The Federal Energy Regulatory Commission (“FERC”) issued a final rule (Order No. 887) directing the North American Electric Reliability Corporation (“NERC”) to develop new or modified Reliability Standards that require internal network security monitoring (“INSM”) within Critical Infrastructure Protection (“CIP”) networked environments.  This Order may be of interest to entities that develop, implement, or maintain hardware or software for operational technologies associated with bulk electric systems (“BES”).

Continue Reading FERC Orders Development of New Internal Network Security Monitoring Standards

On January 19, 2023, the National Institute of Standards and Technology (“NIST”) published a Concept Paper setting out “Potential Significant Updates to the Cybersecurity Framework.”  Originally released in 2014, the NIST Cybersecurity Framework (“CSF” or “Framework”) is a framework designed to assist organizations with developing, aligning, and prioritizing “cybersecurity activities with [] business/mission requirements, risk tolerances, and resources.”  Globally, organizations, industries, and government agencies have increasingly relied upon the Framework to establish cybersecurity programs and measure their maturity.  The NIST CSF was previously updated in 2018, and NIST now seeks public comment on the latest changes outlined in the Concept Paper.

Continue Reading NIST Requests Comments on Potential Significant Updates to the Cybersecurity Framework

This quarterly update summarizes key legislative and regulatory developments in the fourth quarter of 2022 related to Artificial Intelligence (“AI”), the Internet of Things (“IoT”), connected and autonomous vehicles (“CAVs”), and data privacy and cybersecurity.

Continue Reading U.S. AI, IoT, CAV, and Privacy Legislative Update – Fourth Quarter 2022

The new EU-wide cyber law, Directive 2022/2555 (NIS2), entered into force on Monday, January 16, 2023. NIS2 builds on the original NIS Directive but significantly expands the categories of organizations that fall within the scope of the law, imposes new and more granular security and incident reporting rules, and creates a stricter enforcement regime. Member states now have until October 18, 2024 to transpose the new directive into their respective national laws.

The passage of NIS2 sets the stage for 2023 to be another big year for cybersecurity in Europe. We expect the global cyber threat landscape to remain challenging and the regulatory landscape to become even more complex due to a raft of new laws including the Cyber Resilience Act (which we covered here), the Critical Entities Resilience Directive (see our post here), the Digital Operational Resilience Act (DORA) (focused on financial services), and the UK’s ongoing reforms to its Network and Information Systems Regulations.

In this blog post, we summarize the key elements of NIS2 and describe what they will mean for your cybersecurity program this year.

Continue Reading New EU Cyber Law “NIS2” Enters Into Force

The New York Department of Financial Services (“NYDFS”) published the latest draft of its Proposed Second Amendment to its landmark Cybersecurity Regulation (23 NYCRR 500) on November 9, 2022.  The proposed second amendment comes after an initial comment period on an earlier-released draft amendment released on July 29, 2022.  NYDFS is accepting comments on the proposed second amendment through January 9, 2023. 

Continue Reading New York Department of Financial Services Proposed Second Amendment to Cybersecurity Regulation – Comments Close January 9, 2023

On September 14, 2022, the Director of the Office of Management and Budget (“OMB”) issued a memorandum to the heads of executive branch departments and agencies addressing the enhancement of security of the federal software supply chain.  The memorandum applies to all software (other than agency-developed software) developed or experiencing major version changes to be operated “on the agency’s information systems or otherwise affecting the agency’s information,” and requires new self-attestations from software vendors before that software can be used by agencies.  

Continue Reading OMB Issues Memorandum on Self-Attestations by Software Developers of Secure Software Development Practices and Collection of Software Bill of Materials

On September 12, 2022, the U.S. Cybersecurity and Infrastructure Security Agency (“CISA”) published a Request for Information, seeking public comment on how to structure implementing regulations for reporting requirements under the Cyber Incident Reporting for Critical Infrastructure Act of 2022 (“CIRCIA”).  Written comments are requested on or before November 14, 2022 and may be submitted through the Federal eRulemaking Portal: http://www.regulations.gov.

Continue Reading CISA Requests Public Comment on Implementing Regulations for the Cyber Incident Reporting for Critical Infrastructure Act

On September 15, 2022, the European Commission published a draft regulation that sets out cybersecurity requirements for “products with digital elements” (PDEs) placed on the EU market — the Cyber Resilience Act (CRA). The Commission has identified that cyberattacks are increasing in the EU, with an estimated global annual cost of €5.5 trillion. The CRA aims to strengthen the security of PDEs and imposes obligations that cover:

  1. the planning, design, development, production, delivery and maintenance of PDEs;
  2. the prevention and handling of cyber vulnerabilities; and
  3. the provision of cybersecurity information to users of PDEs.

The CRA also imposes obligations to report any actively exploited vulnerability as well as any incident that impacts the security of a PDE to ENISA within 24 hours of becoming aware of it.

The obligations apply primarily to manufacturers of PDEs, which include entities that develop or manufacture PDEs as well as entities that outsource the design, development and manufacturing to a third party. Importers and distributors of PDEs also need to ensure that the products comply with CRA’s requirements.

The requirements apply for the lifetime of a product or five years from its placement on the market, whichever is shorter. Due to the cross-border dimension of cybersecurity incidents, the CRA applies to any PDEs that are placed on the EU market—regardless of where they are manufactured—and imposes new mandatory conformity assessment requirements. The proposed regulation will now undergo review and potential approval in the Council of the EU and the European Parliament. Its provisions would apply fully within two years after entry into force, potentially in late 2026. We set out more detail and commentary below based on our initial review of the proposal.

Continue Reading EU Publishes Draft Cyber Resilience Act

The UK Government’s (UKG) proposals for new, sector-specific cybersecurity rules continue to take shape. Following the announcement of a Product Security and Telecommunications Infrastructure Bill and a consultation on the security of apps and app stores in the Queen’s Speech (which we briefly discuss here), the UKG issued a call for views on whether action is needed to ensure cyber security in data centres and cloud services (described here).

In recent weeks, the UKG has made two further announcements:

  • On 30 August 2022, it issued a response to its public consultation on the draft Electronic Communications (Security measures) Regulations 2022 (Draft Regulations) and a draft Telecommunications Security code of practice (COP), before laying a revised version of the Draft Regulations before Parliament on 5 September.
  • On 1 September 2022, it issued a call for information on the risks associated with unauthorized access to individuals’ online accounts and personal data, and measures that could be taken to limit that risk.

We set out below further detail on these latest developments.

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Continue Reading A packed end to the UK’s cyber summer: Government moves forward with telecoms cybersecurity proposals and consults on a Cyber Duty to Protect

On August 31, 2022, one day before the Measures for Security Assessment of Cross-border Data Transfer (“Measures”) were scheduled to take effect, the Cyberspace Administration of China (“CAC”) released a first edition of its guidance on how organizations should complete the security assessment application (“CAC Guidance”). Covington’s previous posts on the Measures can be found here.

Continue Reading China Releases Guidance on Cross-border Data Transfer Security Assessment Application