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Cybersecurity — Challenges and Opportunities for Small Businesses

Summary

The printed record of S. Hrg. 118-113, a field hearing of the Senate Committee on Small Business and Entrepreneurship on cybersecurity for small businesses, on August 15, 2023 at the UCCS Cybersecurity Center in Colorado Springs with Senator John Hickenlooper presiding. Hickenlooper says sixty-six percent of small businesses experienced a cyberattack in the past year and describes the bipartisan Insure Cybersecurity Act. Kevin Stine, Chief of the Applied Cybersecurity Division at the National Institute of Standards and Technology, describes NIST's small business resources and the Cybersecurity Framework redraft issued August 8th. The other witnesses were a University of Colorado cybersecurity programs director, the CEO of CSD Cyber and the president-elect of the Information Systems Security Association. The record stays open for questions until August 28, 2023.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Full text

S. HRG. 118–113

                                              CYBERSECURITY: CHALLENGES AND
                                            OPPORTUNITIES FOR SMALL BUSINESSES

                                                                 HEARING
                                                                      BEFORE THE

                                           COMMITTEE ON SMALL BUSINESS
                                              AND ENTREPRENEURSHIP
                                                                         OF THE

                                                     UNITED STATES SENATE
                                                 ONE HUNDRED EIGHTEENTH CONGRESS
                                                                    FIRST SESSION

                                                                    AUGUST 15, 2023

                                      Printed for the use of the Committee on Small Business and Entrepreneurship

                                                                        (

                                                 Available via the World Wide Web: http://www.govinfo.gov

                                                           U.S. GOVERNMENT PUBLISHING OFFICE
                                        53–540                      WASHINGTON : 2024

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                                                                                          COMMITTEE ON SMALL BUSINESS AND ENTREPRENEURSHIP

                                                                                                        ONE HUNDRED EIGHTEENTH CONGRESS

                                                                                                   BENJAMIN L. CARDIN, Maryland, Chairman
                                                                                                        JONI ERNST, Iowa, Ranking Member
                                                                                 MARIA CANTWELL, Washington              MARCO RUBIO, Florida
                                                                                 JEANNE SHAHEEN, New Hampshire           JAMES E. RISCH, Idaho
                                                                                 EDWARD J. MARKEY, Massachusetts         RAND PAUL, Kentucky
                                                                                 CORY A. BOOKER, New Jersey              TIM SCOTT, South Carolina
                                                                                 CHRISTOPHER A. COONS, Delaware          TODD YOUNG, Indiana
                                                                                 MAZIE HIRONO, Hawaii                    JOHN KENNEDY, Louisiana
                                                                                 TAMMY DUCKWORTH, Illinois               JOSH HAWLEY, Missouri
                                                                                 JACKY ROSEN, Nevada                     TED BUDD, North Carolina
                                                                                 JOHN HICKENLOOPER, Colorado
                                                                                                       SEAN MOORE, Democratic Staff Director
                                                                                                      MEREDITH WEST, Republican Staff Director

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                                                                                                                                  CONTENTS

                                                                                                                                     AUGUST 15, 2023

                                                                                                                                   OPENING STATEMENTS
                                                                                                                                                                                                                   Page

                                                                                                                                            WITNESSES
                                                                                 John Hickenlooper, U.S. Senator from Colorado ...................................................                                  00
                                                                                 Mr. Kevin Stine, Chief of the Applied Cybersecurity Division, National Insti-
                                                                                   tute of Standards and Technology, U.S. Department of Commerce, Gaithers-
                                                                                   burg, MD ...............................................................................................................         00
                                                                                     Prepared Statement .........................................................................................                   00
                                                                                 Ms. Gretchen Bliss, Director of Cybersecurity Programs, Cybersecurity Pro-
                                                                                   grams Office, University of Colorado, Colorado Springs, Colorado Springs,
                                                                                   CO ..........................................................................................................................    00
                                                                                     Prepared Statement .........................................................................................                   00
                                                                                 Mr. Alfred Ortiz, CEO, CSD Cyber, Colorado Springs, CO .................................                                           00
                                                                                     Prepared Statement .........................................................................................                   00
                                                                                 Dr. Shawn P. Murray, President-Elect, International Board of Directors, In-
                                                                                   formation Systems Security Association, Colorado Springs, CO ......................                                              00
                                                                                     Prepared Statement .........................................................................................                   00

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                                                                                        CYBERSECURITY: CHALLENGES AND
                                                                                      OPPORTUNITIES FOR SMALL BUSINESSES

                                                                                                              TUESDAY, AUGUST 15, 2023

                                                                                                             UNITED STATES SENATE,
                                                                                                         COMMITTEE ON SMALL BUSINESS
                                                                                                                    AND ENTREPRENEURSHIP,
                                                                                                                                Washington, DC.
                                                                                   The committee met, pursuant to notice, at 2:30 p.m. MDT, at
                                                                                 UCCS Cybersecurity Center, 3650 N. Nevada Avenue, Colorado
                                                                                 Springs, Colorado, Hon. John Hickenlooper presiding.
                                                                                   Present: Senator Hickenlooper [presiding].
                                                                                         OPENING STATEMENT OF SENATOR HICKENLOOPER
                                                                                   Senator HICKENLOOPER. I call this meeting of the Committee on
                                                                                 Small Business and Entrepreneurship to order. Today we are going
                                                                                 to have a Senate Small Business Committee field hearing on the
                                                                                 importance of cybersecurity, especially for small businesses.
                                                                                   We want to give special thanks to the University of Colorado at
                                                                                 Colorado Springs, the Space Information Sharing and Analysis
                                                                                 Center, the ISAC, and the National Cybersecurity Center for their
                                                                                 hard work on these critical issues and for providing such a wonder-
                                                                                 ful space for us to talk about space. Also thanks to Chair Cardin
                                                                                 and Ranking Member Ernst for the opportunity to chair this hear-
                                                                                 ing, for their partnership on working on these critical issues. And
                                                                                 although they are not here personally they are here in spirit.
                                                                                   And especially important in light of the Air Force’s decision to
                                                                                 permanently locate Space Command here. Colorado Springs has
                                                                                 both the small business base and local expertise to support the
                                                                                 work of Space Command, and we look forward to a long, continued
                                                                                 alliance with Space Command.
                                                                                   We are here today to focus on how to help these small businesses
                                                                                 to thrive in an ever-changing economy, especially one where cyber-
                                                                                 security becomes a larger and larger risk. The changing nature of
                                                                                 commerce means small businesses have the opportunity to inte-
                                                                                 grate technology to help them grow and innovate. Internet trans-
                                                                                 actions contribute roughly $10 trillion annual to the global econ-
                                                                                 omy. But as technology becomes more critical to business oper-
                                                                                 ations, cybercrime becomes increasingly threatening. Bad actors
                                                                                 target small businesses, large businesses indiscriminately. Some-
                                                                                 times they just attack anything that moves.
                                                                                   Sixty-six percent of all small businesses have experienced a
                                                                                 cyberattack of some sort in the past year. These cyberattacks in-
                                                                                 clude software designed to harm computer systems, phishing

