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Service Team

BRIEFING: NIS2 Directive: Strengthening Cybersecurity Across the EU

Updated: Dec 17



NIS2 Directive includes explicit provisions regarding the obligations of entities concerning their third-party service providers and outsourcing providers. This reflects the growing recognition that cybersecurity risks often originate in supply chains and outsourced services. Here are the key aspects:


1. Supply Chain Security Requirements

NIS2 mandates that organizations falling under its scope:

  • Assess Supply Chain Risks: Entities must identify and mitigate cybersecurity risks arising from their relationships with third-party service providers and outsourced partners.

  • Ensure Security in Procurement and Contracts: When engaging service providers, organizations must incorporate cybersecurity requirements into contracts to ensure compliance with NIS2 standards.


2. Responsibility for Outsourced Services

The directive places the ultimate responsibility for cybersecurity on the contracting entity (the entity subject to NIS2), even when services are outsourced. This includes:

  • Regularly monitoring the performance and security practices of third-party providers.

  • Ensuring that third-party providers implement adequate technical and organizational measures to manage risks.

  • Establishing clear terms for incident response, including notification obligations in case of breaches.


3. Specific Obligations for Critical Sectors

For essential and important entities (e.g., healthcare, energy, digital infrastructure), NIS2 emphasizes:

  • Enhanced scrutiny of vendors involved in critical systems.

  • Verification that service providers adhere to the same security standards as the contracting entity.

  • Ensuring providers participate in coordinated response efforts during cyber incidents.


4. Notification Obligations for Third Parties

While the primary obligation for incident reporting lies with the entity subject to NIS2, there’s an expectation that:

  • Outsourcing providers inform the entity promptly about incidents that could impact the entity's operations or data.

  • Entities ensure such obligations are detailed in their service agreements.


5. Oversight and Accountability

Supervisory authorities under NIS2 may assess the extent to which entities manage their third-party risks. This may involve:

  • Reviewing contracts with service providers.

  • Evaluating the adequacy of supply chain risk assessments.


Implications for Organizations


To comply with NIS2's supply chain-related provisions, entities must:

  • Review Existing Contracts: Ensure they include specific clauses for cybersecurity standards and incident response.

  • Vet Vendors: Conduct due diligence on the cybersecurity practices of third-party providers.

  • Monitor Compliance: Establish regular audit and monitoring processes for outsourced services.


How can Trudexia help?


Trudexia helps entities with NIS2 compliance and third-party due diligence by providing comprehensive tools to assess and manage cybersecurity risks associated with third-party vendors, supply chains, and outsourcing. The platform evaluates vendor security practices, continuously monitors supply chain risks, and ensures contractual alignment with cybersecurity requirements. Additionally, Trudexia supports incident response coordination, ensuring that third-party reporting obligations are fulfilled, thereby streamlining compliance processes and strengthening overall supply chain resilience. This approach empowers organizations to efficiently address the NIS2 directive's rigorous standards and secure their operational ecosystems.

 

 


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