Why Arco Supports Everything Outlined Below
Arco exists to help MSPs and MSSPs move from activity-based reporting to defensible, evidence-led assurance. The Cyber Security and Resilience Act places new expectations on service providers in 2026, and the common challenge we see is not a lack of capability, but a lack of clear, credible proof that protections work.
Arco solves this by giving MSPs a structured way to measure control effectiveness, surface gaps early, and generate board-ready assurance without additional manual effort. Our platform unifies identity, asset, vulnerability, and backup telemetry into outcome-focused metrics that customers, insurers, and regulators recognise as evidence. This supports providers in meeting the Act’s requirements, strengthening client trust, and safeguarding renewal and annuity revenue.
Everything in the article below reflects what Arco helps MSPs deliver every day: clarity, confidence, and proof that their services keep customers protected.
As we move through 2026, the Cyber Security and Resilience Act is no longer something MSPs and MSSPs are preparing for. It is active, enforced, and used as a benchmark for assessing the resilience of managed service supply chains.
For providers, the message is clear: your customers cannot stay compliant unless you can prove your services are resilient. The Act recognises that MSPs sit at the centre of operational stability, and regulators now expect evidence from you as well as your customers.
Below is a clear breakdown of what the Act means this year, and the steps MSPs must take to protect revenue, renewals, and reputation.
Why MSPs and MSSPs are firmly in scope in 2026
2026 is the first full year in which expectations are applied at scale. Regulators, insurers, and customers all agree on one point:
Resilience cannot be outsourced without evidence.
If you manage identity, endpoint, cloud, patching, backups, monitoring, or incident response on behalf of a customer, you are now part of their regulated boundary. This means:
Service providers are no longer peripheral. You are included directly in customer assurance checks.
The clause that should make MSPs stop and think
2026 marks the enforcement of the Act’s critical dependency accountability clause. MSPs must now show the effectiveness of any control they materially operate.
This includes:
The emphasis is on effectiveness, not effort. Regulators want proof that protections work and that gaps are surfaced, managed, and improving.
The outdated mindset that creates risk
Many MSPs still see resilience as the customer’s responsibility.
In 2026, that is commercially dangerous.
Customers must provide proof of resilience for:
If you cannot provide the evidence they need, they will move to a provider who can.
There is also the risk of:
Where MSPs still struggle to prove resilience
The most common issues in 2026 are:
1. Identity
Gaps in MFA coverage, stale accounts, and unclear privileged access.
2. Asset visibility
Tools show output but not coverage or completeness.
3. Vulnerability performance
Scan results exist, but SLA performance and drift are not evidenced.
4. Backup and restore
Backups run, but restore tests lack documentation or repeatable evidence.
5. Reporting gaps
Evidence is manual and inconsistent, often built from spreadsheets.
These are not technical limitations. They are evidence limitations.
What regulators and insurers mean by “credible evidence” in 2026
Evidence must now be:
Credible evidence includes trend lines, exception surfacing, SLA performance, and factual, defensible proof.
It does not include PDF exports, manual collation, or isolated tool dashboards.
Actions MSPs Must Take in 2026
Here are the steps providers should take now to remain competitive and avoid regulatory pressure.
1. Build a repeatable assurance model for every customer
Move from activity reporting to defensible proof. Your assurance layer should include:
This reduces manual work and meets expectations for regulated clients.
2. Standardise how resilience is measured across your services
Define internal standards for:
Each standard should clearly state:
3. Deliver a Baseline Assurance for every new and existing client
A four-week, high-impact engagement that:
This builds trust and reduces renewal friction.
4. Switch from quarterly reports to continuous evidence
Quarterly summaries no longer meet regulatory requirements.
Move to:
5. Add white-labelled resilience reporting to all service tiers
Customers expect reporting they can pass directly to executives. Include:
This is now a major differentiator in competitive tenders.
6. Ensure your own internal controls can withstand customer or regulatory review
2026 is the first year MSPs are themselves inspected by customers and insurance assessors.
You should be able to evidence:
Your customers must prove you are resilient. Make that straightforward for them.
Final Thought
2026 is the year MSPs move from service delivery to service accountability. The Act demands managed assurance, not just managed services.
Providers who adopt evidence-led, outcome-ready operating models will:
Providers who rely on activity reports will lose ground quickly.
Here is a concise CTA you can drop at the end of the post:
If you want to deliver provable resilience for your customers and meet the expectations of the Cyber Security and Resilience Act, Arco can help. Contact us to see how our outcome-led platform supports MSPs and MSSPs with clear evidence, continuous assurance, and board-ready reporting.
Get in touch: hello@arcocyber.com