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                                                                                 emails, Trojan Horses that contain malware, holding data and ap-
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                                                                                                                                     2

                                                                                 plications for ransom. That includes weaknesses such as weak
                                                                                 passwords that can be easily guessed or construed by bad actors.
                                                                                   Small businesses often, on account of their size, so often lack the
                                                                                 resources and expertise to prevent the cyberattacks before they
                                                                                 happen, and in many cases struggle to respond after the attack oc-
                                                                                 curs. In so many cases they cannot afford to have a department or
                                                                                 even a dedicated engineer to help them be prepared and to help
                                                                                 guide them when they have been attacked.
                                                                                   Small contractors may struggle to comply with complex Federal
                                                                                 contracting requirements. We need to make sure that with the
                                                                                 complex systems that the Federal Government requires that we
                                                                                 prioritize security without leaving small contractors behind. Cer-
                                                                                 tainly when small businesses turn to the insurance market for
                                                                                 cyber insurance it can be challenging to understand how the poli-
                                                                                 cies work, how insurance can help them recover after a
                                                                                 cyberattack, and what the value proposition is, what they are pay-
                                                                                 ing for, whether they are getting a fair value for their insurance.
                                                                                   Our bipartisan Insure Cybersecurity Act, with Senator Capito
                                                                                 from West Virginia, is going to help provide both clarity and guid-
                                                                                 ance for small businesses looking to get insured. This is an issue
                                                                                 across industries. Even former brewpub owners are sensitive to the
                                                                                 need to protect websites, payments, business accounts.
                                                                                   The Federal Government has a broad variety of programs to con-
                                                                                 nect small businesses with the support they need to do business,
                                                                                 and especially do business in this digital economy. The SBA Small
                                                                                 Business Development Centers support small firms in a variety of
                                                                                 ways, including cyber. One new law requires SBDCs to have em-
                                                                                 ployees certified cyber strategy counseling for small businesses.
                                                                                 That means that there are answers at hand at almost all times.
                                                                                   A few of our witnesses today have done extensive work with the
                                                                                 Colorado SBDC to support training small firms in this room. The
                                                                                 National Institute of Standards and Technology, more fondly
                                                                                 known as NIST to most of us, is a global leader—and I mean that
                                                                                 sincerely, a global leader—in setting standards and issuing de-
                                                                                 tailed guidance on privacy, connected devices, cybersecurity. We
                                                                                 are lucky to have these deep technical experts working to protect
                                                                                 public and private institutions, not just nationwide but globally.
                                                                                 They establish a common language, and such a commonality of lan-
                                                                                 guage is essential to be successful in our defense from intruders.
                                                                                 We are excited to hear today from NIST about their work on these
                                                                                 issues.
                                                                                   This is, without question, a bipartisan issue. There should be no
                                                                                 politics involved in this in any way. I think everyone agrees that
                                                                                 we need to expand our cyber workforce. Right now we are filling
                                                                                 up less than 70 percent of the jobs that need to be filled, the avail-
                                                                                 able cyber jobs. We need to provide support, and not just support
                                                                                 but genuine technical assistance to small businesses. At the same
                                                                                 time, we have to raise awareness of the information that is avail-
                                                                                 able for cyber defense, where they can turn. And we have to, at
                                                                                 least to some minimum level, establish these cyber standards
                                                                                 around creating safeguards.
                                                                                   As our economy continues to grow and continues to digitize, we

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                                                                                 need to ensure businesses have the ability to protect themselves in
                                                                                 cyberspace. Most important for my job here right now is to thank

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                                                                                 all of you for being here, our witnesses. I will introduce Kevin Stine
                                                                                 here in a moment.
                                                                                    Having a standard Senate hearing proceeding, or not being able
                                                                                 to have a standard Senate hearing in the old traditional sense
                                                                                 means we will not be taking—let’s get that right. Using the stand-
                                                                                 ard Senate hearing proceedings means we cannot take questions
                                                                                 from the audience, but if someone wants to sign them out to me
                                                                                 I will do the best I can. But certainly if call, send us an email,
                                                                                 write us a letter, we will respond and answer any questions that
                                                                                 are asked.
                                                                                    We have some excellent witnesses today, and I am going to read
                                                                                 a description of all four witnesses, although we are going to start
                                                                                 with Kevin Stine here, who is Chief of the Applied Cybersecurity
                                                                                 Division at the National Institute of Standards and Technology,
                                                                                 NIST, the Information Technology Laboratory, or should I say
                                                                                 NIST’s Information Technology Laboratory. Do not get me started
                                                                                 on the acronyms in the Federal Government.
                                                                                    In this role, Kevin leads NIST’s collaborations with industry,
                                                                                 with academia, and, of course, with government to improve cyber-
                                                                                 security and privacy risk management.
                                                                                    We are going to hear in a moment from Gretchen Bliss, who is
                                                                                 the Director of Cybersecurity Programs at the University of Colo-
                                                                                 rado, Colorado Springs. Gretchen has over 30 years of experience
                                                                                 in cybersecurity and leads UCCS’s academic and research efforts in
                                                                                 cybersecurity.
                                                                                    Alfred Ortiz is the CEO of CSD Cyber. Alfred established his
                                                                                 small business after over 20 years of working in cyber systems and
                                                                                 is capable of translating even this indecipherable technology into
                                                                                 Spanish.
                                                                                    Also we have Dr. Shawn Murray, President-Elect of the Informa-
                                                                                 tion Systems Security Association. Dr. Murray is a small business
                                                                                 owner, the incoming President of an association of IT security pro-
                                                                                 fessionals.
                                                                                    So again, we are grateful to have all of you here, especially to
                                                                                 those of you who are going to have to step up to the witness stand
                                                                                 and bear witness.
                                                                                    Anyway, we will start with our first panelist, Kevin Stine, and
                                                                                 now I will turn it over to you for your opening remarks, and then
                                                                                 we will begin the heated questioning, well, lukewarm questioning.

