Cybersecurity and compliance have evolved dramatically over the last decade, and so too has the relationship between Managed Service Providers (MSPs) and their clients. The days of MSPs promising to “handle everything” are over; in today’s regulatory environment, both parties must clearly understand and document their respective roles. This is where the Shared Responsibility Model (SRM) comes into play — a framework that defines how security and compliance duties are distributed between IT providers and their clients.

What Is the Shared Responsibility Model?

The Shared Responsibility Model is a formalized approach that delineates which security and compliance responsibilities are managed by the MSP and which remain with the client. Rather than assuming a blanket approach, the SRM breaks down each requirement — whether regulatory (like CMMC, HIPAA, or PCI) or based on best practices (such as NIST CSF or CIS Controls) — and assigns ownership for implementation, monitoring, and documentation.

Why Is SRM Essential for MSPs and Their Clients?

• Clarity and Accountability: The SRM eliminates ambiguity by specifying, for each security control or compliance requirement, whether the MSP has full, partial, or no responsibility. This prevents assumptions that could lead to security gaps or compliance failures.

• Regulatory Mandates: For frameworks like CMMC, having a documented SRM is not just best practice — it’s a requirement. Assessors expect to see clear evidence of how responsibilities are shared in the form of a Shared Responsibility Matrix or the less-often-used term: Customer Responsibility Matrix.

• Operational Efficiency: By mapping out responsibilities, MSPs can streamline their internal processes and reduce the risk of unexpected compliance burdens. Clients, in turn, know exactly what is expected of them, reducing friction and misunderstandings.

How Does the SRM Work in Practice?

A typical SRM is presented as the aforementioned matrix or table, listing all relevant controls or requirements alongside columns indicating whether the MSP, the client, or both are responsible. For example:

• Example 1: The MSP may provide a comprehensive security awareness training platform, but if the client’s employees do not participate or complete the training, the program is ineffective. Both parties have a role to play: the MSP supplies the tool, the client ensures engagement.

• Example 2: For access control, the MSP might manage the technical implementation, but the client must inform the MSP when an employee leaves so that access can be revoked promptly.

The MSP’s Role in the SRM

MSPs act as both service providers and compliance partners. Their responsibilities typically include:

• Implementing and managing technical controls (e.g., firewalls, backups, monitoring)

• Providing documentation, policies, and evidence for compliance audits

• Advising clients on best practices and regulatory requirements

• Maintaining a central management platform to track responsibilities across multiple clients

However, we all know that MSPs cannot assume total control. Clients must actively participate, or the entire system falls apart. The SRM ensures both parties are aligned, reducing the risk of gaps that could lead to breaches or failed audits.

Why the SRM Is a Differentiator

Adopting an SRM is not just about compliance; it’s a way for MSPs to demonstrate professionalism and build trust. By sitting down with clients to review the SRM, Managed Service Providers differentiate themselves from competitors, show a deep understanding of industry regulations, and provide a tangible roadmap for security and compliance.

Wrapping It Up

The Shared Responsibility Model is now a foundational element of any successful MSP-client relationship. It formalizes accountability and expectations while ensuring both parties work together to achieve necessary security and compliance outcomes. In a world of increasing threats and regulatory scrutiny, the SRM is not just a tool — it’s a necessity!