The enclosed Executive Order (EO) on ‘Ensuring Robust Consideration of Evolving National Security Risks by the Committee on Foreign Investment in…

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The enclosed Executive Order (EO) on ‘Ensuring Robust Consideration of Evolving National Security Risks by the Committee on Foreign Investment in the United States’ is an important read. It should be read for its impactions on U.S and potentially foreign supply chain security risks from direct or indirect foreign investment, that could threaten U.S national security through supply chain resilience.

The Committee of Foreign Investment will consider the national security risks that may arise from foreign investment involving a country of special concern that has a demonstrated or declared strategic goal of acquiring a type of critical technology or critical infrastructure that would affect United States leadership in areas related to national security.”

Cybersecurity risks are a significant focus of the EO. The Committee of Foreign Investments are to consider the impact of foreign investment on cybersecurity risks that could cause or exacerbate malicious activity, increase vulnerabilities, impact the security of the data belonging to U.S citizens, investments that could undermine the protection of data in storage or databases housing sensitive data, evaluate the cyber posture, practices, capabilities of foreign persons and U.S businesses that could impair national security as a result of a transaction.

There is attention paid in Section 2 (i) to the impact of foreign investment in U.S allies and partners that could pose a risk to U.S supply chains and impact national security. The United States recognizes the importance of cooperating with its allies and partners to secure supply chains; however, certain foreign investment may undermine supply chain resilience efforts and therefore national security by making the United States vulnerable to future supply disruptions

This is a significant EO, placing further focus on cybersecurity risk management.

Ted Dziekanowski

#cybersecurity #cyberriskmanagement #investment #supplychainsecurity

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