                                                                                 STATEMENT OF KEVIN STINE, CHIEF OF THE APPLIED CYBER-
                                                                                  SECURITY DIVISION, NATIONAL INSTITUTE OF STANDARDS
                                                                                  AND TECHNOLOGY, U.S. DEPARTMENT OF COMMERCE, GAI-
                                                                                  THERSBURG, MD
                                                                                    Mr. STINE. I look forward to it. Perfect.
                                                                                    Well, thank you Senator Hickenlooper for including NIST in to-
                                                                                 day’s field hearing on such an important topic and here in beautiful
                                                                                 Colorado Springs. As you mentioned, I am Kevin Stine. I am the
                                                                                 Chief of the Applied Cybersecurity Division within the Information
                                                                                 Technology Lab at the Department of Commerce’s National Insti-

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                                                                                 tute of Standards and Technology. Keeping track of acronyms, that
                                                                                 is DOC NIST ITL ACD, but we will not go there.

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                                                                                    Thank you again for the opportunity to be here today to discuss
                                                                                 NIST’s role in helping small businesses to improve their cybersecu-
                                                                                 rity.
                                                                                    NIST has worked in the cybersecurity space since about 1972,
                                                                                 and really prides itself on our strong partnerships with government
                                                                                 agencies, with companies of all sizes, with academic, nonprofit enti-
                                                                                 ties, to really develop and improve our cybersecurity resources to
                                                                                 best meet their needs. Our direct connections with companies and
                                                                                 other users of our guidance helps those organizations but it also
                                                                                 advances our efforts to inform government and private sector cy-
                                                                                 bersecurity-related policy decisions.
                                                                                    I think as you said very clearly, cybersecurity is a challenge for
                                                                                 all organizations, and the risks and technologies are constantly
                                                                                 changing, and it can be difficult for any organization to keep pace.
                                                                                 Small businesses, though, are more innovative, agile, and produc-
                                                                                 tive than ever thanks to the capabilities delivered by technology,
                                                                                 but the cybersecurity challenges for small businesses certainly
                                                                                 loom larger than ever.
                                                                                    Not every small business is the same. Their risks will vary. So
                                                                                 whether you are a small coffee shop or a brewpub, your risks could
                                                                                 be very different compared to a small company that maintains mil-
                                                                                 lions of health records, for example.
                                                                                    At NIST we believe in risk-based approaches to ensure organiza-
                                                                                 tions have the tools to address their specific needs. We have a long-
                                                                                 standing effort to help small companies meet their cybersecurity
                                                                                 needs. In response to the NIST Small Business Cybersecurity Act
                                                                                 several years ago we launched the NIST Small Business Cyberse-
                                                                                 curity Corner to help put key resources in one place. The Small
                                                                                 Business Administration, the Department of Homeland Security,
                                                                                 the Federal Trade Commission, and others have contributed re-
                                                                                 sources to that NIST site, and they are also providing small busi-
                                                                                 ness-focused resources to be shared through our site, and they pro-
                                                                                 mote its awareness and use.
                                                                                    In March of this year, NIST launched a Small Business Cyberse-
                                                                                 curity Community of Interest to convene companies, trade associa-
                                                                                 tions, and others who can share business insights, expertise, chal-
                                                                                 lenges, and perspective to guide our work and assist NIST to better
                                                                                 meet the cybersecurity needs of small businesses. Members of this
                                                                                 community are learning about NIST’s current and planned re-
                                                                                 sources intended for smaller organizations, and they also provide
                                                                                 us with on-the-ground feedback about the usefulness of those re-
                                                                                 sources and how to approve them.
                                                                                    Beginning in 2013, NIST created the Framework for Improving
                                                                                 Critical Infrastructure Cybersecurity, which is commonly referred
                                                                                 to as the Cybersecurity Framework or the CSF, which many orga-
                                                                                 nizations, including many small businesses, use to better under-
                                                                                 stand, communicate, and reduce cybersecurity risk.
                                                                                    Just last week, on August 8th, we issued a complete redraft of
                                                                                 the Framework for public comment, and we have based our pro-
                                                                                 posed update on lessons learned from the use of the Framework
                                                                                 over the last several years. CSF 2.0, as we call it, is explicitly in-
                                                                                 tended to be used by organizations of any size and in any sector.

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                                                                                 We have been hosting workshops and collecting comments to in-
                                                                                 form improvements to the framework, and that includes reaching

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                                                                                                                                     5

