---
title: Understanding The NIS2 Directive Requirements | Nexstor Ltd.
description: In this article, we’ll explore what the NIS2 Directive entails and its implications for British businesses that trade in the EU.
image: https://blog.nexstor.com/hubfs/Imported_Blog_Media/Untitled-design-9.jpg
---

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 Aug 28, 2024 12:05:20 PM

# Understanding The NIS2 Directive Requirements

[Rob Townsend](https://blog.nexstor.com/blog/author/rob-townsend)

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In a world that is becoming increasingly digital and interconnected, cybersecurity is an overriding concern for businesses across all sectors of commerce and industry. The consequences of cybercrime can be far-reaching, with global financial damage expected to reach [US$10.5tn](https://cybersecurityventures.com/cybercrime-damages-6-trillion-by-2021/) by the end of 2025. For many businesses, this translates as certain doom should they be targeted.

In response, the European Union has introduced the NIS2 Directive to address the evolving threats and ensure robust cybersecurity measures are in place. In this article, we’ll explore what the NIS2 Directive entails and its implications for British businesses that trade in the EU.

## What Is The NIS2 Directive?

The NIS2 Directive is an updated version of the EU’s Network and Information Systems (NIS) Directive and aims to tackle the growing and sophisticated threats in digital and network services. By establishing new standards for cybersecurity, the directive seeks to strengthen the resilience of critical infrastructure and essential services, ensuring they are better protected against cyberattacks.

## **To Whom Does NIS2 Apply?**

The scope of NIS2 is broad, impacting medium-sized and large companies across several key sectors. Specifically, it applies to businesses within [healthcare](https://nexstor.com/outdated-hospital-it-systems-health-audits/), digital services and infrastructure, banking and finance, and the food industry – sectors that are deemed critical for the efficient functionality of society and the economy. Delivering robust protection against cybercrime is crucial to maintain public safety and economic stability.

## **What Is Article 21?**

A key component of the NIS2 Directive is Article 21 which outlines ten essential areas that [organisations](https://nexstor.com/media-organisations-benefit-hybrid-cloud-solutions/) must address in their cybersecurity risk management strategies. These areas include:

- **Risk analysis**: Conducting thorough assessments to identify potential vulnerabilities and threats.
- **Incident response**: Establishing protocols for detecting, responding to, and mitigating cyber incidents.
- **Crisis management**: Preparing for and managing cyber crises to minimise their impact, for example through the implementation of a [disaster recovery plan](https://nexstor.com/backup-data-recovery/).
- **Supply chain security**: Ensuring that third-party suppliers and partners adhere to robust cybersecurity practices.
- **Cyber awareness training**: Educating employees about cybersecurity risks and best practices to reduce accidental exposure to criminality.
- **Multi-Factor Authentication (MFA)**: Enhancing security by implementing multiple forms of verification for access to critical systems.

By addressing these areas, organisations can build a comprehensive and resilient cybersecurity framework.

## **What Are The Penalties Of Non-Compliance?**

Non-compliance with the NIS2 Directive can have severe financial repercussions. Businesses that fail to adhere to the new regulations may face fines of up to €20m or 4 per cent of their global turnover, whichever is higher. These stringent penalties emphasise the importance the EU places on cybersecurity and the need for businesses to take these requirements seriously.

## **What Steps Should My Business Take?**

While the NIS2 Directive is not yet mandatory in the UK, the government is currently evaluating its effectiveness. However, it is highly recommended that businesses, particularly those operating within or with the EU, comply with the requirements of NIS2. A proactive approach will not only align with international best practices but also prepare businesses for future regulatory changes. Companies that already comply with ISO 27001 standards are likely to be well-prepared to meet the NIS2 requirements, as both frameworks share common principles.

## **Find Out More**

At [Nexstor](https://nexstor.com/about/), we have extensive [experience of delivering robust data security](https://nexstor.com/backup-data-recovery/) and storage solutions and can help your business to comply with all relevant regulatory requirements. Explore our bespoke DRaaS solutions to ensure your business is compliant with data protection and crisis management measures. 

Not ready to choose a DRaaS solution? Learn more about Disaster Recovery in our Ultimate Guide to Disaster Recovery Planning.

[Download the Disaster Recovery Guide](https://nexstor.com/guides/)

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