 million euros and a balance sheet not exceeding 43 million euros—or they surpass these limits while still delivering services deemed “important.” Additionally, entities with 50–250 employees that do not meet certain thresholds can still be labeled as important if they operate in key sectors or meet specific critical criteria.

9. What if an organization fits both “essential” and “important” criteria?

If an organization qualifies as both, it must comply with the requirements set for essential entities.

10. Are there incident reporting obligations?

Yes. All entities subject to the directive must inform the relevant authorities about any incident threatening service continuity. Essential and important entities have a strict timeline: an initial notification within 24 hours (covering the nature of the incident and cross-border implications), an interim report within 72 hours, and a final report within 30 days detailing severity, impact, root cause, mitigation steps, and cross-border effects.

11. How can organizations gauge their readiness for NIS2?

One practical method is to use a GAP analysis questionnaire, which compares existing cybersecurity measures to the directive’s requirements, highlighting areas needing improvement.

12. How long does it typically take to comply with NIS2?

The timeline varies based on factors like current cybersecurity maturity, organizational complexity, size, and national specifics. On average, many entities can reach full compliance within about 12 months.

13. What penalties apply if an entity does not comply with NIS2?

Essential entities may face fines up to 10 million euros or 2% of their global annual turnover—whichever is higher—while important entities can be fined up to 7 million euros or 1.4% of their worldwide annual revenue, again depending on which figure is greater.

NIS2 FAQ Wrap Up

We hope this NIS2 FAQ has made the Directive a bit clearer and easier to navigate. If you’re unsure about any details or would like more personalized guidance, our team is ready to assist. Feel free to reach out for further support or answers to any additional questions.

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