The NIS 2 Directive: Impact on MSPs, MSSPs and Their Clients

NIS 2 has come into effect, and by October 2024 EU-member states are required to add this Directive to their legislation. For MSPs and MSSPs, NIS 2 is an opportunity to position themselves in front of their clients as a trusted partner and a security and compliance leader and expert. Below, we detail how you can help your clients meet the new requirements and even how to overcome any objections they may have.

Brief Reminder: What is NIS

The Network and Information Systems (NIS) Directive is an EU legislation designed to strengthen network and information system security in the EU. Adopted in July 2016, it was the first EU-wide legislation on cybersecurity.

According to NIS, organizations are required to adopt cybersecurity strategies to enable service continuity. They also need to report incidents that impact this ability. NIS applies to various sectors, including energy, transport, banking, financial market infrastructures, health, drinking water supply and distribution and digital infrastructure.

What is NIS2? What Does it Add on to NIS?

NIS 2 is an update of the NIS Directive. It came into act in July 2023 and EU member states are required to add it to their legislation by October 2024. NIS 2 aims to expand NIS, adding new cybersecurity requirements and new sectors that are required to comply This is meant to enhance the resilience and incident response of the EU and its public and private entities.

The main additions include:

Broader Sector Coverage

A number of new sectors are required to comply with NIS2. These include digital infrastructure providers, public administration entities, food production and distribution, waste management and more. The expansion is meant to ensure a comprehensive approach across critical services to enhancing cybersecurity.

Mandatory Cybersecurity Measures

There are a number of specific cybersecurity measures NIS 2 requires:

• Access controls
• Incident detection and response
• Regular security audits
• Supply chain security controls
• Employee training programs

These measures are designed to ensure that organizations have a robust cybersecurity framework in place to protect against threats.

Enhanced Incident Reporting Requirements

NIS2 mandates stricter incident reporting obligations. Organizations must report significant cybersecurity incidents to national authorities or CSIRTs within 24 hours of detection, followed by a detailed report within 72 hours. Impacted recipients must be notified immediately. This aims to ensure timely and effective incident response and coordination.

Stronger Risk Management and Governance

With NIS2, organizations are required to implement robust risk management practices. This includes regular risk assessments, the adoption of appropriate technical and organizational measures and ensuring top management is actively involved in cybersecurity governance and oversight.[2]?[3]?

Focus on Supply Chain Security

With NIS2, organizations are required to assess and manage the cybersecurity risks posed by their suppliers and service providers. This includes ensuring that third-party vendors comply with relevant security requirements and integrating supply chain security into overall risk management strategies.

Penalties for Non-Compliance

Non-compliance with NIS 2 can lead to significant penalties. These can even reach €10,000,000 or 2% of the global annual revenue, whichever is higher.

Harmonization Across the EU

NIS2 sets common standards and requirements. This is intended to reduce disparities in cybersecurity practices and enhance the overall security posture across the EU.

Increased Cooperation and Information Sharing

NIS2 advocates for increased cooperation and information sharing between member states, national authorities and organizations. This includes participating in information sharing groups, reporting incidents, and sharing threat intelligence to improve collective cybersecurity resilience.

How MSPs and MSSPs Can Help Their Clients Meet NIS 2

Your clients are busy, and sometimes do not have the time, bandwidth or resources to ensure they are planning for NIS 2 compliance. This is where you can help. Follow these practices:

1. Conduct Comprehensive Risk Assessments

Perform detailed risk assessments for each of your obligated clients, to identify vulnerabilities and areas that need improvement, based on the NIS 2 framework. Use these assessments to tailor security measures to each client’s specific needs. An automated and AI-based vCISO platform that supports compliance capabilities can assist, streamlining the process, ensuring a comprehensive and structured assessment can create a clear report that can be shared with the client.

2. Recommend the Implementation of Robust Security Measures

Advise your client to deploy essential security controls. These include access control, firewalls, intrusion detection/prevention systems, endpoint protection and encryption. Ensure these measures are continuously updated and monitored. While they are not all listed in NIS 2, they all allow meeting the NIS 2 requirements for basic security hygiene.

3. Develop and Manage Incident Response Plans

Work with your clients to create customized incident response plans. The plan should outline? procedures for detecting, reporting and responding to cybersecurity incidents; backups and redundancy for business continuity; and authority reporting procedures. Regularly test and update these plans to ensure they remain effective.

4. Provide Continuous Monitoring and Logging

Set up continuous monitoring systems to detect and respond to security threats in real-time. Implement logging solutions to record security events, ensuring logs are regularly reviewed and maintained. This will help with quick response to incidents and with reporting to authorities about incidents, as required by NIS 2. It can also help your clients maintain transparency and trust with their own end-users.

5. Facilitate Compliance Training and Awareness

Offer regular cybersecurity training and awareness programs for your clients. Explain to them what they are required to do under NIS 2 and how it strengthens their security strategy. This will help them prepare and also instill confidence in their ability to meet NIS 2 requirements.

