Who is affected by the new IT security guideline?

While vany entrepreneurs in the IT and startup-sector are struggling with the daily challengeschallenges of business developmentare preoccupied with thean important important deadline that could easily be overlooked easily overlooked: Themplementation of the NIS 2 Directive by October 17 2024 Surprisingly many companies havecompanies have important newinnovation on the screen, even thoughthe consequencesbe far-reaching can. These EU Directive on the Network andd Information security concernsmeets more uncompany as one initially assumeswould benefit thespecial also Innovative startups in the IT sector.The Directive aims toon off, the shlevel of protection for critical infrastructures andd digital servicesste in the EU clearly to increasetion. But not Only established companiescompanies have to adapt to the new requirementsorders. Also Young, up-and-coming startups should take the NIS 2 directive seriously and take earlytake early measures toto minimize compliance-minimize compliance risksminimize compliance risks and IT security improve. DFailure to comply with the requirements can severe finesfines as a result result.

Especially in the dynamic wworld of startups, in whichgility and rapidand rapid growth are are in the foregrounde, the dealing with regulatory requirementsrequirementst take a back seat.intergroundaten. But the NIS 2 Directive makes makes it clear that IT security is not an not an option, but a a necessity. Startups that the right the rightthe right decisions can not only reduce liability risks reduce liability risks, butbut also the trust of customers and investorsand investors.

What is NIS 2?

NIS 2 stands for “Network and Information Security” and is the further development of the first NIS Directive from 2016. The aim of this directive is to significantly increase the level of protection for critical infrastructures and digital services in the EU. In contrast to the previous version, NIS 2 significantly expands the scope of application and now also includes smaller companies, which could directly affect many start-ups.

Main contents of the NIS 2 Directive

The Directive defines the Focus on the followingcore aspects: The Introduction of Risk management measures in the cybsafety, Mobligations for Security incidents that Implementation of Concepts for Evaluation of the Effectiveness of IT security measures, the training of Employees in cyber security issues and the regular transfertesting and actualization of the Safety measures.

In concrete termsthis means that companies areare obligedd to take appropriate technicaland organizationalorganizational measures to minimize risks to the security of network andd information systems manage. This includes Local implementationperformance of Risiko analyzes, the implementation of security concepts andd the establishment of processes for detection, mreporting and reactingtion to security incidents.

Another importantaspect is the training andd sensitization of Employees. Z The aim is is to acquire sufficient knowledgeknowledge and skills to recognition andd assessment of risks and management practices in the in the area of cybersecurity mediate. Reg Regular reviewsand updates of theupdates of the measures takenmeasures are alsoalso necessary in order to with the constantly evolvingevolving threat landscape.keep pace with the constantly evolving threat landscape.

Thesecomprehensiverequirementsespecially for young and growingcompanies challengeas there are often limited resourcresources for the implementation availableehen. Nevertheless It is essential that the requirements of the NIS 2 Directive seriously seriously andd promptly take appropriatemeasures to strengthenIT security-security take action. One early engagementwith the requirements the requirements andd the use of fexpert supportsupport can help to minimize compliance-risks and minimizerisks and increase resilience againstagainst cyber attackssustainablytion.

Implementation deadline and consequences

The deadline for transposing the NIS 2 Directive into national law is October 17, 2024, from which date affected companies must comply with the requirements. Non-compliance could result in severe fines of up to 10 million euros or 2% of annual global turnover. These potential penalties underline the urgency of dealing with the requirements in good time.

Significance for IT start-ups

For many start-ups in the IT sector, NIS 2 represents a new challenge, but also an opportunity: the implementation of robust cyber security measures will become mandatory, which will increase resilience to cyber attacks in the long term. Companies that implement NIS 2 at an early stage can use this as a quality feature and a sign of trust towards customers and partners, which can give them a competitive advantage. By complying with NIS 2 standards, startups signal that they take the security of their systems and data seriously and are willing to invest in cyber security. This can strengthen the trust of customers and investors and improve the company’s reputation.

Even if a startup is not directly covered by the NIS 2 directive, business partners or customers who are subject to the directive can demand appropriate security standards. In an increasingly networked business world, it is important that smaller companies in the supply chain also take appropriate security measures. Start-ups that focus on NIS 2 compliance at an early stage can position themselves as reliable and trustworthy partners and improve their chances of working with larger companies.

In addition, fast-growing startups should consider the NIS 2 requirements at an early stage in order to be prepared if the threshold values are exceeded and to avoid any nasty surprises. By planning ahead and implementing security measures step by step, startups can avoid having to retrofit later under time pressure and at high cost. Addressing NIS 2 at an early stage enables security to be integrated into the company culture and processes from the outset and to scale with the growth of the company.Overall, the NIS 2 directive offers IT startups the opportunity to raise their cyber security to a high level, build trust with customers and partners and prepare for future growth. By being proactive, startups can overcome the challenges and reap the benefits of strong cybersecurity.

Recommendations for action

In order to meet the requirements of the NIS 2 Directive in good time, IT start-ups should consider the following steps: Firstly, assessing how affected the company is based on its size and area of activity, followed by a gap analysis to identify where action is needed. Developing and implementing an information security management system (ISMS) and training employees in cyber security issues are other important aspects. Regular reviews and updates of security measures must not be neglected.

The implementation of the NIS 2 Directive may initially appear to be an additional burden, but it offers the opportunity to improve IT security in the long term and position yourself as a trustworthy partner in the digital ecosystem. IT start-ups should use the time remaining until October 2024 to prepare thoroughly and implement the necessary measures. Dealing with NIS 2 at an early stage can not only minimize compliance risks, but also create a competitive advantage in an increasingly security-conscious market.

Author: Marian Härtel

Marian Härtel ist Rechtsanwalt und Fachanwalt für IT-Recht mit einer über 25-jährigen Erfahrung als Unternehmer und Berater in den Bereichen Games, E-Sport, Blockchain, SaaS und Künstliche Intelligenz. Seine Beratungsschwerpunkte umfassen neben dem IT-Recht insbesondere das Urheberrecht, Medienrecht sowie Wettbewerbsrecht. Er betreut schwerpunktmäßig Start-ups, Agenturen und Influencer, die er in strategischen Fragen, komplexen Vertragsangelegenheiten sowie bei Investitionsprojekten begleitet. Dabei zeichnet sich seine Beratung durch einen interdisziplinären Ansatz aus, der juristische Expertise und langjährige unternehmerische Erfahrung miteinander verbindet. Ziel seiner Tätigkeit ist stets, Mandanten praxisorientierte Lösungen anzubieten und rechtlich fundierte Unterstützung bei der Umsetzung innovativer Geschäftsmodelle zu gewährleisten.