Enforcement Of Cybersecurity Requirements For Protecting Sensitive Information

Ed Combs
By Ed Combs
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Compliance is the backbone of trust and security in the electronics industry, especially when navigating the stringent requirements of military and defense contracts. The new Department of Defense program, CMMC (Cybersecurity Maturity Model Certification), raises the bar for those supplying this sector by emphasizing stronger cybersecurity practices across the supply chain. This shift means that businesses need to assess their current cybersecurity frameworks, invest in necessary upgrades, and implement ongoing monitoring to remain compliant and competitive in a highly regulated market. In this article, we’re sharing what you need to know about the Cybersecurity Maturity Model Certification, including what is CMMC compliance, why it matters, and more. 

As a recognized leader in the military, aerospace, and defense sectors, Peerless Electronics recognized the importance of this program early on and dedicated the resources necessary to achieve CMMC Level 2 Certification, underscoring our commitment to excellence in our industry and, most importantly, our customers.

Peerless Electronics completed a “Joint Surveillance Voluntary Assessment” (JSVA) in October 2024, achieving a perfect score of 110. This assessment was conducted by the DCMA Defense Industrial Base Cybersecurity Assessment Center (DIBAC) alongside a CMMC Certified 3rd Party Assessment Organization (C3PAO) for the CMMC program. This assessment confirms our adherence to the 110 cybersecurity requirements outlined in NIST SP 800-171. When the CMMC rule becomes effective on December 16, 2024, our JSVA will convert to a CMMC Level 2 certification which is valid for the next 3 years.

What is CMMC?

Cybersecurity Maturity Model Certification (CMMC) is a Department of Defense (DoD) program that enforces cybersecurity requirements to safeguard sensitive information referred to as Federal Contract Information (FCI) and Controlled Unclassified Information (CUI). The program requires an assessment of a Company’s cybersecurity environment using one of three CMMC model levels to determine its ability to protect DoD information. The CMMC rule was finalized on October 15, 2024, went into effect on December 16, 2024, and is expected to begin phasing into contracts in Q1 2025.

Cybersecurity Challenges Faced By Manufacturers

Electronics manufacturers face unique cybersecurity challenges as they continue to adopt advanced technologies like automation and cloud-based systems. While these innovations boost efficiency, they also create new opportunities for cyberattacks. Phishing schemes, ransomware, and intellectual property (IP) theft are increasingly prevalent, often exacerbated by outdated security protocols in legacy systems. The need for seamless data sharing across supply chains adds another layer of vulnerability, as a breach in one link can compromise the entire network. To date, few suppliers in the electronics supply chain are ahead of manufacturers in meeting CMMC requirements, highlighting the urgency for manufacturers to strengthen their cybersecurity protocols. To stay competitive and secure, especially when working with the DoD, manufacturers must close this gap by prioritizing robust, forward-thinking cybersecurity measures.

Why does CMMC Certification Matter?

Abstract hacker in a hoodie with a laptop on a dark technology background with code to illustrate cyber threats Abstract hacker in a hoodie with a laptop on a dark technology background with code to illustrate cyber threats

Cybercrime is a pervasive threat that impacts individuals, businesses, and governments worldwide. The frequency and sophistication of cyberattacks continue to grow and evolve, inflicting significant financial losses and reputational damage. For the DoD, the stakes are even higher, as cybercrime poses a direct threat to national security. CMMC Certification addresses this critical concern by enforcing consistent cybersecurity standards and safeguarding both suppliers and the DoD from IP theft and breaches that could jeopardize sensitive operations and defense infrastructure.

How Being Certified Makes Your Business More Resilient

As the electronics industry continues to embrace automation and data digitization, safeguarding information across the supply chain is fast becoming essential for long-term sustainability. Pursuing CMMC certification, whether or not you are a DoD partner, demonstrates a proactive commitment to robust information security for both classified and non-classified data. Establishing and maintaining comprehensive security protocols not only protects your business but also reinforces the entire supply chain's integrity. A single breach can have cascading effects, underscoring the importance of collective vigilance within the industry. By prioritizing certification and strong cybersecurity measures, businesses build trust, foster resilience, and lead by example in an increasingly interconnected sector.

How To Get a CMMC Certification?

Although most government-contracted electronics companies are familiar with NIST, CMMC requirements are not quite the same. While NIST SP800-171 outlines 110 security requirements that businesses must implement to safeguard sensitive data, it does not include a formal certification process. Instead, organizations are responsible for self-assessing their compliance with these standards. CMMC, on the other hand, builds upon NIST 800-171 by adding a certification component that requires third-party assessments to verify compliance.

There are several steps involved in securing CMMC Certification, depending on the desired level of compliance. CMMC level 2 certification, the level generally required by electronics suppliers and manufacturers handling CUI, encompasses implementing controls for access management, incident response, risk management, and data protection to safeguard CUI. However, these controls must be third-party assessed and approved to verify the organization's ability to consistently apply these practices, maintain secure systems, and address vulnerabilities.

What is CMMC Level 2?

Level 2 is the intermediate stage within the five levels of the Department of Defense’s (DoD) CMMC cybersecurity protection framework. This level is specifically designed for organizations that handle CUI and aligns with the 110 security controls outlined in NIST SP 800-171. To achieve CMMC Level 2 certification, companies must establish and demonstrate compliance with advanced cybersecurity practices, including implementing robust policies and procedures. These practices must include key controls such as access management, multi-factor authentication, and encryption to protect sensitive information. Additionally, CMMC Level 2 certified organizations are required to perform regular assessments, document compliance, and promptly address vulnerabilities to maintain a secure and resilient system.

How the DoD’s Introduction of CMMC 2.0 Changes Things

The DoD’s introduction of CMMC 2.0 embodies a significant shift in its approach to cybersecurity compliance. By streamlining the framework from five levels to three, CMMC 2.0 simplified the certification process while maintaining robust standards for protecting sensitive information. The updated framework aligns more closely with established standards like NIST SP 800-171 and provides clearer requirements and timelines for compliance. These changes help reduce costs and administrative burdens, making it more accessible for organizations to achieve and maintain certification. 

In an increasingly interconnected world, cybersecurity protection is essential, whether working with DoD contracts or not. Vendor trust is paramount, and companies must assume responsibility for upholding this trust by implementing rigorous cybersecurity measures. CMMC certification presents a clear, established protocol for safeguarding sensitive data, including Federal Contract Information (FCI) and Controlled Unclassified Information (CUI). By adopting these standards, organizations within the electronics industry not only protect their own systems but also contribute to the security and integrity of the broader supply chain. As cyber threats evolve, maintaining robust cybersecurity measures will be critical for staying competitive, compliant, and secure.