The European Union continues to raise the bar in cybersecurity, imposing increasingly demanding standards on member states and organizations. One of the key tools in this strategy is the NIS2 directive, which redefines the approach to securing IT systems across the EU. How does it affect companies, and why can a password manager play a crucial role in compliance with these regulations?
NIS2 – Europe’s Digital Security Framework
NIS2 directive is an expansion of the original NIS directive from 2016, which established baseline security requirements for networks and systems within the EU. The new version, announced in 2020 and enforced from January 2023, aims to strengthen the ability of key economic sectors to respond to cybersecurity incidents. As of October 17, 2024, all member states must comply with its requirements.
The directive mandates the implementation of appropriate measures to enhance security and legal compliance for operators of essential and important services. Additionally, NIS2 extends its scope from 7 to 15 sectors, increasing the range of regulated organizations.
Entities Covered by the NIS2 Directive:
- Energy
- Healthcare
- Transport
- Finance
- Water supply
- Digital infrastructure
- Public administration
- Digital service providers
- Postal services
- Waste management
- Space sector
- Food sector
- Industrial manufacturing
- Chemicals
- Scientific research
The NIS2 directive introduces stricter incident reporting rules, harsher penalties for non-compliance, and requires the adoption of advanced cybersecurity measures. For companies, this means adapting to more detailed and demanding regulations, necessitating investments in technology, processes, and human resources.
Why are new regulations necessary?
The COVID-19 pandemic and widespread shifts to remote work exposed serious shortcomings in the previous NIS directive. Inefficiencies, low awareness of cyber threats, and insufficient coordination were just some of the issues that became apparent, particularly during the conflict in Ukraine. The evolving geopolitical landscape and technological advancements have moved part of modern warfare into cyberspace. As a result, NIS2 directive emphasizes security consistency and faster responses to ever-evolving threats across the EU.
NIS2 requirements
The directive is based on four key pillars:
- Risk management
- Corporate responsibility
- Reporting obligations
- Business continuity
NIS2 directive requires organizations to implement fundamental security measures, including:
- Policies for risk analysis and IT system security
- Incident management
- Business continuity and crisis management
- Supply chain security
- Security in system acquisition, development, and maintenance
- Policies for assessing security measures’ effectiveness
- Basic digital hygiene practices and training
- Cryptography and encryption
- Human resource security, access control policies, and asset management
- Multi-factor authentication and secure communication
Source: ENISA
How can a Password Manager help meet NIS2 requirements?
Although a password manager may seem like an additional tool, it plays a crucial role in strengthening cyber resilience. It enables organizations to manage authentication data effectively, minimizing the risk of unauthorized access.
For business leaders, choosing the right tool such as perc.pass can be a strategic step toward NIS2 compliance. Enterprise grade solutions offer end-to-end encryption and zero-knowledge architecture, ensuring the highest level of data protection.
An enterprise-grade password manager allows you to:
- Control data access and restrict it to only necessary resources for specific individuals within the organization (Zero Trust strategy).
- Monitor and report user activity to prevent threats and take proactive measures.
- Enhance security with built-in two-factor authentication (2FA), ensuring that even if a password is leaked, the data remains protected.
- Promote cybersecurity hygiene by reducing unintentional employee actions that could lead to threats like phishing.
- Securely share passwords within teams, significantly improving efficiency in a dynamic organizational environment.
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How does perc.pass support security standards compliance?
While specific guidelines are lacking, cybersecurity industry standards such as ISO 27001 provide recognized best practices and solutions for securing organizational data. The perc.pass password manager significantly facilitates the implementation of this standard by establishing a strong foundation for compliance.
This is particularly relevant to organizational control areas, supported by key perc.pass functionalities:
- Password Generator – Users can create unique, fully random passwords in seconds, resistant to brute force attacks and other intrusions.
- Policy Management – Security administrators can enforce password complexity requirements, ensuring a uniform and secure standard across the enterprise.
- Monitoring Dashboard – Administrators receive system reports on password policy violations, breaches, password strength, and account statuses, enabling quick responses to threats.
- Leak Monitoring – Users can check if their passwords have been exposed in breaches and set up periodic monitoring for ongoing protection.
- User Management – The system allows assigning roles and permissions, ensuring that employees access only the areas essential for their work (Zero Trust strategy).
- Two-Factor Authentication (2FA) – An additional security layer ensures that access to the system requires a second authentication factor (e.g., email code, FIDO2 hardware key, OTP, or mobile app).
- Activity Logs – User actions are tracked and recorded, providing full visibility into password manager usage. Administrators can generate detailed activity reports at any time.
- Security Assurance – perc.pass utilizes strong symmetric and asymmetric cryptography and has successfully undergone independent penetration testing, confirming its resilience against attacks.
Complying with NIS2 directive is not just about meeting legal requirements—it’s about building a competitive advantage. Companies that invest in advanced tools and cybersecurity policies gain greater trust from partners and customers. Implementing an organizational password manager sends a clear message that cybersecurity is a top priority.
