Will NIS2 affect your business?

Even as the UK charts its own path post-Brexit, developments in EU cybersecurity law continue to have a major impact. The NIS2 Directive, introduced by the European Union in 2023, strengthens cybersecurity requirements for essential and important industries — and it’s something UK businesses cannot afford to ignore.

Whether you trade in the EU, operate as part of a multinational supply chain, or simply want to future-proof your cybersecurity, understanding NIS2 is critical for directors and business owners today.

The NIS2 Directive is an evolution of the original 2016 Network and Information Systems (NIS) Directive. It dramatically expands the scope of cybersecurity obligations across the EU, covering a wider range of industries — from energy, transport, and finance to digital services, manufacturing, and healthcare.

Under NIS2, organisations must implement stricter risk management practices, report incidents promptly, and demonstrate compliance through governance and technical measures. Significantly, directors and senior leadership are held personally accountable for ensuring cybersecurity readiness.

Although the UK is no longer bound by EU law, NIS2 still affects many British businesses in key ways:

• Supplying EU Clients: If your business provides goods or services to EU companies regulated by NIS2, you will likely be expected to meet similar cybersecurity standards.

• Operating in Europe: UK-based companies with subsidiaries or operations in the EU must comply directly with NIS2 requirements.

• Competitive Advantage: Demonstrating alignment with NIS2 standards will increasingly become a prerequisite to win contracts or maintain relationships with EU partners.

Ignoring the principles of the NIS2 Directive could mean losing out on business opportunities, facing supply chain disruptions, or appearing out of step with emerging global cybersecurity norms.

The NIS2 Directive introduces several obligations that forward-thinking UK businesses should prepare for:

• Robust Cybersecurity Risk Management: Businesses must adopt appropriate technical and organisational measures, covering areas such as access control, supply chain security, and encryption.

• Incident Reporting: Major cybersecurity incidents must be reported within tight timeframes — typically within 24 hours of becoming aware of the issue.

• Executive Accountability: Board members and directors are responsible for overseeing cybersecurity compliance and can face penalties for failures.

• Supply Chain Security: Organisations must assess and manage risks across their suppliers and service providers.

These expectations align closely with best practices found in frameworks like ISO27001 — meaning that investing in recognised cybersecurity standards today can help meet NIS2-aligned demands tomorrow.

Even if your business is not legally required to comply with NIS2, aligning with its principles can provide major benefits:

• Maintain EU Market Access: Demonstrating cybersecurity maturity reassures EU customers and partners.

• Strengthen Business Resilience: NIS2 standards represent leading cybersecurity practices that protect your organisation from evolving threats.

• Prepare for Future UK Regulation: The UK government is considering its own updates to the UK NIS Regulations — and they may closely mirror the NIS2 approach.

Taking steps now — such as conducting a cybersecurity risk assessment, improving incident response plans, and considering certifications like ISO27001 or Cyber Essentials Plus — will put your business in a strong position.

The NIS2 Directive is reshaping expectations around cybersecurity across Europe — and smart UK businesses are already preparing. Directors and owners who lead on cybersecurity today will not only reduce risk but also open up new opportunities in an increasingly security-conscious market.

At [Your Company Name], we can help assess your current cybersecurity posture, identify gaps against NIS2 expectations, and develop a clear roadmap to strengthen your defences.

Get in touch with our team today to stay ahead of the curve and protect your business's future.