NIS 2 Directive and Critical Third Parties: A Must-Read Guide for Companies

Identifying and evaluating critical third parties is becoming a key challenge with the NIS 2 Directive, which is reshaping strategic partner governance across Europe. This regulatory shift, affecting approximately 300,000 institutions, redefines collaborative evaluation requirements for third parties in critical sectors such as construction, industry, retail, and the public sector.

At the heart of this transformation lies more than just internal protection—it’s about establishing collaborative governance of critical ecosystems. The directive sets a unified framework for managing third-party risks, with differentiated obligations based on sector criticality. Affected entities must now deploy a structured methodology for qualifying strategic partners, including enhanced technical and organizational measures.

For highly critical sectors like energy, transport, or healthcare, the requirements are particularly stringent, calling for increased third-party monitoring and proactive risk management. This aligns with the European aim of harmonization, with sanctions reaching EUR 10 million or 2% of global turnover for non-compliance.

Understanding the NIS 2 Directive and Its Scope

The NIS 2 Directive deeply transforms third-party governance in Europe, replacing the “Essential Service Operator” (OSE) status with two new categories: essential entities and important entities. This major shift significantly expands the range of organizations impacted, from 19 to 35 sectors.

Eligibility Criteria

• Over 50 employees or turnover above EUR 10 million
• Operating in a regulated sector
• Potential impact on critical service continuity

Regulated Sectors and Criticality Levels

The directive distinguishes two levels of criticality that determine collaborative governance obligations:

Highly Critical Sectors:

• Energy (electricity, gas, oil)
• Transport (air, rail, maritime)
• Banking and financial markets
• Healthcare and medical infrastructure
• Drinking water and wastewater
• Digital infrastructure and ICT services
• Public administration

Other Critical Sectors:

• Postal and logistics services
• Waste management
• Chemical production
• Food industry
• Manufacturing of critical devices
• Digital providers
• Research

This categorization reflects the EU’s goal of reinforcing operational resilience across entire sectors. In the public sector, for example, local governments are now included. In industry, ICPE sites and critical installations are under particular scrutiny.

Sector-Specific Requirements

Obligations vary based on the sector’s criticality and the organization’s size. Essential entities in highly critical sectors face stricter requirements, with fines up to EUR 10 million or 2% of global turnover. For important entities, the cap is EUR 7 million. This new regulatory structure sets a unified framework for collaborative evaluation of critical third parties, while considering sector-specific implementation.

Methodology for Identifying Critical Third Parties

Collaborative third-party governance under NIS 2 calls for a structured methodology to identify and assess critical partners. This systematic approach helps anticipate vulnerabilities and strengthen ecosystem robustness.

Partnership Evaluation

Critical third-party identification relies on three pillars:

Operational Criticality

• Direct impact on essential service continuity
• Access to sensitive data or critical systems
• Role in the sectoral value chain

Cybersecurity Maturity

• Dedicated security team
• ISO 27001/27701 certifications
• Ongoing staff training

Protection Mechanisms

• Security infrastructure and access controls
• Sensitive data protection
• Securing cloud environments

Dependency Analysis

Evaluation should also include a precise mapping of interdependencies, especially crucial in high-priority sectors:

Public Sector

• Evaluation of digital service providers
• Subcontractor analysis in public procurement
• Mapping of inter-administration dependencies

Construction/BTP

• Multi-level subcontractor management
• Assessment of critical material suppliers
• Analysis of maintenance providers

Industry

• Mapping of ICPE suppliers (Installations Classified for Environmental Protection)
• Assessment of industrial maintenance providers
• Supply chain dependency analysis

This methodology must also include ongoing monitoring of critical partners, with regular reassessments based on measurable performance indicators. To ensure effectiveness, a collaborative evaluation system should include:

• Intelligent document workflows
• Automated evaluation processes
• Real-time multi-source monitoring

This structured methodology helps meet NIS 2 requirements while optimizing third-party risk management within a global performance logic.

