With NIS2 enforcement deadlines approaching, businesses must act now to ensure compliance and mitigate risks. In this guide, you’ll learn why NIS2 compliance should be a top priority, what steps you need to take for implementation, and how DataGuard can support you in meeting the new requirements.
What is the NIS2 directive?
The NIS2 Directive is the EU’s latest cybersecurity regulation, setting stricter security requirements for businesses across Europe. It significantly expands the scope of cybersecurity obligations, affecting thousands of organizations across multiple sectors.
The NIS2 Directive is an updated version of the EU’s Network and Information Security (NIS) Directive. It introduces stricter cybersecurity requirements for businesses operating in critical and important sectors. NIS2 was adopted at the EU level in 2024, and member states are now in the process of implementing it into national law. In Germany, enforcement is expected to begin in 2025.
The original NIS Directive (2016) focused primarily on essential infrastructure, such as energy and transport. NIS2 expands its scope to include industries like healthcare, digital services, and manufacturing. Specific requirements will vary by country, depending on how each government translates the directive into law.
The key goal? Boosting cybersecurity resilience across Europe. This includes stricter security measures, mandatory incident reporting, and significant penalties for non-compliance – up to €10 million or 2% of global annual revenue.
NIS2 vs. NIS1: key differences and what’s new
The NIS2 Directive strengthens the original NIS1 framework, expanding cybersecurity obligations to a much broader range of businesses and industries. The biggest change? More companies now fall under its scope.
What’s different with NIS2?
- Expanded coverage: NIS1 applied only to essential service providers. NIS2 now includes many mid-sized businesses in key industries such as manufacturing, financial services and digital services.
- Stricter security requirements: Companies must implement comprehensive risk management, incident response, and reporting procedures.
- Higher penalties: While NIS1 had limited enforcement, NIS2 introduces fines of up to €10 million or 2% of global annual revenue.
- Stronger oversight: Regulatory authorities now have greater powers to audit, investigate, and enforce compliance.
The bottom line:
NIS2 makes cybersecurity a legal obligation for more businesses—and the consequences of non-compliance are far more serious. Organizations that start preparing for NIS2 now will reduce risks and ensure compliance in the long run.
Who needs to comply with NIS2?
NIS2 applies to both industrial and non-industrial organizations across the EU, including their suppliers operating in critical sectors. Critical sectors include for example healthcare, transport and logistics, energy, and public administration. If your company provides essential services or plays a key role in the supply chain, you may be affected.
In Germany alone, an estimated 30,000 businesses must comply with NIS2. The directive categorizes organizations into two groups based on size and sector:
Organizations are categorized under NIS2 into two primary groups based on their sector and size: important entities and essential entities, with essential entities subject to stricter compliance obligations.
- Essential entities: These entities are subject to stricter compliance obligations
- Important entities: Depending on their size, entities that are not considered essential still fall under NIS2 obligations
The thresholds for the size of affected companies vary depending on the sector and fall into two categories: either 50 employees (or annual revenues above €10 million), or 250 employees (or annual revenues exceeding €50 million and a balance sheet total above €43 million).
Is your organization affected by NIS2?
Use the DataGuard NIS2 Checker to quickly assess whether your company falls under the new requirements and discover your next steps.
| Essential entities | Important entities |
| NIS2 applies to companies in critical sectors, including: | Beyond essential industries, NIS2 also applies to businesses in a number of sectors, including: |
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For SMBs, NIS2 means making cybersecurity a priority—even without large IT teams. Larger corporations face even stricter requirements and higher penalties for non-compliance. By preparing early, businesses can streamline compliance, minimize risks, and avoid costly fines.
NIS2 compliance: requirements and implementation
The NIS2 Directive requires organizations to strengthen their cybersecurity measures and report security incidents promptly. Compliance involves both technical and organizational actions across several key areas:
Risk management and security policies
Organizations must establish a systematic risk management approach to identify and mitigate cyber threats. This includes:
- Clear security policies for IT systems, data, and operational processes
- Regular risk assessments and proactive measures to reduce vulnerabilities
- Mandatory incident reporting to authorities within 24 hours of detection
Incident and crisis management
Cyber incidents need to be detected, managed, and resolved swiftly to minimize damage. Key requirements include:
- Incident detection processes for rapid response to cyber threats
- Emergency and crisis management plans to prevent operational disruptions
- Robust backup management and disaster recovery to restore business continuity
Supply chain security
Cyber risks extend beyond an organization’s internal systems—third-party vendors and service providers must also meet high security standards. Organizations should:
- Include security requirements in contracts with external providers
- Conduct regular audits and security assessments of suppliers
- Ensure secure software development throughout the supply chain
Access control and identity management
Unauthorized access is one of the biggest cybersecurity threats. To prevent breaches, organizations should:
- Implement strict access controls to limit data exposure
- Use Multi-Factor Authentication (MFA) or continuous authentication (e.g., Single Sign-On)
- Establish identity and access management policies to protect sensitive information
Cybersecurity awareness and training
Cyber resilience starts with employees. Organizations must:
- Provide ongoing security awareness training for all staff
- Offer specialized training for leadership to reinforce accountability
- Promote secure IT practices and cyber hygiene across the organization
Encryption and data protection
To safeguard sensitive information, organizations must use modern encryption methods to prevent data leaks and cyberattacks:
- End-to-end encryption for secure communications
- Cryptographic protection for confidential data storage and transmission
Continuous monitoring and improvement
Cybersecurity is an ongoing process. Organizations must:
- Continuously monitor and analyze security incidents to detect emerging threats
- Conduct regular internal and external audits to assess compliance
- Adapt security strategies to keep up with evolving cyber risks
Failing to meet NIS2 requirements can result in severe financial penalties—fines of up to €10 million or 2% of global annual revenue. Early adoption of NIS2 compliance not only ensures regulatory alignment but also reduces security risks and strengthens business resilience.