                                                                                 out to small businesses for their perspectives, which has been very
                                                                                 valuable.
                                                                                    Small manufacturers also represent a critically important part of
                                                                                 the community. The mission of NIST Manufacturing Extension
                                                                                 Partnership, or the MEP, is to assist small and medium-sized man-
                                                                                 ufacturers. MEP operates a nationwide network, with centers in
                                                                                 every state and in Puerto Rico, and through this program NIST
                                                                                 partners with others to provide awareness, training, and hands-on
                                                                                 cybersecurity assistance to smaller manufacturers to help them se-
                                                                                 cure their business information and assets.
                                                                                    You mentioned cybersecurity workforce in your opening remarks.
                                                                                 A skilled and diverse cybersecurity workforce in organizations, in-
                                                                                 cluding, and sometimes especially in smaller companies, is critical
                                                                                 to improving the nation’s cybersecurity capabilities. Another pro-
                                                                                 gram led by NIST is NICE—I do not always pick the acronyms, but
                                                                                 it is a nice one—which enhances cybersecurity education, training,
                                                                                 and workforce development capabilities of the United States.
                                                                                 Through NICE we have produced tools and provide resources to
                                                                                 help large and small organizations alike to understand and address
                                                                                 their cybersecurity workforce needs.
                                                                                    We are also home to the National Cybersecurity Center of Excel-
                                                                                 lence, which is a collaborative hub where industry, government
                                                                                 agencies, and academic institutions and others work together to ad-
                                                                                 dress cybersecurity challenges facing U.S. businesses of all sizes.
                                                                                    And while we have developed cybersecurity guidance and other
                                                                                 resources for small businesses, we are also focused on increasing
                                                                                 the security of the technology that we all leverage each and every
                                                                                 day, including, for example, our work on next-generation
                                                                                 encryption and our efforts to secure software platforms, networks,
                                                                                 and connected devices.
                                                                                    So again, thank you for the opportunity to explain NIST’s cyber-
                                                                                 security portfolio and how it applies to a wide variety of users,
                                                                                 from small and medium-sized enterprises to large, private and pub-
                                                                                 lic organizations. We know how real and difficult the challenges
                                                                                 are, and it is part of our job to help organizations of any size, in
                                                                                 any sector, to successfully tackle those challenges so they can do
                                                                                 their jobs better.
                                                                                    So thank you again for including us, and I look forward to any
                                                                                 questions you might have.
                                                                                    [The prepared statement of Mr. Stine follows:]

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                                                                                    Senator HICKENLOOPER. You bet. Thank you, Kevin, and I appre-
                                                                                 ciate you taking the time out of your busy schedule to get over here
                                                                                 for this hearing.
                                                                                    Obviously, you are concerned with cyber in all dimensions. How
                                                                                 do you think about cyber within small businesses, specifically, and
                                                                                 in what ways do you try to think of that, you know, communicate
                                                                                 to that community in a specific way?
                                                                                    Mr. STINE. Yeah. Cybersecurity, at times, has its own language
                                                                                 that we speak, so it is important to be able to talk about cybersecu-
                                                                                 rity in a way that will be more consumable and digestible to orga-
                                                                                 nizations of all shapes and sizes across all different sectors, and
                                                                                 that certainly is inclusive of small businesses.
                                                                                    Tools like the Cybersecurity Framework provide, in our view, a
                                                                                 common language or a common taxonomy that is intended to help
                                                                                 break down some of those communications divides both within com-
                                                                                 panies but also across companies and across sectors, and even
                                                                                 across nations as well. We think there is a lot of value in having
                                                                                 a common language that is provided by the Cybersecurity Frame-
                                                                                 work.
                                                                                    Senator HICKENLOOPER. What are some of the key pieces of feed-
                                                                                 back that you have received from NIST’s new Small Business Cy-
                                                                                 bersecurity Community of Interest?
                                                                                    Mr. STINE. The Small Business Cybersecurity Community of In-
                                                                                 terest. We take small business cybersecurity very seriously, and it
                                                                                 is certainly woven into all parts of our cybersecurity and our pri-
                                                                                 vacy portfolio at NIST. We stood up the Community of Interest just
                                                                                 a few months ago to really help drive more involvement, and I
                                                                                 would say that is bidirectional involvement with the small business
                                                                                 community, both the businesses themselves but also their advo-
                                                                                 cates. It could be associations. It could be service provides to small
                                                                                 businesses, for example. And we think having that open line of
                                                                                 communication, that bidirectional communication is tremendously
                                                                                 valuable for us to help share updates with the small business com-
                                                                                 munity on things we are working on but also receive feedback di-
                                                                                 rectly from them.
                                                                                    And I think over the last few months there are a few themes that
                                                                                 I think we have heard in these formative months. The first, I think
                                                                                 there has been overwhelming appreciation for having a venue like
                                                                                 the Small Business Cybersecurity Community of Interest, where
                                                                                 different players in the community can get together, share their ex-
                                                                                 periences, and certainly communicate directly with NIST.
                                                                                    We frequently hear that one of the big challenges for small busi-
                                                                                 nesses, because cybersecurity can be overwhelming, and certainly
                                                                                 the standards and guidelines can be overwhelming as well, just the
                                                                                 sheer volume of those resources alone can be overwhelming. So
                                                                                 being able to discuss just simply where to start—Where do I start?
                                                                                 What are some resources that I should start with as a small busi-
                                                                                 ness to really get a better sense of where I am today from a cyber-
                                                                                 security perspective and where I might need to be, and what are
                                                                                 some potentially quick steps I can take on my journey? So hearing
                                                                                 that has been very helpful.
                                                                                    And I think the final piece that we have heard, and the final

dmwilson on DSKJM0X7X2PROD with HEARINGS
                                                                                 theme, would be the need and the importance for tailored re-
                                                                                 sources. Again, we produce a lot of standards and guidelines and

