Is Your Business Ready for NIS2?
With the rapid development of technology across the world, cyber threats are evolving faster than ever. To counter these risks, the European Union has announced NIS2, the Network and Information Systems Directive 2, a new regulation due in October 2024. This new regulation aims to boost cybersecurity across the EU, affecting a wide range of businesses and organizations including those based in the EU as well as outside. But what does it mean for your data backup strategy? Let's dive in.
What is NIS2?
NIS2 is the successor to the original NIS directive, introduced in 2016. It's designed to address the shortcomings of its predecessor and create a more uniform approach to cybersecurity across EU member states. Think of it as a cybersecurity upgrade for the entire European Union.
The directive sets out measures to ensure a high common level of cybersecurity across the EU. It's not just about protecting data - it's about safeguarding entire networks and information systems that are crucial for the functioning of our society and economy.
Who does NIS2 apply to?
NIS2 casts a wider net than its predecessor, covering more sectors and organizations. It applies to "essential" and "important" entities that meet certain criteria:
Location: If an organization provides services or carries out activities in any EU country, they're in scope - even if they're not based in the EU.
Size: Generally, medium and large enterprises are covered. This means organizations with more than 50 employees and over 10 million euros in annual revenue.
Industry: NIS2 covers a broad range of sectors, from energy and transport to healthcare and digital infrastructure. It also includes new sectors like food production, waste management, and postal services.
Key industries impacted by NIS2 include:
- Energy
- Transport
- Banking
- Financial market infrastructures
- Health
- Drinking water
- Waste water
- Digital infrastructure
- ICT service management (business-to-business)
- Public administration
- Space
- Postal and courier services
- Waste management
- Manufacture, production, and distribution of chemicals
- Production, processing, and distribution of food
- Manufacturing
- Digital providers
- Research
Why NIS2 Matters for Your Data Backup Strategy
Now that we understand what NIS2 is and who it affects, let's explore why it's crucial for your data backup strategy. NIS2 places a strong emphasis on risk management and incident response - areas where a solid backup strategy is crucial. Under NIS2, organizations need to have robust measures in place to prevent, detect, and respond to cyber incidents. This includes having a comprehensive business continuity plan, which naturally involves backing up critical data and systems.
Here's why your backup strategy is more important than ever:
- Incident Reporting: NIS2 requires organizations to report significant incidents within 24 hours. If you have a reliable backup system, you can quickly assess the impact of an incident and provide accurate reports.
- Risk Management: Regular backups are a key part of risk mitigation. They ensure you can recover your data and systems even in the worst-case scenarios.
- Business Continuity: In the event of a cyber attack, your ability to restore systems and data quickly can make the difference between a minor hiccup and a major crisis.
- Supply Chain Security: NIS2 emphasizes the importance of security throughout the supply chain. Your backup strategy should include plans for protecting data shared with or managed by third-party providers. The directive specifically requires organizations to ensure their entire data supply chain is secure, including carefully vetting data back-up suppliers.
NIS2 refers to the need to guard against "aggressive actors" who might exploit vulnerabilities in the supply chain. This means that choosing a backup provider with strong EU ties, like Macrium, can be a strategic move. EU-founded companies are inherently aligned with EU data protection standards and well-positioned to meet NIS2 requirements, helping ensure full compliance across your data ecosystem.
The Consequences of Non-Compliance
Before we dive into how to prepare your backup strategy for NIS2, it's important to understand what's at stake. NIS2 isn't just a set of guidelines - it comes with significant penalties for non-compliance:
- For essential entities: Fines of up to €10 million or 2% of the total worldwide annual turnover, whichever is higher.
- For important entities: Fines of up to €7 million or 1.4% of the total worldwide annual turnover, whichever is higher.
Beyond the financial implications, non-compliance could lead to reputational damage, loss of customer trust, and potential business disruption. It's clear that taking NIS2 seriously is not just a regulatory requirement, but a business imperative.
Building a NIS2-Ready Backup Strategy
As we've seen, NIS2 places significant emphasis on data protection and business continuity. A strong backup strategy is no longer just good practice – it's a compliance requirement. A NIS2-compliant backup strategy needs to be comprehensive, secure, and resilient. Here are some key elements that will help ensure your backup plan meets the new standards while safeguarding your organization's critical data:
- Assess Your Data: Start by understanding what data is critical to your operations and prioritize its protection.
- Implement Robust Backup Processes: Consider using the 3-2-1 rule: three copies of your data, on two different media, with one copy off-site.
- Test Regularly: Don't just set and forget your backups. Regular testing ensures you can recover when needed.
- Secure Your Backups: Encrypt your backups and store them securely to prevent unauthorized access.
- Train Your Team: Ensure everyone understands their role in data protection and backup procedures.
Next Steps
NIS2 starts coming into effect on October 18, 2024. While that might seem far off, preparing for compliance takes time. Whether you're based in the EU or do business with European partners, it’s wise to start assessing your current cybersecurity measures, including your backup strategy, against NIS2 requirements now.
Looking for more? We recently held a webinar "How Your Data Backup Plan Supports NIS2 Compliance" with Mike Hopewell from Minerva Secure. We covered practical strategies for aligning your backup plans with NIS2 requirements and discussed the key elements of a robust data protection approach.
To find out more about how Macrium can help your business prepare for NIS2 and strengthen your data backup strategy, speak to one of our experts.
Macrium Appoints New CEO For Growth and Transformation
Was Your Business Prepared for the CrowdStrike Incident?