The costs related to CMMC certification
CMMC certification is an entirely new requirement for businesses, and the total costs that companies will incur on CMMC certification are still being determined. The CMMC certification costs will differ by level of certification and possibly be recurring. The difference in costs will be because of the scope of activities required by each certification level. The financial resources and the amount of time the company may be needed to invest in executing the cybersecurity protocols are also reflected in the cost. Organizations that have level 1 and level 2 certifications will be required to recertify every three years. Businesses that require CMMC cybersecurity and have level 3 certification will have to recertify every 2 years. And organizations with level 4 and level 5 certifications need to certify every year.
However, CMMC certification cost is not prohibitive but reimbursable, which is good news for the contractors. CMMC certification cost can be billed to DoD and is an “allowable cost.” This is also good news for the companies facing difficulties in meeting the CMMC compliance requirements as the remediation costs are also considered “allowable expenses.” Nevertheless, the initial cost of meeting the standards of compliance for the level of CMMC is not covered in this. It is straightforward to figure out how much non-certification is going to cost a business. There are penalties set down for not complying with these standards, and these penalties may also apply to CMMC non-compliance. As of now, CMMC non-compliance can lead to civil and criminal litigation with other penalties and fines levied against your business. The DoD will terminate the contract, and the company is confined from bidding on other projects if the contractor is out of compliance and the CUI is breached.
Here are a few penalties an organization could face:
- An organization can face government hearings which depends on the severity of the breach of cybersecurity.
- When the news of a cybersecurity breach goes public, the company’s image will be damaged, which can sometimes be beyond repair.
- A business can lose federal funding, which can be a small amount or the majority of its income.
- An organization can get restricted from further government contracts.
These penalties on your business affect it directly or indirectly. No matter what you are penalized with, the bottom line is, your business will suffer. Small businesses may not be able to handle the financial consequences of a cybersecurity breach. Organizations can avoid the penalties and fines which follow CMMC non-compliance simply by maintaining and implementing proper cybersecurity protocols. Suitable cybersecurity protocols will prevent the cost of one set, but there are the costs of meeting the standards of CMMC. Companies should stay up to date with the latest CMMC costs and guidelines information. You can also cut the cost of hiring a third party to execute the required cybersecurity protocols by completing the organization’s technical steps. Ultimately, the companies that have proper cybersecurity protocols in the current times will find it easier to meet the new standards of CMMC.