What is NIS2?: Turn Compliance into a Competitive Advantage

The EU’s NIS2 Directive (Network and Information Systems 2) is more than a regulatory update, it's a shift in how digital security is viewed and valued. For tech vendors and service providers, it's also a rare opportunity: to not only meet compliance standards but to turn those efforts into a sales, trust, and brand advantage.

What Is NIS2 and Who Does It Apply To?

NIS2 expands the scope of the original NIS Directive. It now applies to both 'essential' and 'important' entities across a wide range of sectors, including digital services, cloud, energy, transport, finance, and health. If you are a technology vendor supplying services to these industries, you may fall under direct or indirect obligations.

What This Means for Corporate Security Audits

Security and compliance are converging. NIS2 is a critical reference point in security reviews, procurement decisions, and internal risk assessments. Companies are asking:

• Are our suppliers NIS2-aligned?
• Can they demonstrate proactive security management?
• Do they pose a risk to our compliance status?

What Procurement Teams Expect from Tech Vendors

Procurement has shifted from cost and performance alone to include cybersecurity assurance. To stay competitive, vendors must be ready to show:

• Clear security governance and accountability (CISO, DPO roles)
• Proven ability to detect and respond to incidents quickly
• Defined breach detection and notification policies
• Recent independent audits (ISO 27001, SOC 2)
• Strong supply chain risk management

How to Align with NIS2 and Avoid Lost Deals

The roadmap to readiness is clear:

1. Identify if you're in scope (essential or important entity)
2. Document your cybersecurity governance and assign responsibilities.
3. Prepare a compliance pack with key certifications and policies.
4. Proactively inform clients about how you're meeting NIS2 before they ask.

Transparency and preparedness win more than compliance, they win trust.

What Boards Need to Do

Under NIS2, boards and executive leadership are not exempt, they’re accountable.

Actions boards should take:

Cybersecurity is now a board-level business issue, not just an IT concern

Position NIS2 as a strategic advantage across sectors by focusing on its impact on trust, procurement eligibility, and long-term resilience.

In banking, NIS2 intersects with DORA, highlighting the importance of third-party vendor risk management. In insurance, it ties into enterprise risk frameworks and the reputational cost of digital vulnerabilities.

• Appoint a responsible executive for cybersecurity oversight
• Integrate NIS2 into enterprise risk frameworks
• Request regular updates on vendor compliance and supply chain resilience
• Ensure incident response plans are tested and communicated

This isn’t about technical controls, it’s about leadership, accountability, and reputation management.

The Opportunity: Turn Compliance into a Competitive Advantage

Companies that treat NIS2 as a business enabler, rather than a burden, gain more than just regulatory peace of mind:

• Shorter sales cycles
• Higher trust in procurement reviews
• Better positioning in regulated sectors
• Future resilience against evolving cybersecurity laws

When security matters to buyers, showing your compliant builds trust.

What to do next

NIS2 isn’t just about staying compliant, it’s a chance to show you’re serious about security.  Check where you stand, be clear with your clients, and use compliance as a way to build trust.

If you’d like help getting started, contact mary@upthink.works