Can I really be fined €10 million?

Yes, for essential entities the maximum is €10 million or 2% of global turnover, whichever is higher. However, this is the maximum for severe violations. Most penalties will be lower, especially for organizations showing good faith compliance efforts.

What if my company can't afford the fine?

Penalties are designed to be proportionate. Regulators consider the organization's financial situation. However, inability to pay doesn't eliminate the penalty - it may be adjusted but will still be enforced.

Can board members really be personally sanctioned?

Yes. NIS2 explicitly includes personal liability for management. Board members who fail to approve and supervise cybersecurity measures can face personal fines and be temporarily barred from management positions in any company.

How quickly do I need to report incidents?

Significant incidents must be reported within 24 hours of detection (early warning), with a full incident notification within 72 hours, and a final report within one month. Late reporting can trigger additional penalties.

Will regulators really enforce these penalties?

Yes. EU regulators are building enforcement capacity throughout 2025. GDPR showed that EU penalties are not empty threats - significant fines have been issued. NIS2 enforcement will follow a similar pattern.

NIS2 Penalties: What's Really at Risk?

The Problem: Penalties Are Real and Significant

Unlike previous cybersecurity guidelines, NIS2 has been designed with enforcement in mind. The EU learned from GDPR that meaningful penalties drive real change. Here's what you're facing:

Fines scale with your business

Percentage-based penalties mean larger organizations face proportionally larger fines - there's no "cost of doing business" calculation that makes non-compliance worthwhile.

Personal liability is new

For the first time, executives and board members can be held personally responsible for cybersecurity failures. This isn't just about the company anymore.

Multiple triggers exist

Penalties can be imposed for various failures: inadequate risk management, late incident reporting, supply chain negligence, or failing to register with authorities.

Public disclosure hurts

Beyond fines, authorities can publicly name non-compliant organizations - a reputational blow that can cost more than the fine itself.

Why This Matters More Than You Think

It's easy to think "this won't happen to us" - until it does. Consider these realities:

The ransomware scenario

Your company gets hit by ransomware. You don't report it within 24 hours because you're scrambling to respond. Now you face two problems: the attack itself AND potential fines for late reporting. Under proposed new requirements, you must also disclose the attack vector, mitigation measures taken, and whether you paid a ransom (and how much). The penalty? Up to €10M on top of your recovery costs.

The supply chain scenario

A vendor you work with gets breached, and your data is exposed. Investigation reveals you never assessed their security. Under NIS2, you're liable for supply chain security failures - even if the breach wasn't at your organization.

The management scenario

The board decided cybersecurity investment could wait. After an incident, regulators find that management was warned but didn't act. Individual board members now face personal sanctions, including being barred from management positions.

NIS2 Penalty Structure

Entity Type	Administrative Fines	Other Sanctions
Essential entities	Up to €10 million OR 2% of total worldwide annual turnover (whichever is higher)	Personal liability, management suspension, public disclosure
Important entities	Up to €7 million OR 1.4% of total worldwide annual turnover (whichever is higher)	Personal liability, compliance orders, public disclosure
Late incident reporting	Administrative fines (amount varies by member state)	Compliance orders, increased scrutiny
Failure to register	Administrative fines	Mandatory registration orders
Ransomware non-disclosure (proposed)	Administrative fines	Must report attack vector, mitigations, and whether ransom was paid

Penalties apply to the higher amount between fixed sum and percentage

Personal Liability: What Management Needs to Know

NIS2 introduces personal accountability for cybersecurity at the management level. This is unprecedented in EU cybersecurity law.

Who is liable?

Members of management bodies (board of directors, executive management) who have decision-making authority over cybersecurity matters.

What triggers liability?

Failure to approve and supervise implementation of cybersecurity risk management measures, or not ensuring adequate resources are allocated.

What are the consequences?

Personal fines, temporary prohibition from exercising managerial functions, and in some cases, public naming.

How to protect yourself?

Document decisions, ensure adequate budget allocation, require regular cybersecurity reporting, and approve formal policies. Good faith efforts matter.

Personal liability of management under NIS2 — NIS2 makes management personally accountable for cybersecurity

The Solution: Compliance Protects You

The good news is that NIS2 penalties are designed to punish negligence, not honest mistakes. Organizations that demonstrate genuine compliance efforts are in a much stronger position.

Implement CyberFundamentals

Belgium's CCB framework is specifically designed to meet NIS2 requirements. Starting with the free Small level shows you're taking action.

Document everything

Keep records of all cybersecurity decisions, risk assessments, and control implementations. This evidence protects you during audits.

Set up incident reporting

Have a clear process for detecting and reporting incidents within 24 hours. Practice it before you need it.

Assess your supply chain

Evaluate the security posture of critical suppliers. Document your assessments and any requirements you impose.

Get management buy-in

Ensure board-level oversight of cybersecurity. Document decisions and budget allocations to protect individual managers.

Factors That Reduce Penalties

Regulators consider several factors when determining penalty amounts. These can work in your favor:

Prior compliance efforts
Documented history of working toward compliance, even if not complete
Cooperation with authorities
Prompt reporting, full transparency during investigations
Remediation actions
Quick response to address issues once identified
First-time violation
No history of previous NIS2 or cybersecurity violations
Impact limitation
Steps taken to minimize the impact of any security incident

Factors That Increase Penalties

Conversely, these behaviors can lead to higher penalties:

Repeated violations
History of non-compliance or multiple current violations
Intentional misconduct
Deliberately ignoring requirements or covering up incidents
Obstruction
Failure to cooperate with regulators or provide requested information
Significant impact
Incidents affecting many users or critical services
Financial gain
Non-compliance motivated by cost savings or competitive advantage

How NIS2 Compares to GDPR Penalties

For context, here's how NIS2 penalties compare to the GDPR fines you may already be familiar with:

Aspect	GDPR	NIS2
Maximum fine	€20M or 4% turnover	€10M or 2% turnover
Personal liability	Limited	Explicit management liability
Management sanctions	No	Yes - can be barred from roles
Applies to	All organizations with EU data	Essential and important entities only
Belgian authority	GBA	CCB + sectoral authorities

How Easy Cyber Protection Reduces Your Risk

Our platform is designed to help you build a defensible compliance position:

Audit trail — Every action is documented - proof of your compliance efforts

CyberFundamentals alignment — Controls map directly to Belgian requirements

Incident procedures — Built-in workflows for 24-hour reporting compliance

Management reporting — Board-ready reports showing oversight and progress

Evidence collection — Centralized storage for all compliance documentation