6. Develop Comprehensive Security Policies

Assist customers in developing and maintaining comprehensive security policies and procedures that align with NIS2 requirements. Ensure these policies are regularly reviewed and updated. An automated platform can help develop such policies with AI.

7. Enhance Supply Chain Security

Evaluate the cybersecurity practices of your clients’ third-party vendors and service providers. Help customers integrate supply chain security into their overall risk management strategies. You can use the same platform you used to assess your clients, on their suppliers (with their consent).

8. Prepare for Incident Reporting

Establish clear processes for timely and accurate incident reporting to relevant national authorities or CSIRTs. Ensure customers understand what constitutes a reportable incident. how to report it and when. An automated vCISO platform can help generate immediate reports that shorten the process.

9. Utilize Automated Compliance Tools

Automated compliance tools can help customers manage and document their compliance efforts. These tools can simplify the process of gathering evidence, tracking progress and generating reports. For example, an AI-based vCISO platform helps assess the client’s compliance posture based on the specific required framework, identify gaps, create a plan, track it and generate reports.

10. Ensure Regular Security Audits and Assessments

Conduct regular security audits and assessments to track progress and ensure ongoing compliance with NIS2 requirements. Use the findings to continuously improve security measures and address any gaps.

11. Support Business Continuity and Disaster Recovery Planning

Assist customers in developing and maintaining business continuity and disaster recovery plans. Regularly test these plans to ensure they are effective and up-to-date.[4]?[5]?

12. Promote Information Sharing and Collaboration

Encourage customers to participate in information sharing and collaboration initiatives with other organizations, sectoral bodies and national authorities. This can enhance their collective cybersecurity resilience and also encourage them to implement more security practices, which is an upselling opportunity for you.

How MSPs Can Convince Their Clients to Follow NIS2 Compliance

While complying with NIS 2 is non-negotiable, not all your clients might be enthusiastic about planning and executing its requirements. Here are a few strategies the can help you show them the value of doing so:

• Highlight Regulatory Requirements - Clearly explain the legal obligations and requirements of the NIS2 directive. Emphasize that compliance is mandatory for their sector and non-compliance can result in significant penalties and legal repercussions.
• Demonstrate Business Benefits - Show how NIS2 compliance can enhance their cybersecurity posture, reduce the risk of cyber incidents, provide a competitive advantage and protect their reputation. Explain that a strong cybersecurity framework can lead to increased customer trust and potential business opportunities.
• Emphasize Risk Mitigation - Provide examples of cyber incidents that impacted similar businesses. Highlight how compliance with NIS2 could have mitigated these risks and protected the business from financial and operational disruptions.
• Offer Success Stories - Share testimonials and success stories from other clients who have benefited from NIS2 compliance, demonstrating its positive impact.
• Offer a Compliance Roadmap - Present a clear, step-by-step roadmap for achieving compliance. Break down the process into manageable phases, showing that compliance is achievable without overwhelming their resources. A vCISO platform can help build such a plan.
• Show Cost-Effectiveness - Illustrate how investing in compliance now can save money in the long run by avoiding fines, reducing the cost of incident response and minimizing downtime from cyber incidents.
• Leverage Your Expertise and Tools - Demonstrate your expertise and experience in cybersecurity and compliance. Highlight the tools and services you offer that will simplify the compliance process, such as automated compliance management, continuous monitoring and incident response. This is also an upselling opportunity for you.
• Provide Customized Solutions - Tailor your services to the specific needs and risks of the end-customer. Show how your customized approach addresses their unique challenges and aligns with their business objectives.
• Promote Continuous Improvement - Emphasize that cybersecurity and compliance are ongoing processes. Offer to support them with regular updates, training, and assessments to continuously improve their security posture.
• Build Trust and Relationships - Establish a strong relationship based on trust. Show that you are a partner in their success, not just a service provider. Regularly communicate and provide updates on progress and emerging threats.
• Create Awareness Programs - Conduct workshops, webinars and training sessions to educate your end-customers on the importance of NIS2 compliance. Awareness programs can help them understand the directive and its implications better.

For Cynomi Users

Cynomi is an AI-based and automated vCISO platform for MSPs and MSSPs looking to grow revenue and streamlining security and compliance processes. Cynomi’s compliance coverage includes NIS 2. With Cynomi, MSPs and MSSPs can:

• Conduct simplified and automated compliance assessments to determine client’s readiness for NIS 2
• Create an automated remediation plan to address NIS 2 gaps
• Report on progress with comprehensive and shareable reports that can also be used with management and auditors
• Show value over time, positioning themselves as a business partner and compliance expert

Using Cynomi, you can assist your clients become NIS 2 compliant and grow your revenue, without straining your own resources or having to invest significant time and effort in becoming a NIS 2 expert.