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NIS2 Directive Overview

Origin and Background

The NIS2 Directive (Network and Information Security Directive 2) was created by the European Union and adopted in January 2023, replacing the original NIS Directive from 2016. The European Parliament and Council developed this legislation to address the growing cybersecurity threats across member states and to create a more uniform approach to cybersecurity requirements. It was implemented because the original directive had inconsistent application across EU countries and didn't adequately cover the expanding digital landscape and supply chain vulnerabilities that emerged in recent years.

Industry Importance and Value

NIS2 is significant because it establishes mandatory cybersecurity requirements for approximately 160,000 organizations across essential and important sectors in the EU, including energy, healthcare, banking, digital infrastructure, and public administration. The directive is valued for creating harmonized cybersecurity standards across Europe, improving incident reporting mechanisms, and holding senior management directly accountable for compliance. For organizations doing business in or with the EU, NIS2 compliance has become essential—not only to avoid substantial penalties (up to €10 million or 2% of global turnover) but also to demonstrate robust cybersecurity practices to partners and customers in an increasingly interconnected global market.