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                                                                                 other agencies and other organizations, public and private, produce
                                                                                 resources for small businesses. And not all of those resources are
                                                                                 written in a way that are tailored or customizable for the unique
                                                                                 needs of small businesses.
                                                                                    So the learnings that we are kind of observing early on is just
                                                                                 the validation that as we are producing standards and guidelines,
                                                                                 as we are producing other resources to be able to reflect those to
                                                                                 the small business community and get their feedback early and
                                                                                 often so that the things that we produce are going to be the most
                                                                                 useful and digestible for them.
                                                                                    Senator HICKENLOOPER. Integrate it. Take that feedback into the
                                                                                 policy.
                                                                                    Last week, NIST released a new draft of their highly regarded
                                                                                 Cybersecurity Framework, as you were describing, after beginning
                                                                                 the 2.0. I know that the NIST Cybersecurity Framework was well
                                                                                 received by many large companies. What has the response been—
                                                                                 I am sure you have a broader range of responses, but what has the
                                                                                 overall response been from the small business community?
                                                                                    Mr. STINE. We have been thrilled with the uptake of the Frame-
                                                                                 work since we first issued it in 2014, and certainly we have seen
                                                                                 tremendous growth and increased uptake across all sectors and all
                                                                                 sizes of organizations since we issued that first version back in
                                                                                 2014. And that includes small businesses, and we have had many
                                                                                 small businesses that have been on the Cybersecurity Framework
                                                                                 journey with us since the early days and have become great advo-
                                                                                 cates and amplifying voices for the use of the Framework for small
                                                                                 businesses.
                                                                                    But I think this 2.0 update process provides us a great oppor-
                                                                                 tunity to kind of reevaluate the Framework, reevaluate its utility
                                                                                 for small businesses, and I would say more importantly, or just as
                                                                                 importantly, the types of derivative resources we can produce to
                                                                                 really help make it more consumable and digestible for small orga-
                                                                                 nizations.
                                                                                    I think that common language that it provides is probably the
                                                                                 greatest value provision, if you will, for the framework, because it
                                                                                 can speak to and be understood by non-cybersecurity, non-technical
                                                                                 folks, maybe the folks that understand mission and risk, maybe not
                                                                                 cybersecurity risk, but they understand risk, and being able to talk
                                                                                 about cybersecurity risk in that bigger enterprise risk discussion,
                                                                                 whether your enterprise is 10 people in a coffee shop or a brewpub,
                                                                                 or a much larger multinational organization. We think there is a
                                                                                 lot of value in that, and we are excited to continue to get feedback
                                                                                 during this draft comment period to help further inform the frame-
                                                                                 work.
                                                                                    Senator HICKENLOOPER. And I have not seen this in previous dis-
                                                                                 cussions. That common language, I agree with you, is crucial. In
                                                                                 a funny way it almost allows you to be able to measure and begin
                                                                                 to define increments of measure, which allows one to create not
                                                                                 only defenses but solutions when you have been hacked.
                                                                                    How does that integrate? In other words, are you trying to figure
                                                                                 out the increments of measure by which you could classify attacks
                                                                                 as part of this overall language that is being created?

dmwilson on DSKJM0X7X2PROD with HEARINGS
                                                                                    Mr. STINE. Measurement is a challenging area in the cybersecu-
                                                                                 rity space, especially for a precision measurement organization like

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                                                                                 NIST. I do not know that you are going to get down to the next-
                                                                                 best——
                                                                                    Senator HICKENLOOPER. Atomic clocks.
                                                                                    Mr. STINE. Yeah. We do have that, and that is a very precise
                                                                                 measurement and a lot of value there. Cybersecurity is a different
                                                                                 beast at times. But certainly there are things that you can measure
                                                                                 today.
                                                                                    But I think the value, again, of the Cybersecurity Framework,
                                                                                 again, that common language and taxonomy is bringing in a whole
                                                                                 different set of users to the cybersecurity discussion, which is tre-
                                                                                 mendously valuable. It is not just the technologists and the cyber-
                                                                                 security professionals. It is the educators. It is the lawyers. It is
                                                                                 the human resources professionals. And I think as more folks, kind
                                                                                 of that ‘‘big tent’’ approach, as more folks become part of that tent
                                                                                 and that community there are going to be new and innovative ways
                                                                                 to not only use the Framework but also the technologies and the
                                                                                 services and the approaches to help achieve those outcomes that
                                                                                 are expressed in the framework. We are going to learn a lot about
                                                                                 that and help improve future versions as well.
                                                                                    Senator HICKENLOOPER. I think that is one of the amazing things
                                                                                 about NIST. Again, the United States is home to a center. I mean,
                                                                                 most of us in business learned early on that what gets measured
                                                                                 is what is gets done. If you cannot measure things you are going
                                                                                 to have a hard time achieving results. And yet in something like
                                                                                 this it is growing at a rate that makes it almost impossible to have
                                                                                 a common language, let alone to measure the different things. That
                                                                                 framework of language you are creating is actually going to allow—
                                                                                 it is a little bit the same thing with fighting climate change, that
                                                                                 we do not have the capability to measure accurately climate-chang-
                                                                                 ing emissions at the level at the level it needs to be done to really
                                                                                 address it. But NIST will figure that out as well.
                                                                                    Mr. STINE. We are on it.
                                                                                    Senator HICKENLOOPER. I am not trying to alarm anybody. I just
                                                                                 want to make sure that they feel secure in NIST’s mission.
                                                                                    What other guidance do you think small businesses need in order
                                                                                 to deal with some of these cybersecurity risks?
                                                                                    Mr. STINE. There are a lot of standards and guidelines that exist
                                                                                 today in the cybersecurity and increasingly the privacy space. Cer-
                                                                                 tainly we produce a lot of those. Others produce them as well. But
                                                                                 I think, again, what we have heard very clearly from the small
                                                                                 business community and those that provide services to support
                                                                                 them are taking the voluminous guidance that might exist today
                                                                                 and really distilling it down into much more practical, actionable,
                                                                                 and consumable resources, things like Quick Start guides, tem-
                                                                                 plates, fact sheets, those types of things that can distill the some-
                                                                                 times very complex and potentially technical information into
                                                                                 something that is going to be a little bit more immediately action-
                                                                                 able.
                                                                                    And again, I used the phrase earlier, organizations are on the
                                                                                 journey. And as small businesses start on that journey and they
                                                                                 begin to improve there are certainly more robust resources that can
                                                                                 help them advance their cybersecurity capabilities.

dmwilson on DSKJM0X7X2PROD with HEARINGS
                                                                                    Senator HICKENLOOPER. And think that journey, there is a micro-
                                                                                 cosm going on 100 times or 1,000 times in any company. Each indi-