NIS2 compliance: key steps for implementation
Achieving NIS2 compliance doesn’t have to be overwhelming—a structured approach and the right tools can make the process more efficient. Automated solutions help businesses establish a streamlined system, ensuring compliance without unnecessary complexity.
Want to know more about NIS2? Check out our on-demand webinar and find out how you best prepare for NIS2.
Follow these essential steps to strengthen your cybersecurity posture and meet NIS2 requirements:
- Define responsibilities
Appoint at least two dedicated security officers to oversee NIS2 compliance and information security. Ensure they receive ongoing training and sufficient resources to fulfill their role effectively.
- Involve leadership
Cybersecurity is no longer just an IT issue—executives are now directly responsible for security compliance. Educate leadership teams on NIS2 obligations, implement clear decision-making processes, and integrate cybersecurity into business risk management.
- Assess your current security posture
Conduct a thorough audit of your existing security measures and compare them with recognized standards like ISO 27001. Identify gaps and prioritize necessary improvements.
- Identify and mitigate risks
Run a risk assessment to identify vulnerabilities and evaluate potential cyber threats. Develop targeted security measures to mitigate risks and prioritize high-impact improvements.
- Implement an ISMS (Information Security Management System)
A structured ISMS ensures consistent cybersecurity management. Frameworks like ISO 27001 or NIST standards provide proven methodologies to meet compliance requirements while enhancing security resilience.
- Conduct regular security audits
Cybersecurity is an ongoing effort. Perform internal and external audits to continuously improve security measures and detect vulnerabilities before they become a risk.
- Establish incident reporting processes
NIS2 mandates that security incidents must be reported within 24 hours. Implement a clear reporting workflow to detect, respond to, and escalate cybersecurity threats efficiently.
- Train and educate employees
Security is a company-wide responsibility. Regular cybersecurity awareness training helps employees recognize threats, follow best practices, and actively contribute to risk reduction.
- Secure your supply chain
Cyber risks often originate from third-party suppliers. Evaluate vendor security standards, require compliance clauses in contracts, and conduct regular security audits of your suppliers and partners.
- Maintain detailed documentation and compliance records
NIS2 compliance requires comprehensive documentation of all security measures and decision-making processes. A well-organized compliance record ensures audit readiness and reduces administrative burdens.
NIS2 compliance can be complex, but the right security and compliance platform simplifies the process. Automated risk management, real-time monitoring, and streamlined reporting reduce manual effort, minimize errors, and ensure continuous compliance. Scalable solutions adapt to any business size, cutting costs and resource strain while strengthening long-term cybersecurity resilience. Stay compliant effortlessly and focus on growth with a smarter approach to security.
NIS2 Compliance made easy with automation & platforms
Implementing NIS2 compliance can be complex and resource-intensive, especially for businesses without dedicated security teams. This is where security and compliance platforms make a real difference—automating key processes, minimizing risks, and consolidating all compliance requirements in one place.
With the right platform, businesses can:
- Automate risk assessments to detect vulnerabilities in real time and prioritize security measures efficiently
- Gain a centralized compliance overview with dashboards and reports that track NIS2 requirements and progress
- Integrate with an ISMS to streamline security management and simplify audit preparation
- Automate incident reporting to detect, respond to, and escalate security breaches quickly and in full compliance
- Train employees effectively with built-in e-learning modules to strengthen cybersecurity awareness
NIS2 compliance is about more than just ticking boxes—it requires a structured, scalable approach. By using an automated security and compliance platform, organizations can implement NIS2 efficiently, reduce resource strain, and minimize human error. Investing in smart automation not only ensures compliance but also strengthens long-term cybersecurity resilience.
Do you need an NIS2 certification?
There is no official NIS2 certification, but organizations will be required to demonstrate compliance with the directive. This means implementing effective cybersecurity measures, documenting security processes, and ensuring continuous monitoring to meet regulatory expectations.
Aligning with established security standards like ISO 27001 or TISAX® is a great starting point for NIS2 compliance. These frameworks provide a structured, proven approach to cybersecurity, helping businesses implement robust security measures and streamline compliance efforts. While they don’t replace NIS2 obligations, they cover key requirements, making it easier to demonstrate compliance and stay audit-ready.
- ISO 27001, the global benchmark for information security, already covers approximately 70% of NIS2 requirements.
