Key Implications Of The NIS 2 Directive: Increased Liability Risk For Management And Broader Scope

The revision of the NIS Directive (EU) 2016/1148 ("NIS 1") was published on 27 December 2022 in the form of Directive (EU) 2022/2555 ("NIS 2") and entered into force on 16 January 2023. NIS 2 is the Commission's response to Member States' inconsistent and fragmented implementation of NIS 1. The revision of this first EU-wide cybersecurity legislation will mean significant and far-reaching changes for companies in "critical" sectors.

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Expansion of the scope

Under NIS 1, Member States were left to determine which entities met the criteria for designation as operators of essential services. This inevitably led to inconsistent and therefore unsatisfactory application of its provisions. NIS 2 addresses this shortcoming by introducing a size cap rule based on Commission Recommendation