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                                                                                 vidual is going on that journey, and I think you are exactly right
                                                                                 to be able to find those increments of information so that they can
                                                                                 get on board and get engaged and grow into the complexity of the
                                                                                 subject and hopefully help create those increments of measure as
                                                                                 we go down the road.
                                                                                    Obviously, just extending that train of thought, small businesses
                                                                                 are part of a larger food chain, as it were. Maybe that is an inap-
                                                                                 propriate word, but let’s call it a supply chain, to stay with a more
                                                                                 acceptable business nomenclature. Obviously, the smaller firms are
                                                                                 vital parts of the supply chains that bigger companies count on,
                                                                                 and we have seen this frequently since the pandemic, that when
                                                                                 these supply chains get interrupted it disrupts our entire economy.
                                                                                    What is NIST doing to help secure or make more secure these
                                                                                 complex supply chains that integrate small, medium, and large
                                                                                 businesses?
                                                                                    Mr. STINE. Yeah, you are absolutely right, and this is such a crit-
                                                                                 ical topic for so many organizations. We have a longstanding pro-
                                                                                 gram, an area of focus on cybersecurity supply chain risk manage-
                                                                                 ment, so helping organizations better understand and manage the
                                                                                 cybersecurity risks in the context of their supply chain activities.
                                                                                 We certainly have produced guidance and different types of best
                                                                                 practices that we have kind of gleaned from the best practices of
                                                                                 other organizations over the years to really help organizations,
                                                                                 again, of all shapes and sizes across all different sectors, but par-
                                                                                 ticular small business, to better understand and then manage their
                                                                                 cybersecurity risks in the context of supply chains.
                                                                                    You know, every organization, large or small, is either a producer
                                                                                 of technologies or services but also a consumer of those same serv-
                                                                                 ices. So I think one of the frequent pieces of feedback we provide
                                                                                 to small businesses, and certainly even large businesses as well, as
                                                                                 they are interacting with smalls, is understanding and having more
                                                                                 visibility into your supply chains, understanding what you are pro-
                                                                                 viding, what the expectations are from you, and then being able to
                                                                                 clearly express what those capabilities are from a cybersecurity
                                                                                 perspective.
                                                                                    I think increasingly we are also trying to take the standards and
                                                                                 guidance and other technologies and practices that exist today and
                                                                                 begin to demonstrate very practical example implementations of
                                                                                 those, in the supply chain space in particular, through our National
                                                                                 Cybersecurity Center of Excellence to provide, in some cases, some
                                                                                 blueprints and some worked examples that can give really any or-
                                                                                 ganization, but I think increasingly small businesses a better start-
                                                                                 ing place on this journey as well.
                                                                                    Senator HICKENLOOPER. Right. Michael, are we out of time?
                                                                                 What is your sense of this, for the first panel. We are good? So I
                                                                                 can ask another question. Good. Check with John Conrad because
                                                                                 I do not really trust you, Michael. No, I am just kidding. I am just
                                                                                 kidding. [Laughter.]
                                                                                    Senator HICKENLOOPER. It is all about security. It is all about se-
                                                                                 curity.
                                                                                    You were saying this, that so many small businesses lack the
                                                                                 time and the money and the personnel to really address cybersecu-

dmwilson on DSKJM0X7X2PROD with HEARINGS
                                                                                 rity and to assess what is necessary and the resources to create se-
                                                                                 curity. But if they could be provided the essential information, in

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                                                                                 a compact way, as you say, I think you used the word ‘‘digestible,’’
                                                                                 easily digestible, small businesses, I think, would make consist-
                                                                                 ently better decisions.
                                                                                    Is NIST able to coordinate, or are you already coordinating and
                                                                                 partnering with other agencies in the Federal Government, such as
                                                                                 the SBA here today, to ensure that small businesses are getting ac-
                                                                                 curate, the right information, to be prepared for threats and to be
                                                                                 able to respond?
                                                                                    Mr. STINE. We do work very closely with our interagency part-
                                                                                 ners and increasingly other organizations outside the Federal Gov-
                                                                                 ernment as well, and I think through programs like the Small
                                                                                 Business Cybersecurity Corner as well as the Community of Inter-
                                                                                 est that we just established, we think those are going to be very
                                                                                 helpful mechanisms as well to share resources from different parts
                                                                                 of the interagency, whether it is SBA, or the Federal Trade Com-
                                                                                 mission, our colleagues at the Department of Homeland Security,
                                                                                 and CISA in particular, and many others.
                                                                                    So there are a lot of opportunities for us to coordinate and col-
                                                                                 laborate across the interagency to bring those resources to bear.
                                                                                 And we do the same with many of our public sector or non-govern-
                                                                                 ment entities. For example, the National Cybersecurity Alliance is
                                                                                 another great resource that we work very closely with to help am-
                                                                                 plify their message, and vice versa.
                                                                                    We think there are plenty of resources. There are a lot of re-
                                                                                 sources. There are a lot of coordination opportunities, and we are
                                                                                 happy to coordinate and engage and play our part.
                                                                                    Senator HICKENLOOPER. And are you able to focus on some of the
                                                                                 networks that are smaller but make up the constituency that the
                                                                                 SBA services, say women-owned or minority-owned businesses?
                                                                                    Mr. STINE. We are, and I think that is where some of the oppor-
                                                                                 tunities working with even other commerce bureaus. Like the Mi-
                                                                                 nority Business Development Agency, for example, within the De-
                                                                                 partment of Commerce, or within NIST’s Manufacturing Extension
                                                                                 Partnership are two great mechanisms that have nationwide net-
                                                                                 works and tentacles out there, if you will, to help reach diverse
                                                                                 communities, including minority- and women-owned businesses. So
                                                                                 tremendous value there.
                                                                                    And I think part of the opportunity we have with the Cybersecu-
                                                                                 rity Framework 2.0 update process is we really need to double
                                                                                 down in our engagement with more diverse parts of the community
                                                                                 to get their unique feedback to help inform the framework so that
                                                                                 it can be the most useful for all involved.
                                                                                    Senator HICKENLOOPER. Right. Last question, and I appreciate
                                                                                 that. Obviously, companies large and small have to worry about cy-
                                                                                 bersecurity, as you have been explaining, but also concerns about
                                                                                 privacy, and different but similar, protecting the information of
                                                                                 their customers. These three issues kind of intersect in small firms
                                                                                 especially. So how do you help them address all three of these con-
                                                                                 cerns as efficiently as possible?
                                                                                    Mr. STINE. One of the most exciting parts and areas of most sig-
                                                                                 nificant growth in our broader program in NIST is our Privacy Pro-

dmwilson on DSKJM0X7X2PROD with HEARINGS
                                                                                 gram. We think there is just tremendous opportunity there, both
                                                                                 from the privacy risk management perspective but also the privacy-

