Summary The EU Cyber Resilience Act (CRA) is a groundbreaking regulation establishing mandatory cybersecurity standards for most hardware and software products with digital elements in the EU. It aims to embed cybersecurity “by design and by default” across the product lifecycle – from development through post-sales support – to safeguard consumers and businesses from insecure technology (Cyber Resilience Act | Shaping Europe’s digital future) (The EU Cyber Resilience Act: Implications for Companies). The CRA applies broadly to connected products (including IoT devices, software, and hardware) offered on the EU market, imposing obligations on manufacturers (and other supply-chain operators) to ensure ongoing product security and swift vulnerability management. Key principles include secure product design, regular security updates for at least 5 years, incident and vulnerability reporting within 24 hours, and increased accountability via CE marking and documentation. Non-compliance can trigger fines up to €15 million or 2.5% of global turnover (Council of the European Union Adopts the Cyber Resilience Act). The CRA complements existing EU laws like GDPR, NIS2, and the proposed AI Act, closing gaps and creating a more cohesive cybersecurity framework. This report provides both a high-level overview and an in-depth breakdown of CRA’s scope, requirements, and implications, with tailored guidance for tech companies, IoT manufacturers, and financial institutions on achieving compliance in a cost-effective, phased manner.
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