The NIS2 Directive imposes rigorous cybersecurity requirements on manufacturing organizations throughout Europe. Failure to comply can result in substantial financial penalties and major operational setbacks. According to a recent European cybersecurity report, non-compliant organizations risk fines up to €10 million or 2% of their global annual turnover, whichever is higher. Cyber incidents can cause severe disruptions in manufacturing processes, leading to extended downtime and significant financial losses.

By implementing these measures, manufacturers can help to ensure seamless operations of their production lines and avoid steep fines while strengthening their cybersecurity defenses. In this NIS2 compliance guide, you’ll find practical steps to help your manufacturing organization adhere to NIS2 standards and protect critical operations.

Section 1: Understanding NIS2 Compliance for Manufacturers

The NIS2 Directive expands its scope to include manufacturing companies, requiring them to adopt rigorous cybersecurity practices and incident reporting procedures. NIS2 compliance requires implementing robust risk management and security measures, reporting significant incidents, enhancing cooperation and information sharing, ensuring supply chain security, providing employee training, and adhering to national supervision and penalties to protect critical infrastructure and services across the EU.

What Is NIS2?

The NIS2 Directive, formally known as the Directive on Security of Network and Information Systems (NIS2), is a legislative framework established by the European Union to strengthen cybersecurity across member states. This directive builds upon the original NIS Directive, expanding its scope and introducing more rigorous requirements. NIS2 aims to ensure a high common level of cybersecurity within the EU, particularly focusing on critical sectors such as energy, transportation, health, and manufacturing.

What NIS2 Means for Manufacturing Companies

For manufacturing organizations, NIS2 mandates the implementation of stringent cybersecurity measures to protect network and information systems that are essential for production and supply chain operations. Compliance with NIS2 involves several key obligations:

• Risk Management and Security Measures: Manufacturing companies must adopt comprehensive risk management practices and implement appropriate security measures. This includes technical and organizational measures to prevent, detect and respond to cyber threats. Advanced technologies like AI-driven threat detection and real-time monitoring systems are crucial for identifying and mitigating risks.
• Incident Reporting: Organizations are required to report significant cybersecurity incidents to the relevant national authorities promptly, ensuring a coordinated response to cyber incidents. This transparency is vital for maintaining operational integrity and trust with stakeholders.
• Supply Chain Security: NIS2 emphasizes the importance of securing the entire supply chain. Manufacturing companies must ensure that their suppliers and service providers also comply with cybersecurity standards. This holistic approach helps prevent vulnerabilities that could be exploited through third-party systems.
• Governance and Accountability: The directive mandates clear roles and responsibilities for cybersecurity within organizations. Senior management must be involved in cybersecurity governance, ensuring accountability and oversight. This top-down approach ensures that cybersecurity is a priority at all organizational levels.
• Continuous Improvement: Manufacturing companies must regularly review and update their cybersecurity measures in response to evolving threats and technological advancements. This proactive stance helps organizations stay ahead of potential threats and maintain robust security postures.

Non-compliance with these mandates can not only result in hefty fines; it can lead to significant operational disruptions, which can be equally – or more – costly. Cyber incidents can compromise production processes, disrupt supply chains and damage customer trust and safety.

The Good News

Complying with NIS2 also presents an opportunity for manufacturing companies to enhance their overall cybersecurity posture. By adhering to NIS2 standards, organizations can better protect against sophisticated cyber threats, ensure the continuity and reliability of production and supply chain operations, and demonstrate a commitment to cybersecurity to stakeholders and customers. Embracing these standards can lead to improved efficiency, reduced downtime, and a stronger market reputation.

Section 2: Key Challenges for Manufacturers

Navigating the complexities of NIS2 compliance presents significant challenges for manufacturing organizations. From resource constraints and legacy systems to the need for specialized cybersecurity measures and continuous risk assessments, ensuring compliance with NIS2 mandates requires a comprehensive and proactive approach. Let’s explore some specific obstacles faced by manufacturers as they work to maintain NIS2 regulatory compliance, along with potential solutions.

Complexity of Implementation 

Integrating comprehensive cybersecurity measures across diverse and often outdated industrial control systems (ICS) and operational technology (OT) is a complex process.

The fix: Ensure you have a full overview of your OT devices so you can manage the OT lifecycle better and minimize downtime.

Legacy Systems

Many manufacturers rely on outdated legacy systems that are difficult to secure and may not meet NIS2 standards. Upgrading or replacing these systems can be costly and complex.

The fix: A phased approach to upgrading legacy systems can help manufacturers meet NIS2 compliance. Prioritize upgrades for critical systems first, ensuring that the most vulnerable and essential components are secured promptly. Application programming interfaces (APIs) enable seamless integrations with modern cybersecurity solutions. You should also conduct regular audits to identify and fix any vulnerabilities and plan for upgrades.

Operational Disruptions

Managing potential disruptions to manufacturing processes during the implementation of new security measures.

The fix: To minimize operational disruptions during the implementation of new security measures, take a phased approach. Start with less critical systems and gradually move to more critical system, while pilot testing in controlled environments to identify and resolve issues before full-scale deployment. Scheduling upgrades during downtime or low-production periods can further reduce impact, and implementing new measures on parallel systems ensures a seamless transition. Clear communication with stakeholders throughout the process, as well as close collaboration with vendors and external experts, makes for smoother a smoother transition.

