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An important report on the state of UK cybersecurity and actions that UK firms need to take to implement cybersecurity. The UK and EU is heading towards a cyber standards and regulatory problem, that is being driven by the US and its cybersecurity regulatory programs. UK and EU companies are already regulated by the US, DoD DIB Prime contractors are required to comply with DFARS 252.204-7012, 7019 and 7020 that require cybersecurity compliance to NIST SP 800-171. Requirements that are flowed down to their subcontractors, that can include UK, EU companies. The SEC recently published cybersecurity proposals, requiring public companies to implement cybersecurity risk management, board governance and incident disclosure and a range of further legislation is being planned as CISA starts to take over cybersecurity oversight.
The US is backing these regulations with enforcement programs. Through the DoJ’s Civil Cyber fraud initiative using the False Claims Act, and their whistleblower program. That I am informed by US legal colleagues does not have ‘safe harbour’. Shareholder actions are also actively focused on boards and failures in cybersecurity management. Targeting executives directly (SolarWinds).
One issue UK and EU companies will face is the implementation of US cybersecurity standards. As the US DoD CMMC and DFARS programs demonstrate, requiring the implementation of over 110 cybersecurity practices. The cost of compliance will be more than that required for cyber essentials and in the case of DoD requirement, could result in failing to be awarded a contract with the DoD. In the case of the SEC, reporting cyber compliance levels and board cyber competence to capital markets and investors.
What is all of this going to mean for UK and EU companies and their commercial relations with the US, that is regulating cybersecurity and supply chain risk management? An additional cost of doing business or the implementation of cybersecurity at a time when cyber is the biggest non-financial risk organisations face?
Ted Dziekanowski
#cyberrisk #cybersecuirty #sec #dod #cmmc #cyberregulation #compliance #cyberstandards
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