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                                                                                 enhancing technologies perspective. There are a lot of very exciting
                                                                                 and innovative approaches that are out there.
                                                                                    We try to ensure that for all the potential points of integration
                                                                                 between cybersecurity and privacy, and there are many, many cy-
                                                                                 bersecurity standards and controls and capabilities help to improve
                                                                                 privacy protections as well, and that goes in both directions. So we
                                                                                 try to take every advantage of the relationships and the expertise
                                                                                 we have and the relationships we have in the community to high-
                                                                                 light those points of intersection and really work with the
                                                                                 innovators in the community to be able to produce the technologies
                                                                                 and the resources that can be most useful.
                                                                                    Senator HICKENLOOPER. Right. Absolutely. Well, I hate to inter-
                                                                                 rupt this but I look forward to continuing the conversations over
                                                                                 a cold beer at some point, to talk about something we do know how
                                                                                 to measure properly.
                                                                                    Mr. STINE. Yes, we do. We do that as well.
                                                                                    Senator HICKENLOOPER. Anyway, thank you so much for your
                                                                                 public service and investing so much of your life into something
                                                                                 that is clearly tremendously important to the country, but I think
                                                                                 underappreciated by most of the public. So that is always when
                                                                                 public service is at its most public that you have to go on the line
                                                                                 day in and day out and provide answers to difficult questions, and
                                                                                 the public not really appreciating what you do. I think over the
                                                                                 next few years the public will more and more appreciate people like
                                                                                 yourself that are really working so hard to keep us safe. So thank
                                                                                 you very much.
                                                                                    Mr. STINE. Thank you, sir. I appreciate it.
                                                                                    [Applause.]
                                                                                    [Break.]
                                                                                    Senator HICKENLOOPER. The only places you see such a rapid
                                                                                 change of sets is in Hollywood or Washington, D.C., but here we
                                                                                 are matching them in time.
                                                                                    I want to welcome back, although you really have not gone any-
                                                                                 where, but welcome back from the front row Gretchen Bliss, Alfred
                                                                                 Ortiz, and Dr. Shawn Murphy—Murray. One of my oldest friends
                                                                                 is named Shawn Murphy, and I am probably going to do that three
                                                                                 or four times over the course of the next hour.
                                                                                    Anyway, Gretchen is the Director of Cybersecurity Programs at
                                                                                 the University of Colorado, Colorado Springs, which we mentioned
                                                                                 earlier, Alfred Ortiz is the CEO of CSD Cyber, and Dr. Murray is
                                                                                 the President-Elect of the Information Systems Security Associa-
                                                                                 tion.
                                                                                    [Applause.]
                                                                                    Senator HICKENLOOPER. That was a better plug than I thought.
                                                                                    All right. First a question that you can each do in turn. Gretch-
                                                                                 en, we will start with you and just work down the line. Obviously,
                                                                                 cybersecurity is a bipartisan issue. It requires a whole-of-govern-
                                                                                 ment approach both to assessing the risk and trying to be able to
                                                                                 preempt the cyber threats that we know are out there. And I ap-
                                                                                 preciate all of you being here.
                                                                                    What is the number one issue each of you would recommend we

dmwilson on DSKJM0X7X2PROD with HEARINGS
                                                                                 highlight as we work with the executive branch on ways to help
                                                                                 small businesses safeguard their data? You are all experts.

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                                                                                   Oh, what am I saying? You are supposed to do introductory
                                                                                 statements and I went right to the questions. I get excited. What
                                                                                 can I say? I apologize. We will go and let each of you do your open-
                                                                                 ing statements, please.
                                                                                 STATEMENT OF GRETCHEN BLISS, DIRECTOR OF CYBERSECU-
                                                                                  RITY PROGRAMS, CYBERSECURITY PROGRAMS OFFICE, UNI-
                                                                                  VERSITY OF COLORADO, COLORADO SPRINGS, CO
                                                                                    Ms. BLISS. Thank you so much. As the Senator mentioned, I am
                                                                                 Gretchen Bliss. I am the Director of Cybersecurity Programs at the
                                                                                 University of Colorado, Colorado Springs. I am very honored to be
                                                                                 here, to be invited to discuss my thoughts and background in bring-
                                                                                 ing cybersecurity, small business, education, and students together
                                                                                 to raise the bar on cybersecurity for all.
                                                                                    The Colorado Springs ecosystem has been developing for at least
                                                                                 the last 9 years into a coalition of the willing that connects edu-
                                                                                 cation, industry, government, and community. The workforce de-
                                                                                 mand for cybersecurity professionals is huge. Over 663,000 jobs are
                                                                                 available today across the nation, 22,641 of those in Colorado
                                                                                 alone.
                                                                                    Cybersecurity is needed across all industry sectors, not just for
                                                                                 military or government contractors, agencies, and departments.
                                                                                 The National Cybersecurity Workforce and Education Strategy that
                                                                                 was recently released, stated that, ‘‘Responsibility for defending
                                                                                 cyberspace should be shifted from individuals and small businesses
                                                                                 to the most capable actors in cyberspace, and vigorous collaboration
                                                                                 among education, labor, and commercial stakeholders is essential
                                                                                 to success.’’
                                                                                    Small Businesses face mounting and expanding challenges re-
                                                                                 garding cybersecurity protection and threats. To underscore the
                                                                                 need, Forbes reports that in 2021 alone, 70 percent of ransomware
                                                                                 attacks were directed at small and mid-sized businesses.
                                                                                    We are currently leveraging several federally funded initiatives
                                                                                 to support collaboration among education and small business.
                                                                                 Years back, our Pikes Peak State College team received a Regional
                                                                                 Alliances and Multistakeholder Partnerships to Stimulate—
                                                                                 RAMPS, another great acronym—grant from NIST’s NICE, since
                                                                                 Kevin already covered that. We built the Cyber Prep program,
                                                                                 where 17 high school students in the summer were paired with 14
                                                                                 small businesses, some of them sitting at this table, and they had
                                                                                 a paid internship and got cybersecurity training sessions. The busi-
                                                                                 nesses were shocked at the depth of talent that high school stu-
                                                                                 dents possessed in cybersecurity. Two of the students have contin-
                                                                                 ued with their companies through college and beyond.
                                                                                    Of the over 400 U.S. institutions that the National Security
                                                                                 Agency has designated as Centers of Academic Excellence in Cyber-
                                                                                 security, 15 are in the state of Colorado. UCCS was the first CU
                                                                                 system school designated as a Center of Academic Excellence in
                                                                                 2012. The CAE program helps to standardize academic cybersecu-
                                                                                 rity programs. It provides grants to support the expansion and col-
                                                                                 laboration between these educational programs across the country.
                                                                                    Government and industry demand three things from a commu-