- TISAX®, developed for the automotive sector, adds industry-specific security controls that complement NIS2.
With NIS2 enforcement expected by 2025, early adoption of security frameworks simplifies compliance, reduces regulatory risks, and builds trust with customers, partners, and regulators—a competitive advantage for proactive businesses.
Organizations will need to demonstrate compliance with the NIS2 regulation
Once the NIS2 Regulation is fully implemented into national law, organizations falling under its scope must prove compliance through structured cybersecurity measures and documented processes. While the directive sets the overarching framework, specific requirements will depend on how each EU member state enforces it.
Regulatory bodies will actively monitor compliance through audits, inspections, and enforcement actions. Businesses should maintain detailed security documentation, continuously improve cybersecurity measures, and leverage automation to streamline compliance.
NIS2 penalties: what happens if you don’t comply?
NIS2 doesn’t just introduce stricter cybersecurity requirements—it also significantly increases the penalties for non-compliance. Organizations that fail to meet their obligations face severe financial and legal consequences.
Penalties are based on organization size and the severity of the violation. NIS2 differentiates between:
- Essential entities: Fines of up to €10 million or 2% of global annual revenue, whichever is higher.
- Important entities: Fines of up to €7 million or 1.4% of global annual revenue.
Beyond financial penalties, executives and management teams now bear direct responsibility for cybersecurity compliance. In cases of negligence, leaders must prove they have implemented appropriate security measures. Failure to do so can result in legal consequences, including liability for security breaches. Additionally, NIS2 requires business leaders to ensure their teams are properly trained and actively engaged in cyber risk management.
Ultimately, with NIS2, cybersecurity is no longer just an IT concern—it’s a core business priority and management responsibility. Organizations that act early and document their compliance efforts reduce legal risks and strengthen their protection against cyber threats.
With the right platform, NIS2 compliance becomes easier. Automation reduces manual effort, enables real-time security monitoring, and ensures seamless documentation. Incident reporting is efficient and fully compliant—without additional workload. This way, businesses stay in control, minimize errors, and significantly lower the risk of costly penalties.
NIS2 vs. other security standards: what’s the difference?
Both NIS2 and ISO 27001 aim to strengthen cybersecurity, but they serve different purposes. NIS2 is a legal requirement with obligations and penalties, while ISO 27001 is a voluntary standard that helps businesses implement security measures in a structured way.
ISO 27001 already covers about 70% of NIS2 requirements, making it a strong foundation for compliance. Organizations that are ISO 27001 certified have an advantage when implementing NIS2, but they still need to meet additional obligations, such as mandatory incident reporting and enhanced risk management requirements.
NIS2 implementation: what organizations need to do now
NIS2 introduces new compliance obligations for organizations in critical and important sectors. Acting early minimizes risks and helps avoid costly penalties. But where should you start? This quick checklist provides a structured approach to NIS2 compliance:
- Define responsibilities – appoint at least two security officers to oversee NIS2 compliance.
- Establish risk management – conduct a comprehensive risk assessment and implement necessary security measures.
- Update security policies – review and strengthen existing IT and cybersecurity policies.
- Organize incident reporting – ensure that security incidents are reported within 24 hours as required.
- Secure your supply chain – verify that your suppliers and service providers comply with NIS2 standards.
- Train employees – regularly educate staff on cyber hygiene and security best practices.
Taking a proactive approach to NIS2 ensures compliance readiness, reduces security risks, and protects your business from regulatory fines.
Why NIS2 matters now
NIS2 is not something businesses can afford to delay—action is needed now to strengthen cybersecurity and ensure compliance. The directive applies to thousands of companies across Europe, introducing stricter security requirements, mandatory incident reporting, and significant penalties for non-compliance. Those who prepare early reduce risks and stay ahead of regulatory pressure.
The urgency is increasing: several EU countries, including Belgium and Italy, have already incorporated NIS2 into national law, while others, like Germany, are still finalizing implementation.
The European Commission has already launched legal action against member states that failed to meet the deadline—sending a clear message that delays will have consequences. Companies must act now to avoid last-minute compliance pressure in 2025.
But as security requirements become more complex, businesses face a critical challenge: How can NIS2 compliance be achieved efficiently, sustainably, and without unnecessary overhead?
Achieving NIS2 compliance efficiently
Meeting NIS2 requirements doesn’t have to be a complicated or time-consuming process. A structured, digital approach helps businesses automate security processes, minimize risks, and ensure long-term compliance.
A robust security and compliance platform should simplify cybersecurity management, not slow it down. The right solution integrates everything needed for NIS2 compliance, enabling businesses to manage security frameworks, centralize risk management, and streamline audits—all in one place.
Act now—before NIS2 enforcement begins
With NIS2 implementation already in motion across Europe, waiting is not an option. DataGuard’s platform makes compliance faster, easier, and more efficient—helping organizations assess current security measures, identify gaps, and define clear action steps.
By automating security processes and integrating compliance into daily operations, businesses can ensure NIS2 readiness without unnecessary complexity.
Still unsure? Talk to one of our experts about your way to NIS2 compliance.