Regulatory Compliance: Corporate Obligations

Collaborative third-party governance under NIS 2 imposes clear obligations to enhance operational resilience. Companies must implement three levels of measures:

Technical Measures

• Access control and multi-factor authentication
• Encryption of sensitive data
• Securing emergency communications
• Protection of critical infrastructure

Organizational Measures

• Appointment of a cybersecurity officer
• Continuous staff training
• Regular evaluation of third-party partners
• Documentation of compliance processes

Notification Obligations

• Report major incidents within 24 hours
• Detailed report within 72 hours
• Full incident report within one month

In the public sector, this translates into heightened attention to public procurement compliance and subcontractor evaluation.

Business Implications

Data Protection and Business Continuity

The directive significantly reshapes third-party risk management by requiring:

• Full mapping of critical dependencies
• Continuous monitoring of strategic partners
• Intelligent document workflows

In industry, this means enhanced monitoring of ICPE sites and in-depth evaluation of critical suppliers.

Reputation and Economic Viability

The implications go beyond compliance, with direct impacts on:

Financial Sanctions

• Up to EUR 10 million or 2% of global turnover for essential entities
• Up to EUR 7 million or 1.4% for important entities

Managerial Accountability

• Direct executive engagement
• Supervisory obligation for protection measures
• Mandatory cybersecurity training

In the retail sector, for example, compliance is now a prerequisite to maintaining trust among commercial partners—especially in international e-commerce. This regulatory shift demands a profound transformation of third-party governance, with a strong focus on collaborative evaluation and shared compliance data.

Best Practices for Compliance and Security

NIS 2 compliance requires a global strategy integrating collaborative evaluation, ongoing training, and appropriate technology. Here are key practices for effective third-party governance:

Continuous Risk Assessment

Collaborative evaluation of third parties is based on three key pillars:

• Detailed mapping of critical dependencies
• Real-time monitoring of vulnerabilities
• Predictive analysis of emerging risks

In construction, for instance, this means multi-level subcontractor management, with a strong focus on certifications and qualifications.

European Harmonization and Governance

The NIS 2 Directive sets a unified legal framework to protect 18 critical sectors across the EU. This harmonization deeply transforms collaborative third-party governance, setting common standards for evaluation and control.

Cross-Border Coordination

• Creation of the EU-CyCLONe crisis management network
• Establishment of CSIRT teams (Computer Security Incident Response Teams)
• NIS Cooperation Group for strategic information sharing

In the public sector, this translates to standardizing public procurement requirements and critical vendor evaluations.

Integrating Third Parties into Security Strategy

Implementing NIS 2 requires a complete transformation of third-party governance. A recent study shows that 75% of organizations have not yet allocated dedicated resources to NIS 2 compliance, highlighting the urgency of action.

Integration Pillars

• Ongoing evaluation of strategic partners
• Real-time monitoring of critical vendors
• Shared compliance data pools

In industry, this means enhanced ICPE oversight. In construction, multi-level subcontractor management with certification checks. The directive also increases executive accountability, with 34% of organizations currently reporting lack of executive involvement in NIS 2 implementation. This calls for a strategic shift involving all stakeholders.

Conclusion

The NIS 2 Directive marks a pivotal shift in collaborative third-party governance across Europe. This regulatory evolution demands a new dynamic of critical third-party assessment, going far beyond simple compliance. Organizations face three major challenges:

• Adopting a structured methodology for critical third-party evaluation
• Building long-term operational resilience
• Developing a culture of shared excellence

Priority sectors exemplify this evolution:

• Public sector: enhanced public procurement governance
• Industry: stronger ICPE site control
• Construction: structured subcontractor management
• Retail: secure e-commerce platforms

With penalties reaching EUR 10 million, companies must now view third-party governance as a strategic pillar of their digital transformation. This shift toward collaborative evaluation of critical partners is both a regulatory imperative and a lever for performance and resilience across the European ecosystem.