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Compliance

Navigating NIS2: A Comprehensive Guide to Incident Reporting Obligations

The NIS2 Directive introduces new requirements for organizations to bolster Europe’s resilience against cyber threats. A key aspect of NIS2 is the mandatory reporting of security incidents. Essential entities must have processes for the timely reporting of security incidents with significant impact.

NIS2 Reporting Obligations

Under NIS2, a “significant incident” is any event compromising the availability, authenticity, integrity, or confidentiality of stored, transmitted, or processed data, or the services offered. Specifically, an incident is considered significant if it has caused or is capable of causing severe operational disruption of services or financial loss for the entity, or if it has affected or is capable of affecting other natural or legal persons by causing considerable material or non-material damage.

Factors such as the extent to which a service is affected, the duration of the incident, or the number of affected recipients can help determine the severity of an operational disruption. Both essential and important entities are required to report significant incidents.

Entities must report significant incidents to the following:

  • The Computer Security Incident Response Team (CSIRT) or a competent authority, which are designated by Member States.
  • Recipients of services from essential or important entities who are potentially affected by the incident.

How to Report Significant Incidents 

The NIS2 Directive requires companies to report significant incidents in specific ways:

  • Notification to Recipients of Services: Without undue delay, inform recipients of services potentially affected by a significant cyber threat about measures or remedies they can take and the nature of the threat.
  • Early Warning: Within 24 hours of becoming aware of a significant incident, submit an early warning to the CSIRT or competent authority, indicating if the incident is suspected to be caused by unlawful or malicious acts or could have a cross-border impact.
  • Incident Notification: Within 72 hours of becoming aware of the significant incident, submit an incident notification to the CSIRT or competent authority with an initial assessment of the incident, including its severity and impact, and any indicators of compromise.
  • Intermediate Report: Provide the CSIRT or competent authority with relevant status updates upon request.
  • Final Report: No later than one month after submitting the incident notification, submit a final report to the CSIRT or competent authority, including a detailed description of the incident, the type of threat or root cause, mitigation measures, and the cross-border impact, if applicable.
  • Progress Report: In the event of an ongoing incident at the time of the final report, provide a progress report at that time and a final report within one month of handling the incident.

Preparing for Compliance 

To comply with NIS2, organizations should:

  • Scope Determination: Conduct a thorough assessment to determine whether the organization falls under the scope of NIS2. This involves identifying specific units or areas of operation that are impacted by the regulation.
  • Policy and Planning Review: Evaluate existing security policies and procedures to identify any gaps or areas that need to be amended to align with NIS2 requirements. Develop a comprehensive plan for NIS2 compliance, outlining specific actions, timelines, and responsibilities.
  • Security Enhancement: Implement new or enhanced security measures to address any identified vulnerabilities and meet the heightened security standards mandated by NIS2. This may involve investing in new technologies, training staff, or adopting more robust security protocols.
  • Supply Chain Integration: Extend NIS2 compliance efforts to the organization’s supply chain. This includes incorporating new security measures and incident reporting obligations into contracts and agreements with suppliers and partners. Clearly communicate expectations and requirements to ensure that all parties in the supply chain are aware of their responsibilities under NIS2.
  • Incident Reporting Procedures: Establish clear and efficient procedures for reporting security incidents to the relevant authorities as required by NIS2. This includes defining roles and responsibilities within the organization, establishing communication channels, and developing templates or forms to facilitate timely and accurate reporting.
  • Ongoing Monitoring and Improvement: Regularly monitor and assess the organization’s NIS2 compliance posture. Conduct periodic reviews of security policies, procedures, and incident response plans. Stay informed about any updates or changes to NIS2 requirements and adjust compliance efforts accordingly.

While implementing cybersecurity measures can lower the chances of incidents, preparation for reporting is essential. Understanding and adhering to NIS2’s incident reporting obligations is crucial for maintaining cybersecurity and ensuring compliance.

RadarFirst can help with your cybersecurity obligation reporting. Our software simplifies third-party risk and risk management to help your organization stay compliant with NIS2’s stringent requirements. Contact us today to learn more about how we can help you navigate the NIS2 landscape. By offering tools, such as documentation, automation, and third-party risk assessment, organizations can more readily ensure they meet the requirements for compliance and reporting.

NIS2 Risk Reporting Simplified

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