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Caution: NIS-2 harbors a high risk of personal liability for managing directors

NIS-2, the EU's new binding cybersecurity directive, will be implemented from October 17, 2024. On this date, the member states are obliged to create and apply the necessary measures to comply with the directive. In Germany, this will be done via the Implementation and Cybersecurity Strengthening Act (NIS-2UmsuCG).

The new NIS-2 Directive has an extended scope of application and thus goes beyond the previous KRITIS sectors. It now includes 18 affected sectors, which are divided into “essential” and “important”.

The new requirements apply to all organizations, including companies and suppliers, that play a fundamental role in a functioning economy and society through the provision of their “essential” or “important” services.

As a result, this means that not only the security of your own company is relevant, but also that of your supply chain. The new cybersecurity requirements must also be ensured there. 

The new NIS-2 Directive also introduces personal liability for managers. They can be held directly responsible for breaches of compliance with the Directive (Art. 20 para. 2).

This refers in particular to training courses, which are binding for both managers and employees.

What happens if you do not comply with this? Then it can be quite expensive! Essential facilities can be fined up to €10 million or 2% of annual global turnover, important facilities up to €7 million or 1% of global turnover.

In addition to these financial penalties, the management may also be prohibited from carrying out its activities.

What does this mean for you? If your company is affected by NIS-2, you will be subject to the “approval, monitoring and training obligation for directors of particularly important and significant entities” under the upcoming Section 38 BSIG-E.

Therefore, please clarify whether your company is affected by NIS-2 directly or as part of the supply chain. Find out about training courses for managing directors and employees in order to meet the requirements. The management must also be directly involved in the cyber security measures. Mr. Halbach will be happy to answer any questions you may have.

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