Systems and assets: the distinction that makes NIS2 auditable

nis2, inventory, systems, assets, compliance

One of the biggest challenges in implementing NIS2 is not technical. It is conceptual.

Many organizations struggle to answer seemingly simple questions:

  • what truly belongs to the NIS2 scope
  • which elements are critical
  • where evidence actually lives
  • how governance connects to operations

At the root of this confusion is often one mistake: failing to distinguish between systems and assets.

What NIS2 means by “system”

NIS2 focuses on services and functions that support organizational operations. A system is not a server or a tool, but a logical service.

Examples of systems:

  • Customer Portal
  • Authentication Service
  • Incident Management System
  • Payment Processing System

A system:

  • supports an essential or important service
  • has direct impact on continuity and security
  • defines what authorities expect to see in scope

NIS2 asks:

“Which systems are critical to delivering your services?”

What assets are

Assets are the concrete components that make a system work:

  • applications
  • databases
  • cloud infrastructure
  • identity providers
  • monitoring tools
  • backups

Assets:

  • change more frequently
  • are managed by different teams
  • are where controls are applied
  • are the natural home of evidence

Logs, configurations, test reports, backups: evidence lives on assets, not on systems.

Why this distinction matters for NIS2

NIS2 requires demonstrable control. That control exists on two connected but distinct levels:

  • Systems → define what is critical
  • Assets → demonstrate how it is controlled

Without this separation:

  • scope becomes unclear
  • evidence is fragmented
  • accountability is blurred
  • audits become hard to explain and defend

With a clear distinction:

  • scope is readable
  • ownership is assignable
  • evidence is traceable
  • audits become coherent narratives

A practical example

Consider a Customer Portal.

The system is the service as a whole. Assets may include:

  • Web application
  • Backend API
  • Customer database
  • Identity provider
  • Cloud production account

NIS2 looks at the Customer Portal as a critical system. Your ability to demonstrate compliance depends on:

  • which controls apply to the assets
  • which evidence exists
  • who owns them
  • what happens during an incident

Without this mapping, compliance remains abstract.

Inventory as a governance tool, not a CMDB

A common mistake is treating inventory as a technical exercise. NIS2 does not require a full CMDB. It requires understanding and control.

An effective compliance inventory:

  • is essential, not exhaustive
  • is risk-oriented
  • connects systems, assets and suppliers
  • supports audits, incidents and reporting

It is a governance tool, not a catalog.

The AuditReady model

AuditReady is built around this distinction:

  • systems define the NIS2 scope
  • assets host controls and evidence
  • audits, incidents and simulations connect the two layers

This model allows organizations to:

  • explain compliance clearly
  • demonstrate it with real evidence
  • sustain it over time without friction

Without a system–asset distinction, NIS2 remains theoretical. With a clear distinction, it becomes auditable.