NIS 2: Boosting supply chain security

Intercloud.Oct 02, 2024

Strengthening cybersecurity for a resilient and compliant Europe

As the threat landscape continues to evolve with rising cyber attacks, supply chains have become a primary target for cybercriminals. These attacks, which exploit vulnerabilities in suppliers, represent critical entry points into networks and information systems. To address this growing risk, the NIS 2 Directive was introduced to enhance supply chain security across Europe’s critical sectors. European Union member states have until October 17, 2024, to transpose the directive into national law. As the compliance deadline approaches, organizations must take proactive steps to strengthen their supply chains in the face of evolving cyber threats and ensure business continuity.

Why NIS 2 compliance is critical

Mourad El Malki, CISO at InterCloud, emphasizes the importance of the NIS 2 Directive in reinforcing supply chain security. Non-compliance carries severe penalties: fines of up to €10 million or 2% of global annual turnover for essential entities, and up to €7 million or 1.4% of turnover for significant entities. The directive is a crucial legislative measure to enhance the cybersecurity of critical infrastructure and mitigate risks associated with subcontractors, contributing to cyber resilience.

Organizations are now required to conduct regular and detailed risk assessments to identify vulnerabilities within their operations and supply chains. This evolution underscores the urgency for companies to reinforce their security measures, not only to protect their own systems but also to safeguard their partners and suppliers. With supply chains increasingly targeted by cybercriminals, the NIS 2 Directive establishes a strong regulatory framework for securing digital services and critical infrastructures across Europe.

Expanded coverage of NIS 2

In France, the NIS 2 Directive will apply to 15,000 entities, ten times more than under the previous directive. Across the EU, approximately 150,000 entities will now fall under NIS 2's requirements, covering sectors such as energy, transport, healthcare, financial services, and manufacturing. This significant expansion reflects the growing recognition of the interdependence of critical infrastructures. A cyberattack targeting a seemingly minor entity could have cascading effects on the entire supply chain or even the broader economy.

As a result, affected organizations must implement robust cybersecurity measures to protect both their internal systems and their suppliers' systems. The NIS 2 Directive aims to strengthen Europe's resilience against cyber threats by reinforcing security protocols throughout the supply chain.

Key steps for NIS 2 compliance

To comply with the NIS 2 Directive, organizations must focus on several critical areas of supply chain security:

Identify and assess cybersecurity risks: This involves mapping out the supply chain and understanding the types of data and systems suppliers have access to. Regular risk assessments are necessary to detect vulnerabilities.
Implement security controls: Organizations need to establish strict security measures for suppliers, such as contractual requirements, security audits, and access controls to mitigate the risk of cyber threats.
Monitor supplier activities continuously: Constant surveillance of supplier activities is crucial to detect suspicious behavior and take corrective action in case of incidents.
Report incidents quickly: Organizations must notify the relevant authorities of cybersecurity incidents. This helps authorities track cybersecurity trends and take preventive action.

The benefits of NIS 2 for supply chain security

The NIS 2 Directive offers several benefits to organizations across Europe, especially in terms of supply chain security:

Heightened focus on security: The directive requires organizations to prioritize their supply chain security, leading to a greater awareness of risks and the adoption of best practices.
Stronger supplier controls: By enforcing stricter security measures for suppliers, NIS 2 makes it harder for cybercriminals to exploit vulnerabilities in the supply chain.
Enhanced collaboration: The directive encourages organizations to collaborate with regulatory authorities, facilitating information sharing and improving incident response coordination.

How does InterCloud help?

As organizations strive to comply with NIS 2, InterCloud offers comprehensive solutions to help businesses meet the directive's stringent requirements. With expertise in supply chain security, InterCloud provides essential support in several areas:

Risk management solutions: InterCloud enables organizations to map out their supply chain risks, ensuring they have the right protocols in place to protect their networks from potential cyberattacks. Through regular assessments and continuous monitoring, InterCloud helps businesses stay compliant with NIS 2.
Zero Trust security model: InterCloud advocates for the implementation of Zero Trust architectures, requiring continuous verification of all users and devices accessing a network. This approach perfectly aligns with NIS 2’s emphasis on strong security measures, offering better protection for critical infrastructures.
Incident response and real-time reporting: With InterCloud’s real-time monitoring and incident response capabilities, organizations can quickly detect and address cybersecurity incidents, minimizing potential damage and ensuring compliance with NIS 2's reporting obligations.
Operational simplicity: By simplifying network operations, InterCloud helps organizations focus on strategic compliance, allowing them to manage their supply chain security without being overwhelmed by operational complexities.

Moving forward: Trust and continuous control

As cyber threats continue to grow, organizations must adopt a proactive approach to strengthen their supply chains. Working with trusted partners who understand both the technical and regulatory challenges of NIS 2 is essential. When selecting a partner to manage critical IT functions, companies should ensure the partner not only meets their specific needs but also has the expertise to assist in implementing technical and organizational security measures required by NIS 2.

Maintaining vigilance and ensuring continuous control over supply chain security is crucial for resilience in today’s cyber landscape. With InterCloud’s expertise, businesses can navigate the complexities of NIS 2 compliance with confidence, ensuring both operational excellence and robust cybersecurity.