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Cyprus Warns Smaller Firms Will Bear The Brunt Of Europe’s New Cyber Resilience Rules

Cybersecurity Is Becoming A Product Requirement, Not An Add-On

Cypriot manufacturers and software developers are entering the most demanding phase of Europe’s new cybersecurity regime, Research Deputy Minister Nicodemos Damianou said this week, as the first obligations under the European Union’s Cyber Resilience Act (CRA) begin to take effect and smaller firms confront the practical challenge of compliance.

Addressing the Cyprus government and industry audience at the “Building CRA Compliance through Horizontal Cybersecurity Standards” conference in Nicosia, Damianou used an unusual example to explain why the CRA reaches far beyond the traditional technology sector: a fish tank.

A few years ago, he said, attackers gained access to a casino’s network through a smart thermometer installed in its lobby aquarium, then moved through the system until they reached the high-roller database.

“Nobody who bought that thermometer thought they were making a decision that affected cybersecurity,” Damianou said. “That is precisely the point.”

The CRA, he argued, marks a structural shift. For the first time, security is becoming a property of the product itself — designed in from the outset, maintained throughout the support period and placed squarely on the manufacturer rather than the customer.

The casino incident is not new, but the lesson has become harder to ignore as connected components spread across household appliances, industrial equipment and software. The attack surface is no longer confined to obvious digital products; it now extends to almost anything with a network connection.

AI Agents Add A New Layer Of Risk

Damianou also pointed to newer threats posed by autonomous artificial intelligence agents, citing recent incidents involving OpenAI, Hugging Face and Anthropic.

OpenAI said in August that, during cybersecurity evaluations in July, internal research models bypassed controls intended to isolate them from the internet, exploited vulnerabilities and accessed parts of Hugging Face’s systems. Anthropic has separately reported cases in which Claude models reached the internet during security evaluations and gained unauthorized access to real-world systems.

For Cyprus, Damianou said, the implications are especially significant because of the island’s reliance on connected infrastructure and international supply chains.

“As an island member state, Cyprus is fully cognizant of the consequences,” he said.

From Legislation To Operational Compliance

The remarks come as the CRA moves from legislative adoption to day-to-day compliance.

Since September 11, manufacturers have been required to report actively exploited vulnerabilities and severe security incidents affecting products with digital elements through the European Union’s reporting arrangements overseen by ENISA, the EU Agency for Cybersecurity.

The regulation’s full essential requirements will apply from December 11, 2027.

For Damianou, the more difficult issue is not the principle of compliance, but the mechanics of implementation.

“A regulation tells you what must be achieved. It does not tell a twelve-person company in Lemesos how to achieve it. That is the job of standards,” he said.

European standardization bodies CEN, CENELEC and ETSI are developing harmonized standards intended to help companies meet the CRA’s requirements.

The horizontal standards discussed in Nicosia are designed to apply across categories of digital products, covering secure product design, risk management, vulnerability handling, access management, encryption and security across the full product lifecycle.

Rather than forcing manufacturers to interpret the legislation separately in each EU country, Damianou said the standards should provide “one clear, recognized route to compliance, instead of twenty-seven interpretations of the same article.”

That makes them far more than a technical exercise, he added, placing the work “on the critical path of the end-to-end cybersecurity value chain.”

Why Smaller Businesses Matter Most

Damianou said his main concern in Cyprus is the burden on smaller companies.

“Most Cypriot manufacturers and software developers do not have a compliance department,” he said, arguing that for such firms “a practical, accessible standard is the difference between compliance as a burden and compliance as a competitive advantage.”

The CRA, he added, should be understood not only as cybersecurity legislation but also as a Single Market measure. A company that develops a secure, compliant product should be able to place it across the European market without having to adopt a different approach in each member state.

That point fed into a broader concern about Europe’s strategic position in technology.

Damianou said Cyprus had made cyber resilience one of the three digital priorities of its six-month Presidency of the Council of the EU, which ended in June, alongside efforts to strengthen Europe’s ability to develop and secure its own technologies.

During the presidency, Cyprus advanced work on the revision of the Cybersecurity Act, including proposals for a stronger ENISA and simpler certification procedures, and brought the file before the Telecom Council in June.

It also hosted Europe’s cybersecurity certification community, while work on the Digital Omnibus, including plans for a single entry point for incident reporting, has since moved to the Irish Presidency.

Not every file was completed during Cyprus’ six months at the helm, Damianou acknowledged, but the underlying message remained unchanged.

“Europe cannot afford to be merely a regulator of technologies developed elsewhere,” he said.

Cyprus Tries To Lead By Example

Cyprus is also working to strengthen its own internal arrangements before the CRA applies in full.

Damianou said the Digital Security Authority is central to the country’s preparations, while the Council of Ministers this summer approved, for the first time, a unified cybersecurity policy framework covering the government and the wider public sector.

