MSPs Need Cyber Partners To Turn Compliance Into Strategy

The single greatest risk that MSPs face is around security and compliance. That’s because their clients are feeling intense pressure. An Australian Institute of Company Directors (AICD) report found that cyber risk was the number one priority for business leaders, and that executives expect risk and security issues will worsen in severity this year.

Those organisations are looking to their tech partners to provide leadership and strategy in addressing the challenges and meeting compliance obligations.

For forward-thinking MSPs, the changing compliance landscape will seem like an opportunity rather than a burden. There are more than 20 compliance frameworks that currently apply across various industries, data types, and operational contexts in Australia. Furthermore, the pace of regulatory change in Australia's cyber landscape has accelerated dramatically. The Privacy Act now proposes a 'fair and reasonable' test alongside enhanced security obligations under APP 11. SMB1001 introduces specific expectations for small businesses, while SOCI Act amendments have broadened risk obligations across critical infrastructure sectors.

All of this is an opportunity for the MSP that can cut through the complexity and deliver solutions and strategic guidance on how to remain on the right side of compliance.

As an example of how dynamic compliance can be, the new Cyber Security Act includes measures to:

• Mandate minimum cyber security standards for smart devices
• Introduce a mandatory ransomware and cyber extortion reporting obligation for certain businesses to report ransom payments
• Introduce a Limited Use obligation for the National Cyber Security Coordinator to encourage industry engagement with the government following cyber incidents
• Establish a Cyber Incident Review Board to conduct reviews of significant cyber incidents and share lessons learned

This puts new obligations over smart devices and the response to ransomware that make both a more significant risk that businesses need to manage differently going forward.

So, yes, while all of this is a significant opportunity for the MSP here, it is only if the MSP also has the capabilities and resources to answer the questions and execute.

"Many MSPs feel pressure to provide security answers but lack the risk or policy expertise to do so confidently," Sarah McAvoy from CyberUnlocked, a leading security consultancy that partners with MSPs, said. "We help fill that gap without undermining MSP trust relationships."

By taking a compliance-led advisory approach, MSPs can elevate conversations with clients from discussions about infrastructure to strategic dialogues about risk resilience. This shift positions the MSP as a true business partner rather than merely a technology provider.

MSPs already enjoy trusted relationships with their clients on technology matters. However, this trust can erode if they can't clearly explain or operationalise compliance requirements – especially those stemming from the Cyber Security Act and Strategy's enhanced obligations.

CyberUnlocked works behind the scenes with MSPs to offer specialised security services that complement existing technology offerings:

• Penetration testing to identify vulnerabilities before malicious actors can exploit them (learn more about CyberUnlocked's expert penetration testing here)
  
• Policy development aligned with relevant compliance frameworks
• Comprehensive security assessments that map to regulatory requirements
• Board-level advice that translates technical concepts into business language

This partnership approach allows MSPs to extend their capabilities without expanding their liabilities or overhead costs. "When an MSP client faces a board-level question about their SOCI Act obligations, supply chain risk or needs to demonstrate compliance for cyber insurance renewal, having a specialist partner allows the MSP to deliver value without overextending,” Sarah McAvoy said.

From Reactive to Proactive: Navigating Regulatory Change

"Our MSP partners tell us that confidence is the key differentiator," Sarah McAvoy said. "When they can confidently explain how a recommendation aligns with the client's regulatory obligations, clients see them as more strategic and authoritative."

This partnership model that CyberUnlocked offers delivers practical benefits beyond regulatory checkbox exercises:

• Risk-appropriate recommendations: Security controls aligned to specific business contexts rather than generic best practices
• Board-ready communications: Translating technical concepts into business language for executive stakeholders
• Competitive differentiation: Moving beyond infrastructure to provide compliance-led advisory services
• Supply chain assurance: Helping clients meet increasingly rigorous vendor security requirements
• Cyber insurance support: Providing the documentation and evidence insurers demand during application or renewal processes

As Australia's cyber requirements continue to evolve under the broad Cyber Security Strategy and government agenda, MSPs that embrace specialist partnerships position themselves not just as technology providers but as strategic advisors guiding their clients through an increasingly complex risk landscape.

By transforming compliance from a defensive necessity into an offensive business strategy, MSPs can align security frameworks with client growth objectives and risk appetites, creating value that extends far beyond basic technical support.

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