Navigating NIS2 Supply Chain Compliance: Essential Steps for SMBs

Understanding the NIS2 Directive and Its Supply Chain Implications

The NIS2 Directive (2022/2555) is a critical piece of EU legislation aimed at enhancing cybersecurity across member states. It builds on the original NIS Directive and introduces more stringent rules for both essential and important entities. One of the significant areas of focus under NIS2 is supply chain security, which has become increasingly vital in today's interconnected digital landscape.

What is NIS2?

The NIS2 Directive is designed to bolster the overall level of cybersecurity within the EU. It aims to ensure that companies in critical sectors take appropriate measures to protect their networks and information systems from cyber threats. According to Article 1, the directive lays down obligations for risk management and incident reporting, emphasizing the need for a coordinated approach to cybersecurity.

Key Changes in NIS2 Affecting Supply Chains

NIS2 introduces a range of new requirements that directly impact supply chain operations:

• Broader Scope: It covers more sectors and types of entities, including medium-sized enterprises.
• Risk Management: Companies must now adopt risk management practices that account for supply chain vulnerabilities (see Article 14).
• Incident Reporting: Organizations are required to report incidents affecting their supply chain within 24 hours (as stated in Article 15).
• Supplier Security: Companies must assess and mitigate risks posed by third-party suppliers (refer to Article 18).

The Importance of Supply Chain Security

The increasing complexity of supply chains means that organizations are often reliant on multiple vendors and partners for their operations. This interdependence creates multiple entry points for cyber threats. As highlighted in Recital 15, the security of supply chains is paramount to ensuring the resilience of essential services.

Immediate Action Steps for SMBs

To comply with NIS2 and secure your supply chain, consider the following actionable steps:

#### 1. Conduct a Supply Chain Risk Assessment

• Identify critical suppliers and partners in your supply chain.
• Evaluate their cybersecurity practices and vulnerabilities.
• Document findings and prioritize risks based on impact.

#### 2. Implement Risk Management Strategies

• Develop and enforce cybersecurity policies that include third-party risk management.
• Incorporate supply chain risk into your overall risk assessment framework (see Article 14).
• Consider contractual obligations that require vendors to meet specific cybersecurity standards.

#### 3. Strengthen Incident Response Plans

• Update your incident response plan to address supply chain incidents.
• Train employees on reporting procedures for third-party incidents.
• Ensure communication protocols are in place for swift action.

#### 4. Enhance Supplier Collaboration

• Foster open communication with suppliers about cybersecurity practices.
• Engage in regular security assessments and audits of your suppliers.
• Share threat intelligence and best practices with partners.

#### 5. Monitor Compliance Regularly

• Establish a compliance monitoring system to track adherence to NIS2 requirements.
• Schedule regular reviews and updates of your cybersecurity policies.

Key Compliance Checklist for NIS2 Supply Chain

• [ ] Conduct supply chain risk assessments.
• [ ] Identify and document critical suppliers.
• [ ] Update incident response plans.
• [ ] Establish communication protocols with suppliers.
• [ ] Regularly monitor and review compliance efforts.

How AI-Act.Click Can Help

With the complexities of NIS2 compliance, AI-Act.Click offers a streamlined compliance solution for SMBs. Our platform helps you manage your compliance obligations efficiently by providing tools for risk assessments, documentation, and continuous monitoring. By leveraging AI-Act.Click, you can ensure that your supply chain is secure and compliant with the latest regulations.

Frequently Asked Questions

#### What is the NIS2 Directive?

The NIS2 Directive is an EU regulation aimed at enhancing cybersecurity across member states, focusing on risk management and incident reporting for essential and important entities.

#### How does NIS2 affect supply chains?

NIS2 requires companies to assess and mitigate risks within their supply chains, enforce cybersecurity policies among suppliers, and report incidents affecting those supply chains promptly.

#### What penalties exist for non-compliance with NIS2?

Non-compliance can lead to significant fines and legal repercussions. The penalties vary based on the severity of the violation and can reach up to 10 million euros or 2% of a company’s global annual turnover, whichever is higher.

By taking proactive steps to align with NIS2 requirements, SMBs can significantly enhance their supply chain security and mitigate potential risks. Start your compliance journey today to protect your business and ensure resilience in the face of cyber threats.