“We cannot ask manufacturers to lock their products while leaving our own doors open,” he said.

For Damianou, the larger objective behind the rules, reporting requirements and standards is more straightforward than the legislative architecture suggests.

“The huge task at hand is at the end of the day to build products people can trust from a cybersecurity perspective,” he said. That applies, he added, “right down to the thermometer in the fish tank.”

AI In Practice Brings Business Leaders Together To Learn, Unlearn And Relearn

AI in Practice: Changing the Future of Business takes place on Monday, 19 October 2026, at the Cultural Center of European University Cyprus in Nicosia, under the auspices of the Chief Scientist of Cyprus, Demetris Skourides.

Organised by Panis.News with co-organisers GrantXpert Consulting and Future Skills Hub at European University Cyprus, the event will bring together founders, SME owners and senior executives to examine practical uses of artificial intelligence.

The evening runs from 18:00 to 22:30. Tickets will be available until 12:00 noon on Monday, 19 October, Cyprus time.

For business leaders, the challenge is deciding where AI can deliver results. The programme will explore how to identify useful applications, prepare teams and connect technology investment with business needs. Demonstrations, case studies and direct questions to speakers will help attendees assess their next steps.

Panis Pieri, Founder of Panis.News, said:

“Business leaders need space to ask questions, challenge assumptions and learn from people applying AI. We created AI in Practice to make that conversation accessible and useful. We want attendees to leave with a clearer idea of what they can do next in their own businesses.”

Dr Celia Hadjichristodoulou, Founder and Managing Director of GrantXpert Consulting and Future Skills Hub, said:

“Working out where AI belongs in your business takes real thought about your customers, your processes and your people.”

AIA.Labs supports the event as the Gold Partner. Its founder, Sotiris Makrygiannis, said:

“In the 70s we learnt how to punch a card to go to work or program a timesharing computing machine, in the 80s the personal PC and office tools, in the 90s the modem and basic internet, in the 2000s mobile internet plus web shopping, and by 2010 the mobile apps. Now it’s time to learn how to practically use AI and that alone is the most disruptive thing an individual can do today. We are happy to sponsor the event because theory needs a practical application.”

The Agenda

– 18:00–18:30: Registration and networking.

– 18:30–18:50: Welcome remarks from Panis Pieri, Dr Celia Hadjichristodoulou and EUC Rector Professor Loizos Symeou.

– 18:50–19:00: Interview with Chief Scientist Demetris Skourides.

– 19:00–19:20: The AI Revolution. Why should you care? by Monica Odysseos, Head of AI and Data Lab of Grant Thornton.

– 19:20–19:40: From Business Pain Points to AI Transformation: A CEO’s Roadmap to Real Results by George Malekkos, CEO of POWERSOFT Computer Solutions & AI-Driven Business Transformation Architect & President of CITEA.

– 19:40–20:20: AI and the Future of Business: Will Your Business Be Here in 2030? by Paris Thomas, Executive Advisor on AI & Strategy, Founder at Rapid Visual / Strapivo

– 20:20–21:00: Questions and answers with the speakers.

– 21:00–22:30: Networking over drinks and bites.

The Challenge

The evening’s programme approaches the challenge from three directions.

Monica Odysseos will begin with a question that deserves a clear answer: why should you care?

Her session will explore how AI is changing the way people work, make decisions and create. Her background spans software development, accounting and applied AI, bringing both technical and business perspectives to the discussion.

George Malekkos will then examine how business problems can become starting points for AI adoption.

Where does your company lose time? Which processes cause delays? Where could you improve the customer experience?

His presentation will look at selecting useful applications, preparing teams and processes, and measuring results. For a business owner deciding where to begin, that connection between a specific problem and a measurable outcome matters.

Paris Thomas will take the discussion further with his keynote, “AI and the Future of Business: Will Your Business Be Here in 2030?”

It is a challenging question. It asks leaders to look beyond today’s workload and consider how their products, services and business models might need to change.

His hour-long session will include live AI demonstrations and enterprise case studies. It will explore how leaders can improve their current business while developing new opportunities and preparing for longer-term change.

The Event

The event will be in English.

The full programme and to book your tickets, visit: https://luma.com/ai-in-practice-cyprus

The organisers thank:

  • Silver Partners Growth Hacking Cyprus, RSEVEN, Mel’s Digital and Makkas Winery.
  • Supporters: Cyprus Computer Society, XValley Tech, Business Society Accelerator, Startup School Cyprus and Carierista.
  • Community Partners: EIT Community Hub Cyprus, CYENS, Women in Tech, Startup Greece, ECECT, CITEA, IET Cyprus and Cyprus_IT

Follow updates about the event on social media at #PanisMeetups

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