The NIS2 directive, a framework for cyber resilience, is set to impact supply chain security across the European Union. While not directly applicable to UK organizations, its implications may extend to those with EU market ties or supply chain members under compliance requirements.
Understanding the Threat Landscape in Supply Chains
The rise in supply chain attacks is driven by several factors. As organizations increasingly rely on third-party suppliers, their attack surface expands, becoming more complex. Simultaneously, adversaries are constantly exploring new ways to infiltrate valuable businesses.
Third-party suppliers are often perceived as easier targets that can provide access to larger organizations they collaborate with, often without triggering alarms. As companies have improved their security measures, attackers see supply chain attacks as an innovative way to operate undetected.
In 2023, intrusion actors consistently tried to exploit trusted relationships for initial access to organizations across various sectors and regions. This attack type leverages vendor-client relationships to deploy malicious tools using two primary techniques: compromising the software supply chain using trusted software and leveraging access to IT service vendors.
Implications of NIS2 for UK Organizations
The NIS2 directive introduces new risk management measures and reporting requirements for organizations, necessitating a higher level of security across their network and information systems. The legislation applies to EU-based organizations operating across 18 key economic sectors.
While not directly affected by the directive, UK organizations often have strong ties to EU partners within their supply chains. Consequently, they may be impacted by NIS2 in several ways:
- EU partners may require adherence to NIS2 standards or similar as a collaboration condition, necessitating UK businesses to align with the directive’s cybersecurity protocols.
- Non-compliance with NIS2 standards by EU partners increases cyber risk exposure for UK businesses within shared supply chains.
- EU partners’ non-compliance with NIS2 standards could potentially disrupt supply chains, impacting UK businesses reliant on cross-border trade.
- UK businesses failing to align with NIS2 standards or secure their own supply chains will be at a competitive disadvantage within EU markets.
The Need for Continued UK Innovation
While the NIS2 rules affect organizations classified as core infrastructure operating in the EU, UK businesses should follow suit to avoid being the weakest link in the distribution chain. NIS2 is not only about compliance; it’s about inspiring all businesses to align themselves with the best possible cybersecurity standards.
This is crucial for the cyber safety of supply chains, especially as more businesses move critical applications and data to the cloud. These resources will only come under greater attack by threat actors that continue to refine tactics and tradecraft to exploit vulnerabilities and misconfigurations within them.
A comprehensive approach to security is required to combat these adversaries, enabling organizations to maintain compliance, visibility, and enforcement, regardless of where their data and applications reside.
