In the business world of 2026, information security is no longer merely a technical issue under the exclusive responsibility of development and IT personnel. With the entry into force of the latest amendments to the European NIS2 Directive and the enactment of the Israeli National Cyber Defense Law Memorandum, 2026[1], the legal responsibility for cyber incidents has shifted from the server room directly to the boardroom table.
Over the past decade, global cyber regulation has undergone an accelerated maturation process. For Israeli companies operating in the international arena, understanding the regulatory timeline is no longer a matter of "technical compliance," but a prerequisite for business and legal survival. The process began in 2016 with the adoption of the European NIS1 Directive.[2] This directive focused on "operators of essential services" (national infrastructures) and was largely voluntary for the broader business sector.
However, a dramatic turning point occurred in 2024 with the entry into force of the NIS2 Directive,[3] which expanded the scope of regulation to 18 different sectors - including manufacturing, food, waste management, and digital services. It imposed strict reporting obligations and established that company management bears direct responsibility for adopting adequate protection measures. Despite being a European legislation, its impact on the Israeli economy is critical: any Israeli company providing services to the EU, operating within its territory, or acting as a link in the supply chain of a European entity, is obligated to meet these standards.
In January 2026, the European Union introduced significant changes (the "Cyber Package 2026"[4]) designed to address geopolitical risks and ransomware attacks. Concurrently, in Israel, the 2026 Cyber Defense Law Memorandum imposes similar obligations on entities defined as "digital service providers" and "essential infrastructures," seeking to require companies to conduct Cyber Due Diligence for every supplier in their supply chain. As long as a company operates as a software or IT provider, it is highly likely that its clients will demand proof of compliance with NIS2 standards as a precondition for contractual engagement.
The updated regulation also requires reporting any significant cyber incident within 24 hours, including details on ransomware attacks, leading to extensive exposure of the company's activities during a crisis. Furthermore, responsibility can no longer be exclusively delegated to the Chief Information Security Officer (CISO); senior executives are now required to undergo cyber training and explicitly approve organizational defense plans. If a cyber incident occurs and it is found that the company did not invest the necessary resources, the implications could include personal financial sanctions against board members and executives, and even suspension from their positions.
The Israeli law memorandum has broadened the scope even further: software development, cloud storage, and IT system management companies employing over 50 workers or with a turnover exceeding ILS 40 million will be classified as an "essential organization," subject to direct supervision by the National Cyber Directorate and strict enforcement.
Thus, in the regulatory era of 2026, cybersecurity has ceased to be a purely technological issue and has become a core element of legal risk management, where expert legal counsel combined with cyber consulting constitutes the organization's first line of defense. Beyond the acute need for close legal guidance to build "defensive walls" around the board of directors and officers to prevent exposure to lawsuits and personal liability, it is crucial to prepare in advance with an organizational cyber due diligence process. Ultimately, the integration of technological expertise with deep legal understanding is the only way to provide the organization with a presumption of legal propriety and offer peace of mind to executives facing both the regulator and the global market. Moreover, a company that fails to do so may find itself unable to conduct business with European companies.
[1] National Cyber Defense Law Memorandum, 2026, Published in Israel for public comments on January 22, 2026.
[2] Directive (EU) 2016/1148 of the European Parliament and of the Council of 6 July 2016 concerning measures for a high common level of security of network and information systems across the Union.
[3] Directive (EU) 2022/2555 of the European Parliament and of the Council of 14 December 2022 on measures for a high common level of cybersecurity across the Union.
[4] Proposal for a Directive of the European Parliament and of the Council amending Directive (EU) 2022/2555 as regards simplification measures and administrative relief for small mid-caps (Submitted in January 2026).