Evolving Threat Landscape

Cyber threats are continuously evolving, becoming more sophisticated and frequent. Manufacturers must keep pace with these changes to protect their operations and comply with NIS2 standards.

The fix: Invest in automated threat detection and response systems that can quickly identify and mitigate cyber threats in real-time. You can also explore partnerships with cybersecurity research institutions and participate in information-sharing initiatives to stay informed about the latest threats and mitigation strategies. Continuous monitoring and regular updates to security protocols and software will also help to address emerging threats.

Supply Chain Security

Manufacturers must ensure the cybersecurity of their entire supply chain, which involves rigorous vetting and monitoring of suppliers and service providers. This process can be resource-intensive and complex.

The fix: Develop and implement robust cybersecurity protocols for suppliers and service providers, and conduct regular audits and assessments of supply chain partners to identify and address potential vulnerabilities. Centralized cybersecurity frameworks that provide consistent security measures across all supply chain partners can simplify management and oversight.

Complex Regulatory Environment

The NIS2 Directive introduces comprehensive requirements that can be complex to interpret and implement. Navigating these regulations and ensuring full compliance can be an administrative burden for manufacturers.

The fix: Use compliance management software to help automate the tracking and reporting of regulatory requirements. Regular training sessions for staff on regulatory updates and compliance best practices are also essential to ensure that everyone in the organization understands their responsibilities. Finally, seek expert consultation with a regulatory compliance expert as needed.

A proactive approach to NIS2 compliance enhances your organization’s cybersecurity posture while protecting operations from cyber threats, strengthening the resilience and efficiency of manufacturing processes. 

Best Practices for Achieving NIS2 Compliance

The following best practices will help manufacturing companies satisfy NIS2 requirements and safeguard critical operations from cyber threats:

• Maintain an Accurate OT Inventory: Maintaining complete visibility across your OT estate is the first essential step to meeting NIS2 requirements and safeguarding operations from an attack. By maintaining an up-to-date inventory of OT assets, organizations can better manage and secure critical systems by detecting vulnerabilities  and implementing timely updates and patches.
• Regular Risk Assessments: Manufacturers should conduct thorough risk assessments to identify vulnerabilities and prioritize security measures. A proactive approach enables IT to address potential weaknesses before they can be exploited by cyber criminals.
• Network Segmentation: Protect sensitive data by segmenting networks and using firewalls and VPNs to isolate critical systems and data. In this way, manufacturers can limit the spread of malware and unauthorized access.
• Data Encryption: Encrypting data in transit and at rest helps to prevent unauthorized access to sensitive information and ensure that data remains unreadable and secure, even if it’s intercepted or accessed without authorization.
• Implement Access Controls: Enforce the principle of least privilege and use multi-factor authentication (MFA) to limit access to only those who need it. Adding these additional layers of security helps manufacturers reduce the risk of insider threats.
• Regular Software Updates and Patch Management: Keep software and systems updated with the latest security patches to prevent vulnerabilities from being exploited by attackers.
• Real-time Monitoring and Incident Response: Integrate Security Information and Event Management (SIEM) systems with IT asset management solutions like Lansweeper for real-time, continuous monitoring, which enables early detection of suspicious activities or threats. Be sure to maintain an updated incident response plan to ensure swift action to mitigate any incidents.

Implementing these best practices will help manufacturing organizations comply with NIS2 requirements while enhancing their overall cybersecurity posture, protecting critical operations and ensuring business continuity in the face of evolving cyber threats.

Lansweeper’s Comprehensive Solution for NIS2 Compliance

With Lansweeper, manufacturers gain full visibility into every connected device and their software, an essential first step in effective risk assessment and management. Lansweeper combines its deepscan engine with Credential-free Device Recognition (CDR) technology to automatically detect and recognize every asset in your network –  IT to OT and IoT – in minutes, without the need for credentials. It creates an always-accurate system of record for all of your IT assets, from the manufacturing floor to the back office, providing data insights and detailed reporting to help improve efficiency, save time and money, and minimize the impact of cyber attacks and vulnerabilities. 

Lansweeper integrates seamlessly with a wide array of solutions in your technology stack, including CMDB, ITSM, and cybersecurity tools. This capability allows you to pull Lansweeper data into your essential IT systems, eliminating data silos and reducing the operational overhead associated with searching for information and switching between tools.  Lansweeper’s robust reporting capabilities streamline NIS2 compliance audits, as well, saving significant time and resources.

Fagus-GreCon Streamlines IT Management with Lansweeper and TOPdesk

Fagus-GreCon, a global leader in industrial safety technology, faced challenges with device management and IT asset tracking. Their existing setup with Liongard provided historical asset data and change detection, but it was unable to sync with their Configuration Management Database (CMDB), creating data silos that caused inefficiencies and made compliance challenging. 

Through a seamless integration with Lansweeper and TOPdesk’s IT Service Management (ITSM) solution, they were able to pull real-time, accurate Lansweeper data into TOPdesk, ensuring CMDB accuracy while eliminating costly manual work. Now the team can collaborate effectively to respond to service requests, changes and incidents, creating a more robust and secure IT infrastructure.

Get Started with Lansweeper

Ensuring NIS2 compliance is critical for safeguarding manufacturing operations and maintaining stakeholder trust. By implementing Lansweeper’s IT Asset Discovery, Inventory, and Management software, your organization can enhance cybersecurity resilience and achieve seamless compliance with the NIS2 Directive.

Learn more about Lansweeper for the manufacturing industry or start a free trial today.