Cyber Security and Resilience Bill: Why Your Business Can't Wait

The Net Is Cast Wider (Who Must Comply)

The law goes beyond obvious critical infrastructure in an attempt to identify weak links in the supply chain that hackers often exploit. If you are a medium or large company providing any of the following services, you will be in scope:

• Managed IT Service Providers (MSPs), Providing IT management, help desk support, or outsourced cyber security services to other businesses. The primary reason is because you have "trusted access" to many customer networks, making you a critical target.
• Data Centres, are essential services and must meet robust cyber security standards.
• Large Load Controllers, organizations that manage the flow of electricity to smart appliances (like electric vehicle chargers) are included to prevent widespread grid disruption.

And finally and maybe most critical to be aware of:

• Critical Suppliers, the regulators can now designate any supplier as "critical" if an incident affecting them is likely to cause a significant impact on the economy or the day-to-day functioning of society.

This final point means that even small companies can be brought into scope if their products or services are vital to the aforementioned essential services.

Mandatory Security and Rapid Reporting (What You Must Do)

The Bill sets clear, mandatory duties for all regulated organizations:

1. Follow the CAF Security Checklist, Companies must comply with robust, nationally recognized standards, primarily aligning with the National Cyber Security Centre's (NCSC) Cyber Assessment Framework (CAF). This provides a required methodology for managing risks and proving compliance during audits.
2. Report Incidents Faster, If you become aware of a significant incident (including ransomware attacks), you must follow a two-stage reporting process to your regulator and the NCSC. Initial Alert ( which is an early warning notification) must be given within 24 hours with a A comprehensive full notification must follow within 72 hours.
3. Tell Your Customers, Data centres, digital service providers, and managed service providers now have a direct duty to notify their customers in the UK if they are likely to be adversely affected by a significant incident.

Tougher Consequences and Government Intervention (What Happens If You Fail)

The new regime introduces severe financial penalties and gives the government direct power to intervene when national security is at risk.

Massive Financial Penalties

The fines are now tied to a company's global turnover, making compliance a mandatory board-level concern. The previous maximum fine of £17 million was deemed insufficient for large entities.

• Standard Breach (Less Serious): Up to £10 million or 2% of worldwide turnover, whichever is higher.
• Serious Breach (e.g., failure to fulfil security duties or failure to notify incidents): Up to £17 million or 4% of worldwide turnover, whichever is higher.

The Government Can Intervene

The Secretary of State (the Technology Secretary) is given the Power of Direction, allowing them to order a regulated entity to take specific, proportionate action immediately if an imminent or live threat poses a risk to national security. This power allows the government to compel actions like performing technical investigations or immediate mitigation steps.

Regulators Get Resources

Regulators gain powers to impose charges and recover their costs, ensuring they are better resourced to oversee and enforce the updated security laws.