What is the EU Cyber Resilience Act and 10 Steps to Comply

Software systems are constantly under siege from attacks. Yet, there's something equally critical in modern organizations' minds: cyber regulations. While new laws are essential for security and should be treated with the highest priority, fresh requirements in the regulatory landscape can be tricky to keep track of. 

In fact, cybercrime will cost $10.5 trillion annually by 2025, and the clock is ticking until this fateful figure becomes a reality. In response to security pressures, the latest law on everyone's lips is the EU Cyber Resilience Act. It complements GDPR, improving data privacy while focusing on protecting software and hardware systems and their durability against cyber attacks.

What is the EU Cyber Resilience Act?

The EU Cyber Resilience Act, or CRA, is a law in the European Union that deals with digital product security to shield users from cyber risks. Unlike GDPR, which concentrates on protecting personal data, the CRA focuses on product security, including software, hardware, and related services. The CRA outlines the requirements for integrating cybersecurity into a product's lifecycle, such as secure coding practices and access control.

The CRA applies to manufacturers, businesses, and distributors that provide connected digital products or services, such as IoT devices, consumer electronics, and software, within the EU. These products must meet cybersecurity standards, including regular security updates, and carry a CE mark to show compliance with EU safety standards.

Cyber Resilience Act vs GDPR

Though both the GDPR and the CRA protect users' privacy, there are several significant differences, as we can explore in the table below:

What the Cyber Resilience Act Means for Security in the EU

The primary aim of the CRA is to ensure security is integrated into all stages of the product, and companies are compelled to treat cybersecurity as a critical element in their operations. The CRA offers several benefits for businesses that follow its regulations:

• Products with the CE mark guarantee customers a high level of security.

• Compliance minimizes the chances of experiencing cyberattacks.

• Complying with laws avoids expensive fines.

• Prioritizing CRA demonstrates a commitment to security, therefore building customer trust. 

• Minimize costs related to data breaches, recovery, and other regulatory actions.

Penalties for Non-Compliance

Failure to adhere to the CRA's requirements can result in severe monetary repercussions, with sanctions of up to €15 million or 2.5% of the firm's global turnover, depending on which amount is greater.

7 Essential Security Requirements Included in the EU Cyber Resilience Act

According to the EU Cyber Resilience Act, there is no specific or defined figure for the number of security requirements. Instead, it discusses the responsibilities that aim to enhance the level of cybersecurity of various digital devices.

• Secure Product Design: Manufacturers should consider the product's cyber security as part of the overall production design.

• Access Control: Security mechanisms should be built into products to limit forceful intrusion.

• Regular Security Updates: Business enterprises are supposed to issue regular updates to customers, which focus on new security challenges posed towards the products.

• Incident Detection and Reporting: The CRA mandates detection mechanisms for security incidents, with reporting requirements for critical breaches.

• Vulnerability Handling: Companies must identify and disclose vulnerabilities promptly, ensuring swift (and preemptive) responses to emerging and zero-day threats.

• Data Security in Transmission: Unauthorized parties should not have access to the information exchanged by digital products as it should be properly encrypted.

• CE Marking and Documentation: Compliant products must have detailed security documentation for verification and carry the CE mark, showing they meet EU security standards.

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10 Steps to Comply with the Cyber Resilience Act

1. Conduct a Cybersecurity Risk Assessment

A risk assessment aims to determine potential security weaknesses in your product. It includes all stages of the product life cycle, from development to maintenance. For example, a risk assessment could evaluate and identify risks such as inadequate password safeguards and devise a strategy to strengthen these aspects before production.

Implementation Tips:

• Use frameworks like NIST or ISO 27001 to conduct regular assessments.

• Use tools like RiskWatch for risk scoring and Cynomi for integrated assessments.

• Use platforms like Recorded Future for real-time threat intelligence to keep your assessment current as new risks emerge.

  
  

2. Integrate Security into Product Design

Embedding security in the design phase reduces vulnerabilities and aligns with the CRA’s focus on secure development. Let’s consider an example: an IVF healthcare company could implement data encryption on its app from day one to protect sensitive information, such as patient medical records and embryo grading scores.

