Cybersecurity Now a Boardroom Priority Under EU’s NIS 2 Directive

The European Union’s NIS 2 Directive (EU 2022/2555) marks a pivotal shift in cybersecurity governance, expanding regulatory obligations to a broader range of sectors and enhancing enforcement mechanisms to address modern cyber threats. The directive, which became effective for member states by October 2024, imposes mandatory cybersecurity risk management and incident reporting obligations on both “essential” and “important” entities. These entities span high-criticality sectors such as energy, transport, banking, and public administration, as well as critical services like digital infrastructure, cloud computing, and postal services. Notably, NIS 2 broadens the scope beyond traditional infrastructure providers to include organizations that may play a less central but still vital role in digital ecosystems [1].

The directive mandates that companies implement robust cybersecurity frameworks, including risk assessments, technical safeguards, and business continuity plans. It also introduces new requirements for supply chain security, emphasizing the need for thorough risk assessments of third-party vendors. Entities are expected to maintain formal vulnerability management processes, coordinate with national Computer Security Incident Response Teams (CSIRTs), and adhere to strict timelines for incident reporting. Failure to comply could result in administrative fines of up to €10 million or 2% of global annual turnover, whichever is higher. Moreover, company executives face personal accountability for compliance, with potential consequences including disqualification from leadership roles [1].

National implementation of NIS 2 has varied across the EU. While countries such as Italy and Belgium have integrated the directive into their legal frameworks, others like Germany and France remain in the process of finalizing their legislation. Variations in national laws have created compliance challenges for cross-border businesses, as entities may face divergent requirements depending on the jurisdictions in which they operate. For example, Germany’s draft law includes a provision allowing certain “negligible” business activities to be excluded from regulatory scope, introducing uncertainty due to the lack of a clear definition of “negligible” [1]. Belgium’s law, meanwhile, mandates a coordinated vulnerability disclosure policy, with national CSIRTs serving as intermediaries in reporting processes [1].

The directive also underscores the importance of embedding cybersecurity into corporate governance, shifting the responsibility from technical teams to executive leadership. Organizations must establish cybersecurity-aware cultures through training and ensure that cybersecurity strategies are reviewed and approved at the board level. This aligns with the broader regulatory trend of treating cybersecurity as a core business risk rather than a peripheral IT issue. Compliance platforms such as Drata have emerged to help companies streamline the NIS 2 compliance process, offering automated control monitoring, policy templates, and cross-framework integration to reduce administrative burdens [3].

Meanwhile, the EU’s cybersecurity landscape is evolving in response to emerging threats. A recent vulnerability, CVE-2025-41056, highlights the ongoing risks in software systems. The flaw, a stored authenticated cross-site scripting (XSS) vulnerability in appRain CMF version 4.0.5, enables malicious input to be executed in user sessions. Such vulnerabilities underscore the necessity for proactive risk management under NIS 2, including rigorous input validation and timely patch deployment [2].

Looking ahead, the EU faces the challenge of harmonizing cybersecurity standards while allowing for national customization. The European Commission has already initiated infringement proceedings against member states that missed the October 2024 implementation deadline, signaling a firm commitment to enforce minimum harmonization. As national laws evolve, organizations must remain vigilant in monitoring regulatory changes and adapting their cybersecurity strategies accordingly. The directive’s emphasis on accountability, technical resilience, and cross-border compliance is set to redefine the operational and governance expectations for businesses across the EU.

Source:

[1] EU NIS 2 Directive: Expanded Cybersecurity Obligations for Key Sectors (https://natlawreview.com/article/eu-nis-2-directive-expanded-cybersecurity-obligations-key-sectors)

[2] CVE-2025-41056 Detail - NVD (https://nvd.nist.gov/vuln/detail/CVE-2025-41056)

[3] NIS 2 Compliance (https://drata.com/product/nis-2)