NIS2 Directive: Enhancing Security for Enterprise and Industrial ‘Internet of Things’

Introduction

In today's ever-evolving digital landscape, the Internet of Things (IoT) has revolutionised how industries operate. IoT brings incredible benefits, but it also introduces complex cybersecurity challenges. Cyber attacks against IoT technologies costs £1bn+ a year to UK companies alone. To address some of these concerns, the European Union has unveiled the NIS2 Directive—an update to the existing NIS Directive, which aims to enhance the security of critical infrastructure and digital services. As we delve into the NIS2 Directive, we'll also investigate how the implementation of endpoint threat detection, augmented by behavioral-based anomaly detection using AI, can assist businesses in strengthening their cybersecurity defenses.

Understanding the NIS2 Directive

The NIS2 Directive, officially known as the Network and Information Systems 2 Directive, is a significant step forward in the EU's commitment to bolster cybersecurity. It acknowledges the broader spectrum of digital technologies that businesses rely on today, extending its scope to encompass not only traditional computers and servers but also emerging technologies, including IoT. Here's a closer look at how the NIS2 Directive impacts businesses and why it's crucial to be prepared.

Expanded Scope and Stricter Requirements

Under the NIS2 Directive, businesses will face stricter security requirements, emphasising the need for robust security measures, comprehensive risk management, and rapid incident response. The directive recognises that modern enterprises rely on a wide array of interconnected technologies, including IoT devices, cloud services, and more. This expanded scope underscores the importance of safeguarding not just traditional IT assets but also the rapidly growing ecosystem of digital services and devices.

What will the directive mean for me?

Extended Scope: The NIS2 Directive expands its scope to cover a wider range of digital services and technologies, including cloud services, online marketplaces, and IoT devices used in business operations. This means more businesses will be subject to the directive's requirements.

Risk Management: Businesses will be required to implement robust risk management measures. This includes identifying and assessing risks to their network and information systems, and implementing appropriate security measures to mitigate these risks.

Security Measures: The directive emphasises the need for businesses to establish and maintain appropriate security measures. This includes implementing security policies, technical and organisational measures, and incident response procedures to protect their critical infrastructure and digital services.

Incident Reporting: Businesses must promptly report any significant incidents affecting the security of their network and information systems to the relevant authorities. Timely incident reporting is essential for a coordinated response to cyber threats.

Cooperation and Information Sharing: The directive promotes cooperation and information sharing among businesses, sectorial Computer Security Incident Response Teams (CSIRTs), and governmental authorities. Businesses will need to engage in threat intelligence sharing and collaborate with other stakeholders to strengthen collective cybersecurity efforts.

Security Audits and Testing: Businesses may be subject to security audits and testing to assess their compliance with the directive's requirements. They must be prepared for such assessments.

Compliance with Technical Standards: The directive encourages businesses to comply with recognised technical standards and best practices for cybersecurity. Following established standards can help ensure compliance.

Focus on IoT Security: While the directive is not solely focused on IoT devices, it highlights the significance of securing IoT technologies used in business and industrial operations. Organisations must prioritise IoT security to meet the directive's requirements.

Penalties for Non-Compliance: Businesses that fail to comply with the directive's requirements may face penalties and fines, as determined by the respective EU member state's regulatory authority.

The Role of Endpoint Threat Detection

Although a new approach from qomodo, endpoint threat detection plays a pivotal role in meeting the security demands of the NIS2 Directive. We all know that IoT devices are limited in terms of memory and storage, which is where qomodo's white label micro software agent comes in. We are working with device manufacturers and system integrators helping them to detect and mitigate cybersecurity threats using our software agent and web interface. Here's how it contributes to the overall security landscape:

  • AI-driven Threat Detection: Our AI technology allows qomodo to identify deviations in various aspects of device operations. This includes recognising changes in processes being run, artifacts lying dormant on the machine, and other anomalies, facilitating the rapid detection of potential threats.

  • Real-time Monitoring: Endpoint threat detection continuously monitors IoT devices, providing real-time threat intelligence. This allows for swift responses to potential security incidents.

  • Customised Protection: Solutions like qomodo's micro software agent are adaptable and scalable, ensuring they meet the unique security needs of each device and industry.

  • External Attack Observation Intelligence: We gather valuable threat intelligence data on attacker Tactics, Techniques, and Procedures (TTPs) targeting industrial and enterprise IoT technologies. This data not only enhances our ability to identify and respond to evolving cyber threats but also strengthens the learning of our AI model.

  • Identifying Vulnerability Exposures: Proactively identify vulnerability exposures within the device, helping businesses address potential weaknesses before they can be exploited by malicious actors, reducing the overall risk.

Securing IoT Devices and Beyond

While the NIS2 Directive isn't exclusive to IoT, it emphasises the importance of securing these devices, recognising their significance in today's business landscape. IoT devices are integral components in most industries today, and their security vulnerabilities can have far-reaching consequences. The directive directly urges businesses to prioritise the security of IoT technologies, highlighting the necessity of robust cybersecurity solutions in this context.

Conclusion

As the NIS2 Directive comes into play, businesses must adapt to the evolving cybersecurity landscape. Compliance with this directive is not only essential for ensuring the resilience and security of critical infrastructure and digital services but also for protecting the expanding ecosystem of interconnected devices and technologies, including IoT. Endpoint threat detection, backed with AI capabilities, is a key ally in this endeavour, offering businesses the means to address security challenges that their customers want and require, and meet the stringent requirements of the directive. By embracing these technologies, companies can fortify their cybersecurity defences and navigate the ever-changing digital landscape with confidence.

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