Companies face risk of huge fines and suspensions under tough new cyber rules in the EU

The EU's NIS 2, or Network and Information Security Directive 2, will on Oct. 17 become enforceable by member states.

The rules impose tougher requirements on companies around their internal cyber resilience strategy and internal practices.CNBC runs through all you need to know about NIS 2 — from what the law requires to the potential penalties businesses could face for violations.NIS 2, which stands for Network and Information Security Directive 2, is an EU directive that aims to increase the security of IT systems and networks across the bloc.

"NIS 2 will be seen as a global standard by judges" when it becomes enforceable, Van der Linden added."For our clients, regardless of whether they are seen as essential or important in the regulation, they have to look at that baseline and make sure they are compliant." Chris Gow, head of Cisco's EU public policy team, told CNBC that a"mapping exercise" will take place under NIS 2 where companies have to scan their tech vendors to evaluate any potential risks.

Firms can also face possible suspensions of service if they fail to comply with NIS 2, as well as closer supervision to see if they have become compliant. Cisco's Gow said that even without the threat of new regulation looming, businesses have been working hard to shift their culture internally to ensure that they're taking the threat of cyber breaches and outage incidents seriously.

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