From: Bloomberg
By Chris Strohm
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.
“If the framework isn’t cost effective and isn’t supported by incentives, it’s hard to see how it can work on a sustainable basis,” Larry Clinton, president of the Internet Security Alliance, which represents General Electric Co., Boeing Co. and Wells Fargo & Co., said in a telephone interview.
The U.S. plan, scheduled to be released tomorrow, will outline standards that companies providing critical services such as electricity and water can use in preventing hacker attacks that may cripple their networks. Trade groups say inducements such as tax breaks and legal protections are needed to help offset the cost of security upgrades.
Obama issued an executive order last year after failing to get Congress to require companies to better defend their networks. While the order called for incentives, the administration couldn’t work them out in time and some will require legislation or regulatory approval.
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