Chairman Peters' Questions: Streamlining the Federal Cybersecurity Regulatory Process

Summary

The video script discusses the need for harmonization of cybersecurity regulations across federal agencies to combat the rising threat of cyber attacks. It highlights the challenges faced by the Office of the National Cyber Director (ONCD) in coordinating with independent regulatory agencies and emphasizes the importance of a unified federal framework to reduce compliance burdens and enhance security outcomes. The discussion also touches on the impact of disharmonized regulations on international competitiveness and the need for federal leadership in guiding state and local regulations.

Takeaways

• 📚 Regulations are crucial for various federal agency functions, including clean water, investor protection, and cybersecurity, which is increasingly important due to the growing threat of cyber attacks.
• 🔒 Cybersecurity regulations are a strong candidate for harmonization because the underlying information and communication technology is similar across different sectors like banking, nuclear power, and water treatment facilities.
• 🤝 Harmonization aims to create a unified approach to cybersecurity, reducing compliance costs and improving security outcomes by avoiding redundant efforts across different regulatory bodies.
• 🚫 The current 'check the box' compliance culture is criticized for not significantly advancing cybersecurity and instead increasing the administrative burden without substantial security improvements.
• 🔄 The discussion highlights the need for a common framework that can be customized to meet the needs of individual sectors, reducing the cost and complexity of compliance.
• 🏛️ The Office of the National Cyber Director (ONCD) is designated as the federal lead for addressing cybersecurity regulatory harmonization, emphasizing the need for a strategic, top-down approach.
• 🤝 The ONCD faces challenges in harmonizing regulations due to the breadth of the issue and the difficulty in getting all relevant parties, including independent regulatory commissions, to participate in the policy-making process.
• 🏢 Businesses are impacted by the lack of harmonization, as they may need to invest in multiple systems to comply with different regulatory requirements, putting them at a competitive disadvantage internationally.
• 🏦 State and local regulations, such as those in Massachusetts and New York, add another layer of complexity for businesses, which could benefit from federal leadership in setting a harmonized baseline.
• 🌐 The harmonization effort is not limited to federal agencies; it also involves coordination with state, local, tribal, and territorial governments to create a unified set of regulations.
• 📈 The feedback from the ONCD's request for information (RFI) on cybersecurity regulatory harmonization underscores the importance of reciprocity and a focus on supply chain risk management in the harmonization process.

Q & A

What is the primary purpose of cybersecurity regulations?

The primary purpose of cybersecurity regulations is to protect critical infrastructure and federal systems from the growing threat of cyber attacks, ensuring the security of enterprise IT systems across various sectors such as banking, nuclear power plants, and water treatment facilities.

Why are cybersecurity regulations a good candidate for harmonization across federal agencies?

Cybersecurity regulations are a good candidate for harmonization because the information and communication technology used across different sectors is largely the same. Harmonizing these regulations can lead to better cybersecurity outcomes and reduce compliance costs.

What is the main challenge in harmonizing cybersecurity regulations?

The main challenge in harmonizing cybersecurity regulations is the breadth of the problem, with dozens of regulators and regulations. Additionally, getting all relevant parties, including independent regulatory commissions, to the table is crucial but currently limited.

How can regulators better tailor their requirements to promote cybersecurity?

Regulators can better tailor their requirements by focusing on a common framework that minimizes redundancy and conflict. This approach can help organizations focus on actual cybersecurity protection rather than just compliance.

What is the role of the Office of the National Cyber Director (ONCD) in addressing cybersecurity regulatory harmonization?

The ONCD is designated as the federal lead for addressing cybersecurity regulatory harmonization. It is responsible for developing a strategic approach and framework that can be applied across sectors and ensuring all relevant parties are involved in the policy-making process.

What is the significance of reciprocity in cybersecurity regulations?

Reciprocity is significant in cybersecurity regulations as it ensures that once an entity has met the requirements, it does not need to do so again for other regulators asking the same questions. This helps reduce the compliance burden and allows businesses to focus on improving cybersecurity outcomes.

How does the lack of coordination among regulators impact businesses?

The lack of coordination among regulators, especially independent regulatory agencies, leads to a compliance culture where businesses spend a significant amount of time and resources on meeting multiple and often conflicting requirements, rather than focusing on actual cybersecurity protection.

What are the implications of disharmonized cybersecurity regulations on international competition?

Disharmonized cybersecurity regulations can put companies at a competitive disadvantage internationally, as they may need to invest in multiple systems to comply with different regulatory regimes, increasing their costs and reducing their competitiveness compared to companies operating under a single, unified framework.

How do state and local cybersecurity regulations impact businesses?

State and local cybersecurity regulations can add an additional layer of complexity for businesses, as they must comply with multiple and sometimes conflicting requirements. This can lead to increased compliance costs and administrative burdens, diverting resources away from actual cybersecurity measures.

What feedback did the ONCD receive from the Request for Information (RFI) on cybersecurity regulatory harmonization?

The ONCD received feedback highlighting the importance of reciprocity, the focus on compliance burden, and the need for a harmonized framework that includes supply chain risk management. This feedback has influenced the ONCD's approach to regulatory harmonization and reciprocity.