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Penetration Testing as a Cornerstone of NIS2 Compliance

Why NIS2 Compliance Matters for Your Company?

Critical infrastructure is the primary target of cyberattacks in Europe, followed by government institutions and corporate organizations. If you are in critical infrastructure or supply chain operations, cyber resilience is no longer optional. The new NIS2 Directive is aimed at enhancing the overall resilience of essential services and critical infrastructure across EU member states. It expands the scope of existing regulations, making compliance a necessity for not only large corporations but also smaller suppliers who support critical infrastructure.

As of today, all the member states have already transposed the NIS2 Directive into national law. If you are unsure whether your company is compliant, there will be no better time to act than right now.

160K+ Estimated companies affected by NIS2

What sectors are now impacted?

The NIS2 Directive EU’s official list:

Essential Entities:

  • Energy
  • Transport
  • Finance
  • Public Administration
  • Health
  • Space
  • Water supply (drinking & wastewater)
  • Digital Infrastructure (e.g. cloud computing service providers and ICT management)

Important Entities:

  • Postal Services
  • Waste Management
  • Chemicals
  • Research
  • Foods
  • Manufacturing
  • e.g. medical devices and other equipment
  • Digital Providers
  • e.g. social networks, search engines, online marketplaces

Key Challenges in Meeting NIS2 Compliance

  • It significantly expands the scope of its predecessor, now encompassing a wider range of sectors, including healthcare, energy, financial services, public administration, and even key supply chain operators.
  • Supply chains are often the weak link in an organization’s security. NIS2 requires organizations to consider and mitigate risks from third-party suppliers – a challenge best addressed by proactive security testing.
  • This directive mandates stricter incident reporting, requiring organizations to notify authorities of major security incidents within 24 hours and submit a full report within 72 hours, emphasizing timely response to minimize damage.
  • NIS2 also requires organizations to implement robust risk management measures, covering areas such as incident handling, supply chain security, and vulnerability management. 
  • Non-compliance can lead to severe regulatory fines and legal liabilities for company executives.

In short, NIS2 is designed to push organizations towards a culture of proactive cybersecurity, ensuring they have the necessary safeguards in place to protect against a growing tide of sophisticated cyber threats.

The question isn’t whether NIS2 affects your organization; it’s whether your current cybersecurity practices are enough to meet these requirements.

  • Questions to Consider:
    • Are current penetration testing practices enough to meet NIS2 requirements?
    • Can your team quickly respond to incidents when vulnerabilities are identified?
    • Are you working with experienced professionals who understand the complexity of identifying and mitigating vulnerabilities?
  • Opportunities:
    • Use NIS2 as a catalyst to strengthen your organization’s cybersecurity posture. FS Group’s expertise helps transform compliance from a regulatory burden into a competitive advantage, showcasing your organization’s maturity in cybersecurity.

Can Your Organization Afford the Consequences of Non-Compliance? 

  • Substantial Fines: Essential entities may face fines up to €10 million or 2% of their global annual turnover, whichever is higher. Important entities could incur fines up to €7 million or 1.4% of their global annual turnover, whichever is higher. (NIS 2 Directive)
  • Legal Liabilities: Senior management may be held personally accountable for cybersecurity failures, potentially leading to legal actions and personal fines.
  • Reputational Damage: Public disclosure of non-compliance can erode stakeholder trust and damage the organization’s reputation, affecting customer confidence and market position.
  • Increased Regulatory Check-Ups: Non-compliant organizations may undergo more frequent audits and assessments, diverting resources and potentially hindering operations.
  • Operational Disruptions: Inadequate cybersecurity measures increase the risk of cyberattacks, leading to service interruptions, data breaches, and financial losses.
  • Exclusion from Contracts: Non-compliance may result in exclusion from tenders and loss of business opportunities, as many contracts require adherence to NIS2 standards.
  • Potential Market Exit: In severe cases, authorities may order non-compliant organizations to cease operations, posing an existential threat to the business.

The Role of Penetration Testing in NIS2 Compliance

Penetration testing is a cornerstone of NIS2 compliance, serving as a proactive measure to protect your systems:

  • Identification of Vulnerabilities: Penetration testing is crucial for identifying vulnerabilities in your IT infrastructure, networks, and applications before attackers exploit them. FS Group offers Compliance Pentest and Vulnerability Assessment services and has over a decade of experience in assisting organizations in meeting regulatory requirements and proactively identifying vulnerabilities.
  • Evaluating Security Controls: Regular penetration testing helps ensure that existing security controls, like firewalls and access controls, are effective against evolving threats.
  • Regular Testing as a Proactive Defense: NIS2 mandates proactive cyber defense. By conducting regular penetration testing, organizations can align their security measures with this proactive stance, continuously assessing and improving their cybersecurity posture.
  • Testing in Real-World Conditions: Unlike traditional vulnerability assessments, penetration testing simulates real-world attack scenarios, uncovering vulnerabilities that attackers could exploit, and ensuring alignment with NIS2 requirements.
  • Focus on Critical Infrastructure: Cross-border critical infrastructure, such as healthcare, energy, and finance, requires coordinated penetration testing to defend against interdependent vulnerabilities.
  • Risk Management Insights: Penetration tests provide actionable insights that can refine risk management strategies, ensuring the best return on security investment.

