Treading Regulatory Waters: CMMC, DORA, and Cybersecurity 

At a glance

• The main takeaway: Regulatory frameworks such as CMMC and DORA underscore the pressing need to integrate robust cybersecurity measures as a core component of business operations.
• Impact on your business: Rapid advancements in technology are not only transforming how businesses operate but also necessitating a shift in how they approach cybersecurity. 
• Next steps: In a regulatory landscape that is always changing, internal IT departments often find themselves stretched thin. Aprio can help streamline your compliance processes, redirecting valuable time and resources so that your IT teams can focus on business initiatives that drive growth and innovation.

Have questions? Schedule a consultation with our team today.

The full story:

Technology companies will need to brace for significant regulatory changes as the Cybersecurity Maturity Model Certification (CMMC) will require defense contractors and their third-party providers to meet stringent cybersecurity standards. Meanwhile, the Digital Operational Resilience Act (DORA) will impose rigorous cybersecurity requirements on financial institutions and their information and communication technology (ICT) providers. These regulations will drive up compliance and security costs, emphasizing the need for robust risk management and operational resilience across the tech industry.

CMMC Compliance

The CMMC program is a highly technical and robust law that will impact over 50,000 companies involved in the defense contracting supply chain. Developed by the U.S. Department of Defense, CMMC aims to strengthen cybersecurity within the Defense Industrial Base (DIB) by enforcing a standard that ensures contractors protect sensitive DoD information. It’s no longer enough for federal contractors to have their own cybersecurity measures in place; third-party providers now must be compliant too, creating a cascading effect.

Compliance with CMMC will be mandatory to secure or retain government contracts. Therefore, federal contractors must achieve certification before they can win future government contracts. This new federal law will have ripple effects throughout the entire economy as contractors, subcontractors, and technology providers that handle Controlled Unclassified Information (CUI) will be held to these standards.

DORA and regulatory concerns

Across the Atlantic, the European Union has implemented the Digital Operational Resilience Act (DORA) as part of its broader Digital Finance Package (DFP). DORA is designed to increase the resilience of financial institutions to ICT-related incidents and imposes stringent cybersecurity requirements across the EU’s financial sector. DORA requires financial institutions and their ICT providers to implement new technical standards by January 17, 2025. It will be critical for technology companies to cover four key areas: ICT risk management and governance, incident response and reporting, digital operational resilience testing, and third-party risk management.

What they mean for your business:

• Cybersecurity risks: There is a trend towards quantifying cybersecurity risk and making a clear case for the budget needed to address it. CFOs and financial leaders must be able to justify spending on cybersecurity with concrete metrics and assessments, demonstrating how investments directly mitigate risks and protect business continuity.
• Supply chain risks: Both CMMC and DORA emphasize the importance of supply chain resilience. A single vulnerability in the supply chain can jeopardize the entire network, therefore it is critical for companies to verify that their vendors comply with security standards. Companies need to conduct thorough vendor assessments to stay compliant, as a lapse could render them ineligible for contracts they have held for years.

The bottom line

As companies navigate the complexities of cybersecurity compliance, it has become evident that embracing these changes is not just about meeting regulatory requirements. Organizations that prioritize investments in cybersecurity and operational resilience are more likely to position themselves for sustainable growth and innovation, driving their digital transformation forward. Moreover, businesses must remain agile and proactive, continuously assessing and enhancing their cybersecurity measures while ensuring compliance with standards like CMMC and DORA. Aprio’s “Technology Outlook 2025: Pioneering the Next Wave of Digital Transformation” report is out now. Download the full report here.

Related Resources/Assets/Aprio.com articles/pages

DORA Compliance and ISO 27001 – Aprio

Cybersecurity Certification on the Forefront for Government Contractors – Aprio

Managed Compliance Services | Aprio