As the CFO or CEO guiding financial strategies in government contracting, staying ahead of evolving cybersecurity regulations is paramount. The Department of Defense (DoD) is implementing significant updates to the proposed rule for the Cybersecurity Maturity Model Certification (CMMC), signaling a critical shift in the requirements for future government engagements.

A notable disparity in confidence levels exists within organizational teams: while the tech team’s readiness confidence stands at around 30%, executives such as CFOs and CEOs express confidence levels as high as 87%. This contrast underscores the critical nature of the situation, particularly given the potential personal liability of up to $3.4 million and the risks to EBITA and organizational integrity.

This isn’t just about compliance; it’s a strategic imperative for financial stability and sustained success. The proposed CMMC changes demand a holistic approach where financial leaders bridge confidence gaps within their teams and proactively address risks associated with non-compliance and potential financial liabilities. It’s about fortifying financial resilience amid heightened regulatory scrutiny, moving beyond procedural adaptation to ensure enduring operational success.

Consider recent legal precedents like Penn State University’s case under the False Claims Act (FCA) in 2023, illustrating the severe consequences of non-compliance and false attestations. Falsifying documents, misleading attestations, or mishandling sensitive information can lead to substantial legal risks, financial penalties, and reputational damage, jeopardizing long-term success in government contracting.

 

The Impact of CMMC

CMMC mandates stringent information protection for defense primary contractors, secondary subcontractors, and other organizations. With the October 2025 compliance deadline approaching, understanding and preparing for these changes is not just beneficial but imperative for maintaining information security, operational success, and securing new revenue contracting opportunities.

Key Considerations

In December 2023, the DoD initiated a 60-day comment period for a proposed CMMC rule, signifying profound implications for federal contracting. Proactive understanding and preparation for these changes are crucial for navigating an increasingly regulated environment and maintaining competitiveness.

Cost Implications. 

Proposed provisions such as self-assessments and streamlined compliance assessments for specific levels offer potential cost reductions impacting budgeting and planning. By investing in robust cybersecurity measures aligned with CMMC requirements, organizations can mitigate financial risks associated with data breaches and non-compliance penalties.

Legal and Operational Risks

Recent challenges under the FCA highlight the severe consequences of non-compliance, reinforcing the need for accurate, well-documented representations. Missteps can result in significant legal and financial penalties, necessitating meticulous compliance efforts and proactive risk management strategies.

ROI is Key

CFOs need a GRC Platform managed and administered by RPOs preparing for C3PAO audits. Omnistruct, with its Governance as a Service (GaaS) approach, sees risk and passing audits as financial health, ensuring audit readiness at the necessary time. 

This is not a one-time effort but continual compliance and governance at a fraction of the cost of a full-time equivalent in-house team, with offerings that fit all budgets.

 

Preparing for Compliance

Achieving and maintaining CMMC compliance requires a strategic approach that integrates technology, policy, and organizational culture. It’s crucial to assess current cybersecurity frameworks, identify gaps, and implement remediation measures aligned with CMMC’s evolving standards.

Organizations must also consider the cultural shift required to embed cybersecurity practices throughout all levels of the organization. This cultural transformation involves training staff, fostering a cybersecurity-aware culture, and ensuring ongoing compliance monitoring to adapt to regulatory updates effectively.

 

Next Steps

Prepare strategically by grasping proposed changes and aligning compliance efforts with upcoming deadlines. Proactive engagement and alignment with evolving standards are essential for securing government contracts and ensuring regulatory compliance.

Navigating the complexities of CMMC is not just about meeting regulatory requirements but safeguarding financial stability and long-term success in government contracting. By understanding the implications of CMMC updates, preparing early, and partnering with expert providers like Omnistruct, CFOs and CEOs can mitigate risks, enhance compliance, and position their organizations for sustainable growth in the evolving cybersecurity landscape.

As your dedicated Governance partner, Omnistruct offers comprehensive Governance as a Service (GaaS) solutions managed by experienced RPOs. We ensure continual compliance and governance at a fraction of the cost of in-house teams, preparing you for C3PAO audits and enhancing financial health through proactive risk management.