Understanding the NIS 2 Directive and Its Impact on UK Companies

In today's digital age, cybersecurity has become a critical concern for businesses worldwide. The European Union's NIS 2 Directive is a significant step towards enhancing cybersecurity across various sectors. All EU member states are required to transpose it into national lay by 18th October 2024. Although the UK is no longer part of the EU, the NIS 2 Directive still holds considerable relevance for UK companies, especially those operating within the EU or providing services to EU customers.

What is the NIS 2 Directive?

The NIS 2 Directive formally known as Directive (EU) 2022/2555 is an EU-wide legislation aimed at enhancing cybersecurity across various sectors across the EU. It builds upon the original NIS Directive, expanding its scope to include more sectors and introducing stricter security requirements.

The NIS 2 Directive applies to a wide range of sectors, considered critical for the EU’s economy and society:

• Energy – including electricity, oil, gas, district heating, and hydrogen.
• Transport – covering air, rail, water, and road transport.
• Banking and Financial market infrastructures.
• Health – including healthcare providers, laboratories, and research on pharmaceuticals and medical devices.
• Drinking water and Wastewater management.
• Digital Infrastructure – such as data centers, cloud service providers, and content delivery networks.
• ICT Service Management – Business-to-business services.
• Public Administration – both central and regional levels.
• Space – Including satellite operations.
• Postal and Courier Services.
• Waste management.
• Manufacturing – specifically critical products like medical devices, computer and transport equipment.
• Production, processing, and distribution of Food.
• Manufacture, production, and distribution of chemicals.
• Digital providers – including online marketplaces, search engines, and social networks.
• Research – various research institutions and activities.

The NIS 2 Directive not only applies to the primary operators in these critical sectors, but also extends its reach to their supply chains, recognizing that vulnerabilities within suppliers can compromise the security of the entire network.

Risk to Suppliers

If a supplier does not comply with NIS 2 requirements, they could face significant risks, including:

• Financial penalties – non-compliance with NIS 2 can lead to fines and other legal consequences, particularly if a security breach occurs as a result of inadequate measures.
• Loss of Business – companies in critical sectors are likely to seek suppliers that are compliant with NIS2 to mitigate their own risks. Non-compliant suppliers may find themselves losing contracts or being excluded from tendering processes.
• Reputational Damage – a security breach affecting a major sector, where a supplier is found to be the weak link, can lead to severe reputational harm and loss of trust from existing and potential clients.

Why Should UK Companies Care?

Even though the UK has left the EU, UK companies that operate within the EU or have business relationships with EU entities (provide goods or services to European companies or use EU established suppliers) must comply with the NIS 2 requirements to maintain their business operations and security standards.

Non-compliance could result in significant penalties and disrupt business operations.

Key Measures and Requirements

To align with the NIS 2 Directive, UK companies should focus on the following key measures:

1. Risk Management:
   • Conduct regular risk assessments to identify potential threats and vulnerabilities.
   • Implement appropriate technical and organizational measures to mitigate identified risks.
2. Incident Response:
   • Develop and maintain robust incident response plans.
   • Ensure timely reporting of significant incidents to relevant authorities.
3. Supply Chain Security:
   • Assess and manage risks associated with third-party suppliers.
   • Ensure that suppliers adhere to similar cybersecurity standards.
4. Security Policies and Procedures:
   • Establish comprehensive security policies and procedures.
   • Regularly review and update these policies to reflect the latest threats and best practices.
5. Employee Training and Awareness:
   • Conduct regular cybersecurity training for employees.
   • Promote a culture of security awareness within the organization.

UK Companies, NIS 2 and Go Live UK Ltd.

For the companies in the UK that are not directly subject to the NIS2 Directive, there are several alternative frameworks and standards that can help enhance cybersecurity and ensure a robust security posture. These alternatives are designed to be more accessible and tailored to the needs of smaller businesses while still providing effective protection against cyber threats.

• Cyber Essentials and Cyber Essentials Plus – Cyber Essentials a UK government-backed certification scheme designed to help businesses of all sizes protect themselves from common cyber threats. It focuses on five key controls: firewalls, secure configuration, user access control, malware protection, and patch management. Cyber Essentials is an entry-level certification that demonstrates a basic level of cybersecurity. As a Certification Body, Go Live UK Ltd. can guide you throughout the whole Cyber Essentials Certification process and provide you with professional consultancy for your company as well as answer any questions you might have during the certification process.
  Cyber Essentials Plus is a more advanced version that includes an independent assessment and vulnerability testing to ensure that the measures implemented are effective.
• Cybersecurity Insurance - many companies also consider cybersecurity insurance as part of their risk management strategy. While not a framework or standard, cybersecurity insurance provides financial protection against losses from cyber incidents and can include access to expert incident response service. As part of Cyber Essentials Certification, free Cyber Liability Insurance can help you manage the financial impact of cyber incidents. Call us on 0203 8652 964, or send an email to [email protected] and we can check if you are eligible to receive the free Cyber Liability Insurance.
• IASME Cyber Assurance Standard - tailored for SMEs and includes Cyber Essentials as part of its certification. It also covers additional aspects such as physical security, risk management, and data protection, making it a more comprehensive alternative to Cyber Essentials alone. IASME Cyber Assurance Standard aligns with the requirements of GDPR and is often seen as a cost-effective away for the companies to implement good cybersecurity practices.
  Go Live UK Ltd. is a Certification Body according to the IASME Cyber Assurance Standard requirements. We can guide you throughout the whole IASME Cyber Assurance certification process.
• UK GDPR Compliance - While UK GDPR legislation is primarily focused on data protection and privacy, compliance with UK GDPR requires robust cybersecurity measures to protect personal data. This can be an important consideration for SMEs, especially those handling customer data.
  As an expert with many years of experience in this field, Go Live UK is providing effective products and services to keep client’s data secure and keep your online presence constantly protected. Our original methodology will handhold you through the process of UK GDPR and address all aspects for your compliance including Governance, ICT services, websites, HR and training. Do not hesitate! Call us on 0203 8652 964 and we will help you!
• ISO/IES 27001 - this is an internationally recognized standard for information security management systems (ISMS). It is suitable for businesses of all sizes, and provides a comprehensive framework for managing and protecting sensitive company and customer information. It covers aspects such as risk management, incident response, and compliance with legal and regulatory requirements.
  Go Live UK Ltd. works together with subject matter experts in the field of ISO certifications. Our BAMS (Business Assurance Management System) cloud software tool is uniquely designed to manage governance, auditing and quality management processes in addition to risk and quality assessments. BAMS offers offsite or onsite 1^st, 2^nd and 3^rd party online certification, housed within a framework superior to typical associated ISO standards.
• NCSC Guidance - The National Cyber Security Centre (NCSC) in the UK offers extensive guidance and resources for SMEs. This includes the “10 Steps to Cyber Security” framework, which provides practical advice on implementing effective cybersecurity measures tailored to smaller organizations. They are specifically designed to be easy to follow and implement for SMEs.

Conclusion

The NIS 2 Directive represents a significant advancement in the EU's approach to cybersecurity. For UK companies, understanding and complying with these requirements is crucial to maintaining business operations and protecting sensitive data. By taking proactive steps to enhance cybersecurity measures, UK businesses can not only comply with the directive but also strengthen their overall security posture.

Go Live UK Ltd. is here to help you to demonstrate a high level of cyber security. Get in touch with us for a professional consultancy on cyber security and UK GDPR matters. We will offer you cyber solutions tailored especially for you, according to the needs and requirements of your business. Call us on 0203 8652 964, or send an email to [email protected].