Entrepreneurs may incur millions in costs for equipment and license replacement

An entrepreneur could bear nearly a million zloty for replacing servers, computers, or the cost of software licenses.

Does the Ministry of Digitalisation know the cost of implementing changes in the law on the national cybersecurity system that entrepreneurs, including those from the SME sector, would have to bear?

This question is asked by Mr. Robert Składowski – President of the Federation to Mr. Krzysztof Gawkowski, Deputy Prime Minister, Minister of Digitalisation. At the same time, the Federation has prepared a report on the knowledge of proposed regulations by entrepreneurs. The report also covers issues concerning the costs of implementing changes in the law on the national cybersecurity system related to the waste management sector.

Summing up the report, the total costs associated with the need to replace equipment from a manufacturer recognized as a high-risk provider at one company can be estimated at 380,620 PLN in the first year, whereas over 5 years this amount can be 594,300 PLN.

Based on the data collected from surveys on potential costs of replacing hardware and software from high-risk providers, as well as costs related to service and technical support for newly purchased products from EU and NATO companies, it can be assumed that the estimated amount for one entrepreneur may be close to 900,000 PLN net in a five-year perspective.

For example, according to data contained in the Assessment of Regulatory Impacts for entities in the waste management industry, which will be influenced by the amending law, there are currently 276, which when multiplied by the financial value effect for one entrepreneur gives over 248 million PLN net. However, referring to the waste management sector from data held by the Federation, it turns out that there are over 8865 companies in Poland, of which over 1500 employ more than 50 employees, so the costs could be even higher.

However, to the question: Are you aware of the consequences for entrepreneurs of implementing the law amending the law on the national cybersecurity system presented by the Ministry of Digitalisation? 71.9% of entrepreneurs answered no, and only 28.1% knew about the consequences.

Author: Dr Marek Woch, Law Expert at the Federation Legislation Center, Entrepreneurs.pl