In 2021, global cybercrime inflicted an estimated €5.5 trillion in damages, often by exploiting security weaknesses in everyday digital products. To counter this threat, the European Union has introduced the Cyber Resilience Act (CRA) – a groundbreaking regulation that sets baseline cybersecurity requirements for any hardware or software product that can connect to the internet.

From smart TVs to baby monitors, if it’s networked, it needs to be secure. The CRA not only compels manufacturers and suppliers to embed stronger security in their products, but it also opens up new opportunities for businesses to build trust and resilience. Here’s an overview of what the act entails, its benefits, and how London Strategy can help your organization stay compliant, secure, and competitive.

What is the Cyber Resilience Act?

• EU-Wide Security Standards: The CRA introduces mandatory cybersecurity standards for a wide range of products with digital elements across the EU . It applies to companies worldwide that want to sell tech products in Europe – ensuring even non-EU manufacturers must comply.

• Secure by Design & By Default: Products must be designed and developed with cybersecurity in mind from the start. They are required to meet minimum security requirements and obtain a CE marking to certify compliance . This means everything from software to IoT devices must be resilient against cyberattacks, with known vulnerabilities identified, disclosed, and patched promptly .

• Rapid Incident Reporting: If a product has a critical vulnerability that’s being actively exploited, you must inform relevant national/EU cybersecurity authorities within 24 hours and alert users quickly . This transparency helps contain threats before they spread widely.

• Serious Consequences for Non-Compliance: Companies that fail to comply face hefty penalties – fines up to €15 million or 2.5% of global turnover (whichever is higher) – and could even be forced to recall insecure products. In short, security is no longer optional; it’s a legal requirement.

Benefits of the Cyber Resilience Act for Businesses

• Enhanced Customer Trust: With CRA enforcement, customers and business partners can have greater confidence in the security of CE-marked products. They know these devices or software have passed strict cybersecurity checks, making them more likely to choose your compliant product over a competitor’s .

• Reduced Risk & Resilience Against Attacks: By mandating stronger protections and timely patches, the CRA helps reduce the likelihood of breaches and malware incidents. This lowers the potential costs of cyberattacks for businesses and prevents scenarios where a single weak link can compromise an entire network .

• Unified Compliance Simplifies Business: Instead of navigating a patchwork of different national regulations, the CRA provides one uniform standard across the EU. This harmonization makes it easier for companies to streamline their product security processes and enter multiple markets with the same security certifications.

• Competitive Advantage Through Security: Companies that proactively meet CRA requirements signal that they prioritize cybersecurity and data protection. This not only helps avoid fines, but also becomes a selling point – security-conscious customers will prefer vendors who demonstrate compliance and robust cyber safeguards.

• Long-Term Cost Savings: Investing in security up front (as CRA requires) can save money in the long run by preventing expensive data breaches, downtime, and emergency patching. It’s more cost-effective to build resilience now than to pay for incidents later.

At London Strategy, we specialize in cybersecurity transformation and has helped a variety of organisations through meeting the Cyber Resilience Act’s requirements while bolstering their overall security posture.  

• Cybersecurity Maturity Assessment: We evaluated global public sector, life sciences clients to understand their current security posture to identify strengths, gaps, and compliance shortfalls. This assessment pinpoints what needs improvement to meet their new standards.

• Security Implementation Programs: Our team develops and executes a tailored plan to address vulnerabilities and implement necessary controls. From secure software development practices to network safeguards, we helped to embed “secure by design” principles into their products and processes.

• Threat Intelligence & Analysis: We provide insights into the latest cyber threats and trend analysis, so the security team can proactively patch vulnerabilities and protect against exploits – aligning with the CRA’s lifecycle approach to security .

• Risk Management Framework Development: For a large private organisation, we helped to build a structured risk management framework that incorporates mandatory obligations. This ensures continuous identification, assessment, and mitigation of cybersecurity risks in your product lifecycle, not just one-time compliance.

• Regulatory Compliance Assistance: Navigating regulatory requirements can be complex. Our security experts guide you through the documentation, certification, and reporting processes required by the CRA. We make sure you understand and fulfil every obligation – from CE marking paperwork to vulnerability disclosure protocols – with ease.

• SOC Setup & Optimization: We assists in establishing or improving Security Operations Center (SOC) capabilities. Effective 24/7 monitoring and response mean you can detect incidents and respond within required timeframes, keeping you compliant and your data safe.

As digital threats evolve, cyber resilience will define the success of businesses. Forward-thinking organizations recognize that compliance is just the first step – true resilience comes from continuously improving security practices and fostering a culture of cyber awareness.