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Cyber Readiness Becomes the New Gateway to Canada’s Defence Market

Canada's planned defence investment is a once-in-a-generation opportunity -- but to take part, businesses need to be cyber ready. Image source: https://www.pwc.com/ca/en/today-s-issues/cybersecurity-privacy-and-financial-crime.html

Canada's planned defence investment is a once-in-a-generation opportunity -- but to take part, businesses need to be cyber ready. Image source: https://www.pwc.com/ca/en/today-s-issues/cybersecurity-privacy-and-financial-crime.html

As Canada accelerates its investment in national defence modernization, a new reality is emerging for companies hoping to secure a place in the country’s growing defence supply chain: cybersecurity readiness is no longer optional.

Beginning in summer 2026, Canadian businesses bidding on defence contracts will need to comply with the Canadian Program for Cyber Security Certification (CPCSC), a new mandatory certification framework jointly led by Public Services and Procurement Canada (PSPC) and the Department of National Defence (DND), in collaboration with the Canadian Centre for Cyber Security (CCCS).

In response to the coming shift, PwC Canada has launched its CPCSC Readiness and Advisory Service, aimed at helping organizations navigate the certification process and maintain eligibility for defence procurement opportunities.

Modelled on the U.S. Department of Defense’s Cybersecurity Maturity Model Certification (CMMC) program, the CPCSC establishes baseline cybersecurity requirements for contractors handling sensitive but unclassified defence information. With certification requirements expected to appear in DND solicitations this year, suppliers face increasing pressure to assess and strengthen their cyber posture before deadlines arrive.

Organizations that fail to achieve the required CPCSC level risk losing eligibility for both existing and future defence contracts — a potentially significant blow as Canada expands defence spending and industrial participation opportunities.

“Canada’s planned defence investment is a once-in-a-generation opportunity — but to take part, businesses need to be cyber ready,” said John Proctor, Partner, Cybersecurity, Privacy & Financial Crime & Cyber Defence Sector Leader, PwC Canada. “We’re making it easier for Canadian companies to meet CPCSC requirements by breaking complex cyber rules into clear, practical steps — so they can qualify to bid and grow with this market.”

PwC Canada’s new advisory service is designed to help businesses determine the scope of their CPCSC obligations by identifying affected contracts, business units, and data flows. The offering also includes readiness assessments, remediation planning, certification preparation, and guidance on strengthening supply chain trust.

The firm says the service is particularly focused on supporting small and medium-sized enterprises (SMEs), many of which may face resource and expertise challenges as the defence sector’s cybersecurity expectations evolve.

“Canada’s defence spending ambitions represent a significant opportunity for Canadian businesses, but participation in this market will increasingly depend on being cyber ready. As CPCSC requirements become mandatory, organizations across the defence supply chain, especially SMEs, will need to act now to understand their obligations, build resilience and position themselves to compete. Our goal is to help clients navigate this shift, with confidence, so they can protect their eligibility for contracts, and play a meaningful role in strengthening Canada’s defence industrial base,” said Laura Wood, Partner and Government Defence Leader, PwC Canada.

PwC Canada’s multidisciplinary approach combines expertise in cybersecurity, defence, digital trust, internal controls, risk management, and regulatory compliance — areas that are becoming increasingly interconnected as governments place greater emphasis on supply chain resilience and secure procurement.

The launch also aligns with broader federal efforts to expand and strengthen Canada’s domestic defence industrial base, ensuring more Canadian companies can participate in future procurement programs while meeting modern security standards.

“This isn’t just about checking a box; it’s about helping businesses turn cybersecurity from a risk into a competitive advantage,” said Asif Qayyum, Partner, Cybersecurity risk, Controls & Compliance, PwC Canada. “By integrating our deep cybersecurity and regulatory knowledge with our defence sector expertise, we are helping clients embed security into their operations and differentiate themselves from competitors.”

As defence procurement increasingly ties eligibility to cybersecurity maturity, CPCSC compliance is poised to become a defining requirement for companies seeking long-term access to Canada’s evolving defence market.

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