Cyber-Security
On the heels of two major private sector ransomware attacks, official Washington is looking to act. Last month, a cyber-attack on Colonial Pipeline shut down major gasoline distribution in the eastern United States, causing major supply disruptions and gas shortages. Reports are that Colonial paid $4.4 million in ransom to resolve the hack. A few weeks later, JBS meat processing announced it paid hackers $11 million in ransom to end a cyberattack that had also forced it to shut down. In a statement, the FBI pinned blame for the attack on two Russian cyber-hacking organizations.
In response, the Biden White House issued public memo urging private businesses to take actions to protect against ransomware. Among other things, the memo directs businesses to the Department of Homeland Security’s Cybersecurity Infrastructure and Security Agency (CISA) for additional ideas and resources to bolster their cyber defenses. www.cisa.gov/ransomware
On Capitol Hill, the Senate approved a bipartisan amendment by Senator Gary Peters (D-MI), Chairman of the Senate Homeland Security and Government Affairs Committee, and the committee’s top Republican, Senator Rob Portman (R-OH), to provide the government with additional resources to address cybercrimes. (The amendment was approved as part of a larger bill addressing competitiveness with China. See below.) The committee’s press release can be found here. Senators Peters and Portman also announced plans to introduce comprehensive cybersecurity legislation and are seeking input from the Biden Administration in drafting the bill.
There is little doubt that lawmakers in Washington will continue to seek ways to bolster the Nation’s address cyber defenses. As experts in the field, supply chain protection professionals need to make sure they are part of these critical conversations.
Competing with China
The Senate easily passed a bipartisan bill to invest almost $250 billion in bolstering U.S. manufacturing and technology to meet economic and strategic challenges from China. The legislation is clear indication of concern in Washington with China’s growing economic might. A summary of the bill can be found here. Economic and strategic policies via-a-vis China will be a major focus in Washington for the foreseeable future, and the supply chain security industry will need to stay current on these topics to respond appropriately.
White House Issues Major Supply Chain Report
Last week, the White House released a report on challenges in the global supply chain, with special emphasis on semiconductors, large capacity batteries, critical minerals and pharmaceuticals. The report was mandated under an Executive Order issued by President Biden in February and is seen as part of Washington’s efforts to revitalize domestic manufacturing of critical and strategically important goods. Lawmakers’ concern about global supply chains and domestic manufacturing is unlikely to abate, given vulnerabilities uncovered during the pandemic and in recent cyber security incidents.
Infrastructure Talks move to new phase
Negotiations between the White House and Senate Republicans over major “infrastructure” reform legislation have hit a snag, with the high profile set of meetings having reached an impasse. There is some hope, however, that talks with a new group of bipartisan Senators will yield an agreement that can garner the bipartisan support that President Biden wants. The new group, consisting of five Democratic and five Republican Senators, released a statement last week claiming optimism about conversations with the Administration. House and Senate Democratic leaders are anxious to show they can pass major infrastructure legislation, with or without Republican support. Meanwhile, the “left-flank” of the Democratic party is calling for aggressive action on wide ranging infrastructure legislation that goes beyond traditional surface transportation needs. It is unclear currently what the final contents of the legislation will hold. But, infrastructure remains a high priority in Washington, so loss prevention professionals should pay attention. It’s obvious that the longer goods and cargo remain in transit, the more vulnerable they become. So, legislation that helps create a more efficient and modernized transportation system will improve overall ability to prevent crime.