Security

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Frequently Asked Questions

What is critical infrastructure security?

Critical infrastructure security covers the protection of systems essential to societal functioning: energy grids, water treatment, financial systems, transport networks, hospitals, and telecommunications. Under EU KRITIS regulations and NIS-2 (2024), operators of essential services must implement risk management measures, incident reporting, and supply chain security protocols.

What does NIS-2 require from businesses?

NIS-2 (EU Directive 2022/2555) requires medium and large organizations in 18 critical sectors to implement cybersecurity risk management, incident response plans, business continuity measures, and supply chain security assessments. Non-compliance carries fines up to €10M or 2% of global annual turnover. Management liability was explicitly included — executives can be held personally responsible.

How does dual-use technology create investment risk?

Dual-use technology has both civilian and military applications — semiconductors, drones, AI, encryption. Investment risk arises from export control regulations (EU 428/2009, US EAR), FDI screening (EU 2019/452), and reputational exposure if portfolio companies sell to restricted end-users. Private equity buyers must conduct thorough dual-use compliance due diligence before closing.

What is cyber resilience in the context of EU AI Act?

Under the EU AI Act, AI systems used in critical infrastructure are classified as high-risk (Annex III). Operators must implement risk management systems, data governance, logging, human oversight, and accuracy standards. Cyber resilience — the ability to withstand and recover from attacks — is a mandatory requirement for high-risk AI system deployment.

What are sovereign defense investments?

Sovereign defense investments are capital deployed into the European defense industrial base — ammunition, armored vehicles, missile systems, surveillance, cybersecurity, and dual-use technology. Post-2022, European governments have dramatically increased defense budgets (Germany: €100B Sondervermögen), creating private sector opportunity in defense-adjacent manufacturing, technology, and logistics.