Cyber Security On President Obama’s Agenda

This article originally appeared on CyberInquirer

Faced with revitalizing a deteriorated economy, formulating a national budget, and the aftermath of Osama bin Laden's death, President Barack Obama has his hands full. Yet, in the midst of all the issues commanding the White House's attention, the Obama administration somehow has found time to address the threats to our nation's cybersecurity.

According to Business Insurance, on Thursday, May 12, 2011, the Obama administration proposed cybersecurity legislation to improve protection for individuals and the federal government's computer and network systems. The proposed legislation would address national data breach reporting by creating simpler and standardized reporting requirements for the 47 states that contain such requirements. The proposal would also synchronize penalties for computer crimes with other crimes. Additionally, the government, through the Department of Homeland Security, would become directly involved in assisting the industry as well as state and local governments in policing and enforcing cybersecurity. The proposed legislation encourages the state and local governments to share information with the Department of Homeland Security about cyberthreats or related incidents by providing them with immunity for doing so.

The proposal also "emphasizes transparency to help market forces ensure that critical infrastructure operators are accountable for their cybersecurity." As explained by the administration, "The administration proposal requires DHS to work with industry to identify the core critical infrastructure operators and to prioritize the most important cyberthreats and vulnerabilities for those operators."

While cybersecurity is of national significance and is clearly on the Obama administration's agenda, not all believe that the proposed legislation will operate as smoothly as it reads on paper. Several commentators have opined that the implementation of a national reporting standard would be complicated by both preemption and the divergence among the 47 state standards currently in place. At the same time, the scope of the proposed voluntary government assistance raises difficult questions.

Regardless, the administration's introduction of such proposed legislation underscores the national importance of cybersecurity for individuals as well as the federal government. Given the federal and state governments' recognition of the import and value of cyber insurance, we remain surprised that it continues to fly under the radar for companies (and their brokers) that could greatly benefit from the coverage provided.

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