Breaking Down the Impact of the Cybersecurity Executive Order on Businesses

Breaking Down the Impact of the Cybersecurity Executive Order on Businesses

The rise of cyberattacks and data breaches has been a growing concern for businesses of all sizes. In May 2021, the US Government released an executive order pertaining to cybersecurity that aimed to increase the level of security practices for businesses and federal agencies. The order required its implementation across all sectors of businesses that work with the government, including IT, healthcare, and energy.

The Purpose of the Cybersecurity Executive Order

The goal of the cybersecurity executive order is to minimize the vulnerabilities that businesses face every day by providing organizations with various resources and guidance to improve their cybersecurity measures. The order provides an outline of the basic steps that every business can take to secure their IT infrastructure and comply with industry best practices.

The Key Points of the Cybersecurity Executive Order

The executive order has several key provisions that are essential in maintaining the security of businesses. These include:

1. Removing Barriers to Sharing Threat Information

The order encourages organizations to share information about cybersecurity threats and events more rapidly, accurately, and effectively among all industry stakeholders. This provision helps businesses identify threats and quickly take action to combat them.

2. Modernizing the Cybersecurity of Federal Networks

The order identifies the need to modernize the federal government’s digital infrastructure and enhance cybersecurity measures for federal agencies. The order aims to establish a more secure architecture for the federal government’s networks to safeguard sensitive information from malicious cyber actors.

3. Improving Software Security

The order aims to establish more robust security guidelines for developing and implementing applications to bolster software security measures to prevent potential cyber threats.

The Impacts on Businesses

The executive order is expected to have a significant impact on businesses that work with the federal government. Businesses will need to adjust their cybersecurity policies to comply with the best practices outlined in the order to ensure that they can continue to engage with and receive contracts from federal agencies. The order might also lead to more frequent compliance audits for businesses that work with the federal government.

Furthermore, the order can provide an opportunity for businesses to enhance their internal cybersecurity practices. Poor cybersecurity can lead to data breaches, legal penalties, and reputational damage. Implementing stronger cybersecurity measures will safeguard businesses and their customers’ sensitive information, thereby building trust.


The Cybersecurity Executive Order will bring significant changes in the way businesses operate. By implementing the order’s provisions, businesses will be better prepared to face the evolving cyber threats and prevent data breaches. Additionally, modernizing the cybersecurity of federal networks helps to protect sensitive information. The order has already begun assisting organizations in taking the necessary steps to improve cybersecurity measures. By complying with the executive order, businesses will be better equipped to stay safe in an increasingly digital and cyber-threatened world.

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