Last updated 3rd January 2025

NIS2 Frequently Asked Questions (FAQ)

The purpose of this document is to create awareness about the scope of application of the NIS2 legal framework in Ireland. This document is for awareness purposes only and should not be relied on, as the NIS2 directive has not yet been transposed into Irish law. Readers are advised to seek independent professional advice before acting on anything contained herein. This information supplements the information already available on the NCSC website.


1. What are the objectives of the NIS2 Directive?

Directive 2022/2555 (known as "NIS2") and the Irish NIS2 legislation transposing it, lays down measures that aim to achieve a high common level of cybersecurity across the European Union, with a view to improving the functioning of the internal market. It aims to strengthen cyber resilience by focusing on the following key objectives:

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2. What is the scope of the Directive NIS2?

The NIS2 Directive applies to public or private entities which are, in principle, established in Ireland of a type referred to in Annex I or II which qualify as medium-sized enterprises under Article 2 of the Annex to Recommendation 2003/361/EC, or exceed the ceilings for medium-sized enterprises provided for in paragraph 1 of that Article, and which provide their services or carry out their activities within the Union.

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3. What is the difference between Essential and Important entities?

The NIS2 law distinguishes between "essential" and "important" entities. In principle, this distinction is based on the size of the entity and the service provided:

Essential entities include the following:

Important entities: All medium or large entities from Annex II and entities in Annex I that do not qualify as essential due to their size. This includes entities identified by Ireland as important.

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4. What is the difference in the supervision of "essential" and "important" entities?

The primary distinction between essential and important entities lies in supervision and sanctions they’re subject to.

The NIS2 Directive states:

Essential Entities (Article 32)

Essential entities are monitored in a proactive manner, often referred to as “ex ante”. They are defined as organisations providing services critical to public safety and economic stability. Their disruption would have severe societal impacts, warranting the highest level of cybersecurity oversight. Competent Authority powers include:

Important Entities (Article 33)

Important entities, however, are supervised in a more reactive manner, or “ex post.” This means their monitoring is based on evidence or signs that they might not be fulfilling their legal obligations. These Include organisations that, while not as critical as essential entities, still play a significant role in the economy or public services. Competent authorities, when exercising their supervisory tasks in relation to important entities, have the power to subject those entities at least to:

The targeted security audits referred to in the first subparagraph, point (b), shall be based on risk assessments conducted by the competent authority or the audited entity, or on other risk-related available information.

The results of any targeted security audit shall be made available to the competent authority. The costs of such targeted security audit carried out by an independent body shall be paid by the audited entity, except in duly substantiated cases when the competent authority decides otherwise.

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5. What enforcement powers do the Competent Authorities have in relation to Essential and Important entities?

The NIS2 Directive states:

Essential Entities

Competent authorities, when exercising their enforcement powers in relation to essential entities, will have the power to:

Where enforcement measures are ineffective, Member States shall ensure that their competent authorities have the power to establish a deadline by which the essential entity is requested to take the necessary action to remedy the deficiencies or to comply with the requirements of those authorities. If the requested action is not taken within the deadline set, Member States have the power to:

More information can be found at article 32 & 33 of the Directive.

Important Entities

Competent authorities, when exercising their enforcement powers in relation to important entities, have the power at least to:

More information can be found at article 32 & 33 of the Directive.

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6. How do you calculate the size of an entity?

Under the NIS2 directive, the size of an entity is determined based on staff headcount and financial ceilings as set out in the annex of Recommendation 2003/361/EC. Here’s how it works:

Small & Medium Enterprises (SMEs)

The category of micro, small and medium-sized enterprises (SMEs) is made up of enterprises which employ fewer than 250 persons and which have an annual turnover not exceeding EUR 50 million, and/or an annual balance sheet total not exceeding EUR 43 million.

To be classed as an SME, an organisation must have less than 250 employees and have a turnover less than €50m and/or balance sheet of less than €43m. This means that if an organisation has a turnover less than €50m or a balance sheet less than €43m they fall below the threshold and are classed as an SME.

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7. What sectors and services are covered by the Directive?

Entities must provide at least one of the services listed in annexes I or II of the Directive. These sectors include highly critical sectors such as energy, transport, public health, and others, as well as other critical sectors like postal services, waste management, and food production. The Banking and Financial market infrastructures sector are covered by DORA and are “Lex Specialis”. More information in this table:

Highly critical sectors (Annex I)

  1. Energy
    1. Electricity
    2. District heating and cooling
    3. Oil
    4. Gas
    5. Hydrogen
  2. Transport
    1. Air
    2. Rail
    3. Water
    4. Road
  3. Banking*
  4. Financial market infrastructures*
  5. Public Health
  6. Drinking water
  7. Wastewater
  8. Digital infrastructure
  9. ICT service management (business-to-business)
  10. Public administration
  11. Space

* (EU)2022/2554 (DORA) applies


Other critical sectors (Annex II)

  1. Postal and courier services
  2. Waste management.
  3. Manufacture, production and distribution of chemicals.
  4. Food production, processing, and distribution
  5. Manufacturing
    1. Manufacture of medical devices and in vitro diagnostic medical devices
    2. Manufacture of computer, electronic and optical products
    3. Manufacture of electrical equipment
    4. Manufacture of machinery and equipment.
    5. Manufacture of motor vehicles, trailers and semi-trailers
    6. Manufacture of other transport equipment
  6. Digital providers
  7. Research

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8. Are there any entities that are exempt?

The NIS2 directive recognises that certain public bodies may require exemptions from specific provisions of the directive to maintain their independence, confidentiality, or operational effectiveness. For example, judicial bodies or intelligence agencies may be exempted to protect the integrity of their functions. Member States may exempt entities involved in national security, public security, defence, or law enforcement from certain obligations.

Exemptions in this context are limited to provisions that would interfere with the public body’s statutory duties or compromise sensitive operations. Exemptions do not apply to general cybersecurity obligations, such as safeguarding critical networks and reporting incidents. It is likely that any exemption will be subject to periodic review to ensure they remain necessary and do not create undue risks to national cybersecurity.

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9. Could the sectors covered by the NIS2 Directive be extended in the future?

The answer is yes, they could. The Irish government holds the authority to include additional sectors or subsectors for regulation.

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10. Does the Directive apply to certain entities, regardless of their size?

Yes, regardless of their size, the Directive also applies to certain entities referred to in Annex I or II, where:

NIS2 Videos

NIS2 Slides from NCSC Conference 2024