Case Study: A pre-launch pentest conducted by FS Group prevented a major bank from financial losses caused by a high-severity flaw.

A leading commercial bank in Kazakhstan, serving millions, faced the challenge of securing a new web application with complex business logic. To tackle this, they reached out to FS Group’s experts, experienced in penetration testing and vulnerability assessment for companies operating in the finance sector.

The Challenge:

Operating in a heavily regulated financial sector, the bank had to ensure:

  • Strict regulatory compliance
  • Protection against evolving cyber threats
  • Security for a complex securities trading platform
  • Safeguarding sensitive data
  • Identification of vulnerabilities specific to financial applications

The Solution:

FS Group utilized the Gray Box penetration testing method, conducting the following steps:

  • Information gathering
  • Clarifying testing goals
  • Manual and automated checks
  • Vulnerability exploitation analysis
  • Detailed reporting with mitigation recommendations

Results:

FS Group’s expert team employed methodologies from WASC and OWASP and proprietary tools and discovered 1 high-severity and 3 medium-severity vulnerabilities, preventing potential financial losses in the tens of millions. The bank avoided reputational damage and regulatory penalties, receiving a comprehensive report that summarized findings and provided actionable recommendations. The bank decided to extend the partnership and is now collaborating with FS Group on other projects.

“FS Group was professional and thorough. Their detailed and easy-to-understand report, along with prompt clarifications, helped us quickly improve the application’s security to ensure a smooth launch and avoid operational disruptions.”

© CISO, client’s cybersecurity department.

Best Practices for Penetration Testing under NIS2

  • Regular Testing: Conduct penetration tests at least annually or whenever significant changes are made to the IT infrastructure. This ensures ongoing compliance with NIS2’s requirement for continuous risk assessment and management.
  • Variety of Testing Techniques: Employ a range of testing methods, including network scanning, application testing, and social engineering. This comprehensive approach helps identify vulnerabilities across all aspects of an organization’s IT ecosystem.
  • Engage Experienced Testers: Working with skilled penetration testers as well as hiring a reputable pen testing company that has the expertise to identify complex vulnerabilities and provide actionable recommendations for improving security.
  • Act on Results: Use the findings from penetration tests to inform and update your organization’s cybersecurity strategy, ensuring continuous improvement in line with NIS2 requirements.

FS Group’s Approach to Penetration Testing

FS Group provides comprehensive penetration testing services, guiding organizations from the initial assessment through remediation:

  • Expertise in Critical Sectors: FS Group has extensive experience working in sectors covered by NIS2, including healthcare, energy, and finance, all of which have specific regulatory and industry requirements.
  • Tailored Testing for Compliance: Our services are tailored to match industry-specific needs, ensuring complete alignment with NIS2 requirements.

Achieve compliance and secure sensitive cardholder data with FS Group’s Compliance Pentest service

To help you proactively prevent data theft, avoid regulatory fines, and protect your reputation, we provide you with:

  • Vulnerability Audit: Identify security gaps in your infrastructure and receive actionable remediation steps.
  • Penetration Testing: Simulate real cyberattacks to uncover exploitable weaknesses and improve defenses.
  • Phishing Emulation: Test employee readiness against phishing attacks and improve response strategies.
  • Consulting: Expert guidance to ensure all security measures are in place.

Businesses That Benefit the Most from FS Group’s Compliance Pentest:

  • E-commerce platforms
  • Travel agencies
  • Retail stores
  • Healthcare providers
  • Financial institutions
  • Payment processors
  • Hospitality businesses
  • Data centers

Is your organization among these sectors? Take the first step to compliance with a free consultation to assess your needs, or subscribe to regular audits to maintain compliance and stay secure. Protect your business now as delaying risks to your customers’ data and your brand reputation. Reach out to FS Group now.

NIS2 Compliance Requires More Than Just Penetration Testing

  • Threat Intelligence: Threat intelligence is a critical component of compliance. FS Group’s niche expertise in Threat Intelligence is key in helping organizations proactively identify risks and make informed decisions to enhance security.
  • Platform Blue: FS Group’s Platform Blue provides ongoing monitoring, vulnerability assessments, and threat intelligence, serving as a comprehensive solution for NIS2 compliance. It’s a one-stop platform for staying ahead of threats.
  • Vulnerability Assessment: Penetration testing should be complemented with regular vulnerability assessments to ensure all known vulnerabilities are identified and mitigated. FS Group offers comprehensive vulnerability assessment services to help maintain a resilient security posture.

Moving Beyond Compliance to True Cyber Resilience

Achieving NIS2 compliance is a critical milestone for businesses that want to maintain their reputation, avoid regulatory fines, and keep their company and customer data secure. True cyber resilience requires continuously improving defenses, regular testing, and proactive risk management. By integrating penetration testing into your cybersecurity strategy, you’re not only complying with regulations but investing in the long-term resilience of your organization.

With FS Group, you can build a tailored penetration testing plan that aligns with NIS2 and keeps your organization ahead of cyber threats. Ready to get started? Contact FS Group today to learn how we can help your organization achieve compliance and enhance its security strategy against emerging threats.

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