As announced during the 2013 State of the Union Address, President Obama recently signed an Executive Order on cybersecurity.  The primary goals of the Executive Order are to (a) improve communication between private companies and the federal government about emerging cyber threats and (b) safeguard the nation’s critical infrastructure against cyber attacks by developing and implementing baseline cybersecurity standards. Critical infrastructure refers to those systems and assets, both physical and virtual, so vital to our nation that any cyber attacks upon them would have a debilitating impact on national security, economic security, and/or public health or safety.

According to a report issued by the Department of Homeland Security (the “DHS”) in December 2012, there were 198 cyber attacks on the nation’s critical infrastructure last year, several of which were successful.  One such successful attack involved highly sophisticated malware found on critical engineering workstations at a power generation facility.  According to the DHS’ Industrial Control Systems Cyber Emergency Response Team Monitor, an “ineffective or failed cleanup would have significantly impaired” the power plant’s operations.  Critical infrastructure systems ranging from air traffic control systems, highways, and hospitals to electrical grids, water systems, power plants and financial systems all have virtual components that are vulnerable to cyber attack.  Over the past year, the need for stronger defenses against cyber attacks has gained traction in the public eye, as hackers have successfully targeted numerous high profile companies, including major newspapers, banks, and federal agencies.

President Obama’s Executive Order on cybersecurity comes in the wake of proposed cybersecurity legislation, which was stalled in Congress last year. The Executive Order relies heavily on a voluntary program that encourages private companies operating critical infrastructure to adopt baseline cybersecurity standards, which the federal government will develop with industry assistance.