Cybersecurity Requirements Raising the Stakes for Manufacturers
By Elliot Forsyth, Vice President of Business Operations at the Michigan Manufacturing Technology Center (The Center)
Cybersecurity is paramount to our nation’s safety and our military’s viability. Having a sustainable plan in place to combat cyber threats also is critical to the survival of a small business because just one cyber-attack can be catastrophic. The following statistics underscore the severity of the issue:
◾ According to IBM, small and mid-sized businesses are hit by cyber-attacks about 4,000 times per day.
◾ The U.S. National Cyber Security Alliance found that 60 percent of small companies are unable to sustain their businesses over six months after a cyber-attack.
◾ The Ponemom Institute has indicated that the average price for small businesses to clean up after they have been hacked is $690,000; and, for middle market companies, the cost exceeds $1 million.
◾ Manufacturing has become a top five industry for cyber-attacks.
As a result, government agencies are formalizing and instituting cybersecurity requirements for their contractors. Specifically, the Department of Defense (DoD), General Services Administration (GSA) and NASA require contractors to meet minimum security requirements detailed by the National Institute of Standards and Technology (NIST) in Special Publication 800-171 by December 31, 2017—or risk losing federal contracts.