As a UK-based Managed Service Provider (MSP), we work closely with businesses to help them navigate the complex world of cybersecurity regulations. The NIS2 Directive and the UK’s NIS Regulations (2018) are two significant frameworks that impact businesses’ cybersecurity practices. While both aim to improve cybersecurity, they apply to different regions and come with distinct requirements. So, how do these regulations compare, and what does this mean for UK businesses?
What is the NIS2 Directive?
The NIS2 Directive is the European Union’s updated framework for enhancing the cybersecurity resilience of its members. It was introduced to replace the original NIS Directive (2016), which laid the foundation for securing critical infrastructure across EU member states. The NIS2 Directive came into effect on January 16, 2023, and EU member states were required to implement it into national law by October 17, 2024.
The directive extends the scope of the original regulation to cover more industries and imposes stricter cybersecurity requirements on businesses, especially those in critical sectors like energy, transport, health, and digital infrastructure. The goal is to protect vital networks and services from cyber threats, ensuring that businesses within the EU have the necessary resilience to handle incidents and comply with reporting requirements.
What are the UK’s NIS Regulations (2018)?
In the UK, the NIS Regulations (2018) apply to essential services and digital service providers. These regulations were introduced following the EU’s NIS Directive to ensure that UK businesses operating in critical sectors maintain a high level of cybersecurity. The regulations cover essential services such as energy, transport, healthcare, and water, as well as digital services like cloud computing, online marketplaces, and search engines.
The NIS Regulations (2018) are enforced by the UK’s National Cyber Security Centre (NCSC) and set out requirements for cybersecurity risk management, incident reporting, and resilience. Although these regulations are similar to the EU’s original NIS Directive, there are notable differences because they were designed post-Brexit to meet the UK’s unique cybersecurity needs.
What is the UK’s Cybersecurity Strategy?
The UK’s National Cybersecurity Strategy, first introduced in 2016 and updated regularly, provides a broader and more long-term vision for improving the UK’s cybersecurity posture. While not a direct regulation like NIS2 or the NIS Regulations, the Cybersecurity Strategy outlines the UK government’s objectives for creating a more secure cyber environment.
The strategy covers everything from national security and defending against cyberattacks to boosting cybersecurity capabilities within businesses and public services. It encourages collaboration between public and private sectors to strengthen cyber resilience and includes initiatives to improve workforce skills, technology, and incident response.
Key Comparisons Between NIS2, the UK’s NIS Regulations, and the Cybersecurity Strategy
1. Scope of Coverage
- NIS2 covers a broader range of sectors compared to the UK’s NIS Regulations (2018). While both address essential services and digital services, NIS2 expands the scope to include industries such as food production, postal services, and waste management.
- The UK’s NIS Regulations focus primarily on essential services (like healthcare, energy, and transport) and digital services within the UK, with additional rules around reporting and risk management for digital providers.
- The Cybersecurity Strategy takes a more overarching approach, encouraging cybersecurity across all sectors, not just essential services, and focusing on national cybersecurity infrastructure and public-private collaboration.
2. Reporting Requirements
- Under NIS2, businesses must report significant cyber incidents to national authorities within 24 hours and provide a full report within one month. The focus is on ensuring that businesses communicate with authorities rapidly in the event of an incident to minimize damage.
- The UK’s NIS Regulations also require timely incident reporting to the NCSC (within 72 hours), but the penalties and scope of enforcement differ compared to the EU framework.
- The Cybersecurity Strategy sets broader objectives for improving incident reporting across the UK’s public and private sectors but does not enforce specific timelines like NIS2 or NIS Regulations.
3. Penalties for Non-Compliance
- NIS2 imposes heavy penalties for non-compliance, including fines of up to €10 million or 2% of global turnover for essential services and up to €7 million or 1.4% of global turnover for important entities.
- The UK’s NIS Regulations (2018) also introduce fines for non-compliance, but they are typically lower than the NIS2 penalties. However, UK authorities are increasingly cracking down on non-compliant businesses.
- The Cybersecurity Strategy does not set specific fines, but it does influence other regulations that could lead to penalties for businesses failing to improve their cybersecurity posture.
4. Cybersecurity Frameworks
- Both NIS2 and the UK’s NIS Regulations require businesses to adopt risk management frameworks (such as ISO 27001 or NIST) to protect critical infrastructure and data.
- The Cybersecurity Strategy provides high-level guidance on strengthening the UK’s cybersecurity capabilities but doesn’t mandate specific frameworks for individual businesses.
How UK Businesses Should Navigate Both Sets of Regulations
For UK-based businesses, the key takeaway is the need to comply with both sets of regulations if they interact with the EU. Even if you’re not operating within the EU, businesses that offer services to EU customers or partner with EU companies should ensure compliance with the NIS2 Directive. Similarly, businesses within the UK should continue to adhere to the UK’s NIS Regulations (2018) and follow best practices outlined in the Cybersecurity Strategy.
To ensure compliance, UK businesses should:
- Assess their cyber risks and ensure that all systems meet the NIS2 and NIS Regulations requirements.
- Review incident reporting procedures and be prepared to report any cyber incidents within the required timelines.
- Engage with expert MSPs (like us!) to ensure that cybersecurity frameworks, monitoring, and reporting systems are in place.
Final Thoughts: Stay Ahead of Compliance
As a UK MSP, we understand the importance of staying ahead of regulatory changes. Whether you’re dealing with the NIS Regulations or the NIS2 Directive, it’s crucial to ensure that your business is prepared for both sets of regulations. Compliance may be complex, but with the right guidance and cybersecurity practices, you can stay protected and avoid costly penalties.
If you need help understanding how these regulations impact your business and what steps to take next, feel free to get in touch with us today. We’re here to help you stay compliant and secure in an increasingly complex cybersecurity landscape.
