CMMC
DoD certification framework protecting FCI and CUI
Basel III
Global framework for bank capital, leverage, and liquidity standards
Quick Verdict
CMMC certifies cybersecurity for DoD contractors protecting FCI/CUI via tiered assessments, while Basel III mandates capital/liquidity standards for banks to ensure financial stability. Defense firms adopt CMMC for contracts; banks implement Basel III to avoid regulatory penalties and enhance resilience.
CMMC
Cybersecurity Maturity Model Certification (CMMC) 2.0
Key Features
- Three tiered levels aligning to data sensitivity risks
- C3PAO third-party certifications verifying Level 2 compliance
- Direct mapping to 110 NIST SP 800-171 controls
- Mandatory flow-down requirements across DIB supply chains
- POA&Ms with strict 180-day closure timelines
Basel III
Basel III: Finalising post-crisis reforms
Key Features
- Higher CET1 capital minimums and conservation buffers
- Non-risk-based leverage ratio as backstop
- Liquidity Coverage Ratio for 30-day stress survival
- Net Stable Funding Ratio for funding stability
- Enhanced Pillar 3 disclosures for RWA comparability
Detailed Analysis
A comprehensive look at the specific requirements, scope, and impact of each standard.
CMMC Details
What It Is
Cybersecurity Maturity Model Certification (CMMC) 2.0 is a U.S. Department of Defense (DoD) certification program ensuring cybersecurity protections for Federal Contract Information (FCI) and Controlled Unclassified Information (CUI) across the Defense Industrial Base (DIB). It employs a tiered, verification-based model with three cumulative levels to match risk levels.
Key Components
- **LevelsLevel 1 (17 FAR 52.204-21 practices), Level 2 (110 NIST SP 800-171 Rev 2 practices), Level 3 (+24 NIST SP 800-172 enhancements).
- 14 domains like Access Control, Incident Response, Risk Assessment.
- Assessments via self (Levels 1/2), C3PAO (Level 2), DIBCAC (Level 3).
- POA&Ms limited to 180 days; reported to SPRS/eMASS.
Why Organizations Use It
- Mandatory for DoD contract awards, preventing ineligibility.
- Builds supply chain trust, reduces cyber risks, cuts incident costs.
- Provides competitive edge, operational resilience, reputation boost.
Implementation Overview
Phased: governance, scoping/gaps, remediation, assessment, sustainment. Targets DIB contractors/subcontractors; SMEs use enclaves. Requires SSPs, evidence; 3-year validity with annual affirmations.
Basel III Details
What It Is
Basel III is the global prudential regulatory framework issued by the Basel Committee on Banking Supervision (BCBS) following the 2007-2009 financial crisis. It strengthens bank resilience by enhancing capital quality and quantity, introducing leverage and liquidity constraints, and improving risk measurement comparability. The approach integrates risk-weighted assets (RWA) with non-risk-based metrics in a three-pillar structure.
Key Components
- **Pillar 1Capital ratios (CET1 4.5%, Tier 1 6%, Total 8% of RWA), buffers (CCB 2.5%, CCyB, G-SIB/D-SIB), leverage ratio (3%), LCR (100% HQLA for 30-day stress), NSFR (stable funding over 1 year).
- **Pillar 2Supervisory review process (ICAAP, stress testing).
- **Pillar 3Granular disclosures (RWA templates, leverage exposures). No fixed number of controls; focuses on minimum standards with output floor in finalisation reforms.
Why Organizations Use It
Mandatory for internationally active banks via national laws; reduces systemic risk, constrains leverage, improves liquidity resilience, and boosts market discipline. Enhances funding costs, investor confidence, and strategic balance-sheet management.
Implementation Overview
Phased enterprise program: gap analysis, data/system builds, model validation, governance setup. Targets large banks globally; requires ongoing reporting, no certification but RCAP assessments. (178 words)
Key Differences
| Aspect | CMMC | Basel III |
|---|---|---|
| Scope | Cybersecurity for FCI/CUI protection | Bank capital, leverage, liquidity standards |
| Industry | Defense contractors, DIB organizations | Internationally active banks globally |
| Nature | Tiered certification program, mandatory for DoD | Prudential standards, implemented nationally |
| Testing | Self/C3PAO/DIBCAC assessments every 3 years | Supervisory review, ICAAP, Pillar 3 disclosures |
| Penalties | Contract ineligibility, debarment | Fines, asset caps, business restrictions |
Scope
Industry
Nature
Testing
Penalties
Frequently Asked Questions
Common questions about CMMC and Basel III
CMMC FAQ
Basel III FAQ
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