Does your OT cybersecurity strategy include routine software and hardware updates? If not you could be risking a fine of €10 million or 2% of global annual turnover1.
Why? Simple. By October 2024, all EU member states must have passed the EU’s Revised Network and Information Security Directive (NIS2) into law. And the new directive specifies fines of either €10 million or 2% of global annual turnover for organizations in breach of its rules. One of those rules clearly states that organizations that fall under the directive must have cybersecurity policies that include:
“…cyber hygiene policies comprising of a common baseline set of practices, including software and hardware updates…”
More organizations than ever before are covered by the updated directive. This includes entirely new sectors such as telecoms, chemicals, wastewater, and food — all deemed either “essential” or “important” to the security and economic life of the EU. Article 7 of NIS2 further reinforces the fact that more organizations than ever will be impacted by the new directive:
“The national cybersecurity strategy shall include strengthening the cyber resilience and the cyber hygiene baseline of small and medium-sized enterprises, in particular those excluded from the scope of this Directive…”
Bottom line? Almost every organization that runs operational technology in the EU needs to start thinking now about getting NIS2 ready or risk the consequences of a breach.
Why are software updates a risk under NIS2?
Operational technology (OT) organizations, whether manufacturers or infrastructure providers, often have hundreds or even thousands of devices on site. A recent report by McKinsey estimated that some energy installations have as many as 30,000 connected devices2.
Many of those devices may also contain smart, connected components including variable frequency drives, industrial switches, programmable controllers, industrial PCs, and so on. All these components may also have their own software and hardware.
Even smaller installations, including ones with relatively small production environments, may have hundreds of OT devices, unmapped and unmanaged. And if even one of these devices is running out-of-date software and that leads to a data breach, operational outage, or other significant problem, that’s a potential breach of NIS2, and subsequential fine.