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While ITAR is a consideration, cybersecurity and cyber regulation is a greater, more pressing, issue. Cyber regulatory compliance is an increasing area of focus for U.S and EU regulators. DoD DFARS cybersecurity oversight and assurance has been in place since 2017 and with CMMC moving through Federal Acquisition will present more challenges for the UK and EU defense industry. The theft of Defense IP is a National Security Issue.
While the UK spends money on ITAR integration, the money that is required to be spent on cyber compliance to DFARS 252.204-7012, 7019 and 7020 for the UK defense industry is an issue. As DoD cyber requirements set stringent cybersecurity compliance standards for UK Defense contractors and subcontractors under NISTSP 800-171 (A) to meet and maintain DoD defense contracts. For the UK, EU defense contractors and subcontractors cybersecurity is a competitive differentiator and an increasing important capability for political, economic and technical integration.
What makes cyber a pressing issue for the UK are the regulatory changes that are taking place outside of defense, over which the UK government and defense industry has no control. Namely the increase in U.S, EU and Australian cyber regulations (ONCD, EU NIS 2.0, DORA, CRA) and regulation coming from market regulators such as the SEC. Cyber regulation impacts UK defense contractors and subcontractors that trade with partners in and out of the UK.
Cyber regulation has a significant impact on the UK economy, greater than ITAR and unlike ITAR cyber is very difficult, complex and expensive risk to manage for the public and private sector.
Ted Dziekanowski
#cybersecurity #cyberriskmanagement #cyberregulation #dfars #cmmc #defense
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