Cyber Insurance Blog

What’s Inside the White House's Proposed Cyber Security Regulations?

What’s Inside the White House's Proposed Cyber Security Regulations?

In March 2023, the White House proposed a new cyber security strategy in an effort by the U.S. government to strengthen its cyber defenses amid a steady increase in hacking and digital crimes targeting the country.

Under the proposed strategy, all private companies would be required to participate in more stringent cyber security measures. However, it promised to support the development of a framework for cyber security regulations and incentivize private companies to proactively address critical vulnerabilities.

Let’s take a closer look at the details of this proposed strategy and how it will affect your business clients.

What Businesses Need to Know About the National Cyber Security Strategy

Employee checks cyber network for issues via computer monitor.The Biden-Harris Administration’s strategy aims to protect U.S. investments in rebuilding infrastructure, developing the clean energy sector, and re-shoring the technology and manufacturing base. The 39-page document outlined five pillars for improving the nation’s resilience against cyber attacks:

  • Pillar 1: Defend Critical Infrastructure—Expand and modernize cyber security measures in the public and private sectors to better protect critical infrastructure and essential services.
  • Pillar 2: Disrupt and Dismantle Threat Actors—Use all available resources to dismantle malicious cyber actors capable of threatening U.S. national security or public safety.
  • Pillar 3: Shape Market Forces to Drive Security and Resilience—Shift more responsibility to those in the digital ecosystem who are best positioned to mitigate risks, such as large corporations and cyber security software companies.
  • Pillar 4: Invest in a Resilient Future—Invest in more research and development for next-generation technologies to ensure that the U.S. remains at the forefront of innovation in cyber security.
  • Pillar 5: Forge International Partnerships to Pursue Shared Goals—Leverage multinational coalitions and alliances to combat threats to the digital ecosystem.

Prior directives that increased cyber security standards for U.S. government agencies and their contractors, as well as pipeline operators and transportation businesses, are also incorporated into the strategy.

Smiling ProWriters Agent sits in front of computer monitors at her workstation.How Will the New Cyber Regulations Affect Businesses?

Adhering to the new cyber security regulations begins with identifying the critical changes and how they’ll affect your business clients. Below are three key aspects of the strategy to consider:

1. Assess Vulnerabilities and Risks

Businesses will be required to take proactive measures to understand their threat landscape and identify vulnerabilities and risks in their operations.

As such, your clients must conduct formal vulnerability scans and penetration tests to find exploitable entry points. They’ll also need to properly evaluate third-party vendors and software providers to reduce the danger of supply chain attacks.

2. Implement Security Measures

Businesses must implement preventive measures that address detected supply chain vulnerabilities. This may include providing regular security training for employees, incorporating anomaly-detection tools, and patching known exploits. Moreover, a comprehensive response plan should be in place to reduce the damage that could occur from hacks.

The National Cyber Security Strategy promised to help the private sector by sharing information and providing practical guidance and support for combating cyber threats. Your clients should take full advantage of this assistance.

3. Customize Security Measures

There is no all-encompassing business cyber security solution. As such, your clients may need to customize their security to meet their specific needs. Taking this step can dramatically reduce their exposure and risks. However, they’ll still need to implement the basics, such as defense-in-depth or zero-trust access control, patching and update maintenance, and security monitoring.

How ProWriters Can Help Businesses Meet Impending Cyber Regulations

The White House’s cyber regulations are not expected to hit the books for another year, which gives businesses ample time to prepare. However, while all sectors are expected to be affected by the impending cyber security laws and regulations, tech companies have an arguably greater responsibility. That’s because Biden’s plan would make software companies responsible for hacks.

The plan would make the marketplace for Tech E&O insurance even tougher, as providers are rejecting clients with product or service liabilities that have a history of being hacked due to poor cyber crime regulations and standards.

ProWriters can help your tech clients do an aggregated analysis to identify vulnerabilities in the software they sell and distribute to reduce risk to their customers. ProWriters can also help them find the right coverage to handle Tech E&O claims. To learn more, schedule a call with us today.

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