NIS vs NIS2: Key Differences Explained for EU Cybersecurity Compliance (part 1)

The NIS2 Directive is the updated version of the original NIS Directive, the European Union’s first cybersecurity regulation. Designed to close previous gaps and ensure consistent implementation across all EU member states, NIS2 significantly expands the scope of cybersecurity compliance.

This enhanced directive applies to all organizations classified as “essential” or “important entities” within the EU. Its goal is to improve cybersecurity and resilience across sectors critical to the functioning of society and the economy.

In InDevLab we provide detailed article what the key difference between NIS and NIS2.

Key Differences Between NIS and NIS2

The NIS2 Directive introduces a harmonized set of cybersecurity requirements across the EU. It mandates stricter incident reporting rules, enforces accountability at the management level, and establishes penalties for non-compliance. Key features include:

• Mandatory risk assessments and implementation of security measures

• Clear responsibilities for executive management

• Required cybersecurity training and ongoing risk management

• A coordinated EU-wide vulnerability and threat-sharing framework

Unlike technical standards, NIS2 focuses on best practices and governance principles rather than prescribing specific technologies.

NIS2 Compliance Deadlines for EU Organizations

To meet the NIS2 compliance requirements, EU member states must:

• Transpose NIS2 into national legislation by October 17, 2024

• Identify all essential and important entities by April 17, 2025

Entities that fall under the scope of the NIS2 Directive must register with the relevant authority in each EU country where they provide services. Registration must include:

• Company name, address, and registration number

• Relevant sector or sub-sector under NIS2

• Contact details and operational countries

• Assigned IP addresses

History and Evolution of NIS2

The original NIS Directive (Directive 2016/1148/EC) was adopted in July 2016 to strengthen cybersecurity across the EU. It aimed to:

• Improve national cybersecurity capabilities

• Enhance collaboration between EU member states

• Protect critical infrastructure and digital services

The Council of the European Union adopted the NIS2 Directive on November 28, 2022. The NIS2 Directive was published on December 27, 2022, officially replacing and repealing the NIS Directive (Directive 2016/1148/EC).

The European Union adopted a new version of the NIS Directive, the NIS2 Directive, on January 16, 2023. A primary goal of the NIS2 Directive is to expedite improvements to cybersecurity and resilience within essential and important organizations of the European Union.

EU member states were required to have the NIS2 Directive included in their national legislation by October 17, 2024.

 

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Why the EU Moved from NIS1 to NIS2: What You Need to Know

The first EU cybersecurity directive, known as NIS1 (Network and Information Systems Directive), was introduced in 2016. It was a groundbreaking move by the European Union to improve cybersecurity across all member states, especially in critical sectors like banking, energy, healthcare, transport, and water.

NIS1 was designed to set a minimum level of cybersecurity across the EU. It aimed to reduce inconsistent cybersecurity standards by requiring all member states to follow similar rules. This directive focused mainly on operators of essential services (OES) and digital service providers (DSPs)—think cloud services, online marketplaces, and search engines.

Under NIS1, these organizations were required to:

• Put in place strong cybersecurity measures

• Report major cybersecurity incidents to national authorities

• Work under the supervision of national regulatory bodies appointed by each member state

This brought several key benefits:

• Harmonization of cybersecurity practices across Europe

• A unified incident reporting system that made threats more visible

• Clear governance through national cybersecurity authorities

As cyber threats became more complex and widespread, it became obvious that NIS1 was no longer enough. The European Commission realized the need for stronger, clearer, and more modern regulations. That’s why they introduced NIS2—an updated and expanded version of the original directive.

NIS2 addresses the gaps in NIS1 and creates a stronger EU-wide cybersecurity framework, with more comprehensive risk management, stricter enforcement, and broader sector coverage. It reflects today’s fast-changing digital landscape and ensures that organizations are better prepared to defend against cyber attacks.

Key enhancements and changes from NIS1 to NIS2

Broader scope and increased coverage

One of the most significant changes in NIS2 is the expanded scope of coverage. NIS1 primarily focused on critical infrastructure sectors, but NIS2 broadened this scope to include more entities. This change reflected the interconnections between sectors.

By expanding coverage, NIS2 eliminates weak links caused by organizations that were previously exempt. With significantly more organizations being required to adhere to robust cybersecurity standards, the overall resilience of the EU’s digital infrastructure is materially enhanced.

Changes in organizations covered

The transition from NIS1 to NIS2 involved several significant changes in terms of the organizations covered by the directive. These changes reflect the evolving cyber threat landscape and the need for a more comprehensive approach to cybersecurity across EU member states.

Enhanced accountability and governance

With NIS2, senior management’s responsibility and accountability are increased. By doing so, NIS2 brings cybersecurity and cyber resilience to the executive level and increases its integration into core corporate governance.

This stronger emphasis on the accountability of senior management sees organizations’ management teams more fully involved in and responsible for cybersecurity governance. This includes overseeing the implementation of security measures and ensuring compliance with the directive.

Expanded scope of coverage

NIS1 primarily targeted operators of essential services (OES) in critical sectors such as energy, transport, water, banking, financial market infrastructures, health, and digital infrastructure. Additionally, it covered some digital service providers (DSPs), such as online marketplaces, online search engines, and cloud computing services.

NIS2 significantly expands the scope of coverage to include a broader range of sectors and entities. This expansion acknowledges the increasing interconnectivity and digitalization of various industries. A detailed list of organizations required to adhere to the rules set forth in NIS2 is below.

Improved incident reporting and information sharing

Under NIS1, incident reporting requirements were seen by many to be ambiguous and inconsistent across EU member states. NIS2 aimed to standardize and streamline these requirements, making them more precise and consistent.

For instance, under NIS2, organizations must report significant incidents to the relevant national authorities within a specific timeframe, ensuring timely and effective responses. Additionally, NIS2 emphasizes the importance of information sharing among EU member states and with the EU Agency for Cybersecurity (ENISA). This collaborative approach facilitates the rapid dissemination of threat intelligence and enables a more coordinated response to cross-border cyber threats.

Risk management measures

NIS2 mandates stricter risk management measures compared to NIS1. Under NIS2, organizations are required to implement comprehensive cybersecurity policies and procedures tailored to their specific risk profiles. It also requires that these risk management measures be proportionate to the actual risks faced by the organization. This is meant to ensure that organizations implement the security controls that are appropriate for their specific profile and that they have the capacity to scale to meet future demands.

Stricter security requirements

NIS2 introduces stricter security requirements for covered entities. These requirements include enhanced risk management measures, mandatory security incident reporting, and more comprehensive security controls. These requirements are meant to ensure that organizations have the right systems in place to support a risk-based approach to cybersecurity.

In addition to basic cybersecurity, NIS2 includes requirements that organizations implement cybersecurity measures that are proportionate to the risks they face. This is a significant shift from the one-size-fits-all approach of NIS1.

Continue your reading in next part of article for NIS vs NIS2: Key Differences Explained for EU Cybersecurity Compliance (part 2)

The NIS2 Directive – part of a growing trend

The NIS2 Directive represents a growing trend for cybersecurity and cyber resilience to be integral to legislation. With the NIS2 Directive, every EU member state is required to adopt it as law. The NIS2 Directive has a far reach into organizations of all types with the intention of shoring up defenses against escalating cyber threats. The good news about the NIS2 Directive and similar initiatives is that it helps organizations improve their overall cybersecurity posture, which has positive impacts on all aspects of operations.

Want to Know How to Prepare Your Organization for NIS2?

1. If you’re unsure how the NIS2 Directive applies to your organization or what steps you need to take for compliance, we’re here to help.
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