From: Association of Corporate Counsel
Christopher Avery | Davis Wright Tremaine LLP
Administration Takes Private Sector Incentives Off the Table, While Obama Calls for $14 Billion in FY 2016 Budget to Strengthen Government’s Cybersecurity Efforts
The White House’s Cybersecurity Coordinator Michael Daniel announced on Monday that the government will not offer incentives for private sector businesses to adopt the National Institute of Standards and Technology’s (NIST) Cybersecurity Framework. Instead, Mr. Daniel declared that the free hand of the market is the best means to encourage the private sector to adopt NIST’s voluntary cybersecurity measures to better guard against cyber risks. Mr. Daniel’s announcement came in response to suggestions made by the departments of Commerce, Treasury, and Homeland Security in 2013 on how to incentivize private companies to adopt the NIST Framework. While Mr. Daniel did give mention to some of these methods, he plainly stated that “we [in the Administration] believe that the market offers the most effective incentives for the private sector to adopt strong cybersecurity practices” and that “developing a government program to award a ‘seal of approval’ would likely reduce the flexible use of the Framework.”
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