Implementation Tips:

• Apply secure coding practices and use well-tested libraries.

• Follow security design principles like OWASP’s Top 10 guidelines.

• Use tools like Checkmarx or SpectralOps for thorough static code analysis to identify and fix potential vulnerabilities early.

  
  

3. Implement Access Control Mechanisms

Access control limits unauthorized access, protecting system and user data. To reduce access risks and improve asset visibility, an IoT manufacturer could integrate multi-factor authentication for remote device settings.

Implementation Tips:

• Use Multi-Factor Authentication (MFA).

• Implement Role-Based Access Control (RBAC) through platforms like Auth0 or AWS IAM, which offer scalable options for assigning permissions based on user roles. 

• Regularly test access control mechanisms with AccessEnforcer or similar tools.

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4. Establish a Process for Regular Security Updates

Regular updates protect products from emerging threats. For instance, a software company might schedule monthly updates and immediately deploy critical patches if vulnerabilities arise.

Implementation Tips:

• Use Automox or Microsoft SCCM for automated patch deployment to reduce manual errors.

• Platforms like AlienVault can provide continuous threat detection and intelligence to identify when patches are necessary.

• Notify users of critical updates through emails or integrations like Slack, Teams, and WhatsApp.

  
  

5. Set Up Incident Detection and Response Protocols

Incident response protocols help manage security breaches effectively. For example, a financial app could use anomaly detection to identify unauthorized transactions, and then follow a response plan.

Implementation Tips:

• Use intrusion detection systems like Snort or Suricata to detect suspicious activities.

• Set up alerts through Splunk or ELK Stack to monitor for anomalies and initiate response protocols immediately.

• Define a clear response plan, including steps for containment and reporting.

• Use a WAF to precisely detect threats that could hinder compliance with the EU Cyber Resilience Act. For example, the best WAF solutions, like open-appsec provide preemptive protection against the OWASP Top 10 and zero-day attacks without signature updates. 

  
  

6. Prepare Vulnerability Management and Disclosure Processes

This process identifies and addresses product vulnerabilities. E.g., a router manufacturer could set up a portal for researchers to report vulnerabilities, enabling timely patching.

Implementation Tips:

• Use tools like Qualys or SpectralOps to scan and detect system vulnerabilities.

• Create a disclosure policy for external vulnerability reporting.

• Engage ethical hackers through platforms like HackerOne or Bugcrowd to identify and report vulnerabilities.

  
  

7. Ensure Secure Data Transmission

Secure data transmission prevents interception during data exchange. For instance, an IoT thermostat that connects to a mobile app should encrypt all transmitted data to protect against interception.

Implementation Tips:

• Implement HTTPS and TLS for secure communication using OpenSSL or Let’s Encrypt for certificate management.

• Use tools like Zscaler and Cloudflare to monitor data flows to detect and prevent data leaks.

  
  

8. Document Compliance and Obtain the CE Mark

Detailed documentation shows compliance, and the CE mark certifies that products meet EU standards. Imagine that a toy manufacturer might document design choices, assessments, and updates to show compliance before affixing the CE mark.

Implementation Tips:

• Maintain records of all security measures and compliance steps with tools like Netwrix Auditor or Qualio.

• Store all records in a secure repository like SharePoint or Confluence for easy access during audits.

• Engage certification bodies such as TÜV SÜD or SGS for CE mark assessment and certification.

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9. Conduct Regular Conformity Assessments

Conformity assessments verify ongoing compliance. In this case, a cybersecurity tool provider might conduct quarterly assessments to ensure products meet CRA standards.

Implementation Tips:

• Schedule assessments regularly, using third-party verifications for high-risk products.

• Automate assessment workflows using tools like Compliance.ai or LogicGate for consistent reviews.

• Document assessment results to support continued compliance.

  
  

10. Train Staff on CRA Compliance Requirements

Training ensures that teams understand CRA requirements. If you’re a consumer electronics company, you might hold annual CRA workshops for developers to ensure secure product development.

Implementation Tips:

• Conduct regular training sessions on CRA compliance and cybersecurity practices.

• Educate staff on secure coding, incident response, and data protection.

• Update training as CRA guidelines evolve.