Companies Aren't Loving Obama's Cyber Plan

Lack of financial incentives to help pay for security upgrades may discourage businesses from participating.

President Barack Obama’s plan to get utilities, banks and other essential services to bolster defenses against hackers will be filled with technical standards and guidance on responding to attacks.

One thing will be missing -- financial incentives to help pay for computer and network security upgrades -- and that could mean many companies decide not to take part in the voluntary program.

Sharing Data

While the administration’s National Institute of Standards and Technology developed the framework with industry, it left out incentives. The Homeland Security Department will develop a program to encourage participation in the framework.

Legislation, Regulation

Allowing utilities to recover costs through higher rates may be more difficult because it probably requires actions by state legislatures or regulators, Daniel said.

Flexible Framework

Homeland Security Secretary Jeh Johnson said in a February speech that Congress should move forward on cybersecurity legislation and that the administration could support “some form of limitation on potential civil liability for private sector entities.”

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