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                                                                                 nity student: a degree, industry-recognized certification, and hands-
                                                                                 on experience. The grants that the CAE has provided provide stu-

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                                                                                 dents with that experience and knowledge they need to be later
                                                                                 hired to support cybersecurity needs across industry.
                                                                                    Regionally, education and small business collaborate through the
                                                                                 Small Business Development Center programs. One called Cyber
                                                                                 Cover Your Assets, CYA, and the annual Colorado SBDC Network
                                                                                 Cybersecurity conference. This program was the first of its kind
                                                                                 and is leading programs nationwide. Small businesses work with
                                                                                 the SBDC under an 8-week cyber implementation program where
                                                                                 they receive risk assessment and education and budget-friendly so-
                                                                                 lutions to secure their business assets. In addition, community ex-
                                                                                 perts, small businesses—represented by my co-panelist Shawn
                                                                                 Murray—and high school and community college students conduct
                                                                                 cybersecurity hygiene checkups for small businesses.
                                                                                    We actually just found out late last night that the collaboration
                                                                                 between the SBDC, who is represented here, UCCS, NCC, and
                                                                                 Murray Security Services were awarded a $1 million grant from
                                                                                 SBA to bring cyber clinics, not unlike legal and medical clinics, to
                                                                                 students and small businesses to build resilience and collaboration
                                                                                 to solve those cybersecurity challenges.
                                                                                    [Applause.]
                                                                                    Ms. BLISS. Research is also fundamental to bringing businesses,
                                                                                 government, and students together to solve those wicked-hard
                                                                                 problems in cybersecurity. UCCS has a robust cybersecurity faculty
                                                                                 that was awarded over $19 million in government funds over the
                                                                                 past 3 years to conduct in-depth research for the Department of
                                                                                 Defense, Department of Energy, the National Science Foundation,
                                                                                 Cyber Command, Space Command, and industry partners. Re-
                                                                                 search not only solves complex problems but also prepares students
                                                                                 for industries’ workforce needs. Continued research funding across
                                                                                 government agencies remains critical to solving these problems.
                                                                                    The Space Information Sharing and Analysis Center, ISAC, is an
                                                                                 embedded partner with UCCS, over in our other building here, and
                                                                                 they have over 70 small, medium- and large-sized companies as
                                                                                 members. The Space ISAC facilitates collaboration against cyber
                                                                                 and space threats across the global space industry, enhancing in-
                                                                                 dustry preparation for, and in response to, vulnerabilities, inci-
                                                                                 dents, and threats. It also hosts a fellowship program for industry
                                                                                 and educational fellows. Cross-disciplinary organizations, such as
                                                                                 the Space ISAC, develop cyberspace resiliency throughout industry,
                                                                                 government, and education.
                                                                                    UCCS is leading the University of Colorado system and the state
                                                                                 in finding new and unique ways to create cybersecurity partner-
                                                                                 ships with small businesses. UCCS has developed a workforce pipe-
                                                                                 line that begins in K–12 and crosses into community colleges and
                                                                                 the CU system to ensure cyber capabilities are available to Colo-
                                                                                 rado at many levels. Over the past four years, UCCS has expanded
                                                                                 cybersecurity degrees and programs to 20 pathways across five col-
                                                                                 leges, beyond the longstanding cornerstone programs in our engi-
                                                                                 neering department at the bachelor’s, master’s and doctorate levels.
                                                                                    Programs can now be found in the College of Public Service with
                                                                                 a cyber law, policy, and forensics concentration; our Letters Arts
                                                                                 and Sciences with a Technical Communication and Information De-

dmwilson on DSKJM0X7X2PROD with HEARINGS
                                                                                 sign bachelor’s degree; our College of Business with Cybersecurity
                                                                                 Management degree at the bachelor’s, MBA, and DBA levels; and

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                                                                                 finally, the College of Education, where we do teacher prep work-
                                                                                 shops to bring cybersecurity into the classroom to make teachers
                                                                                 comfortable and share it with their students down to the middle
                                                                                 school level. Needless to say, UCCS believes strongly in cybersecu-
                                                                                 rity as an interdisciplinary necessity.
                                                                                    The nation benefits greatly from community programs such as
                                                                                 those at UCCS, NIST, NICE, CAE, Space ISAC, Colorado Springs
                                                                                 Community and SBDC. These programs develop a workforce so
                                                                                 direly needed to protect our national security and solve those hard
                                                                                 technical problems for the country. They bring small businesses to-
                                                                                 gether with education to create the future workforce that will solve
                                                                                 complex problems and raise the bar for cybersecurity nationwide.
                                                                                    [The prepared statement of Ms. Bliss follows:]

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                                                                                      Senator HICKENLOOPER. Thank you very much.
                                                                                      Mr. Ortiz.

                                                                                  STATEMENT OF ALFRED ORTIZ, CEO, CSD CYBER, COLORADO
                                                                                                     SPRINGS, CO
                                                                                    Mr. ORTIZ. Good afternoon, Senator Hickenlooper, staff, and
                                                                                 attendees. My name is Alfred Ortiz and I am the CEO of CSD
                                                                                 Cyber, with 20 years of cyber and IT experience, moving from cor-
                                                                                 porate America and starting my business over 5 years ago. As a
                                                                                 small Colorado-based enterprise, I understand what it takes to
                                                                                 grow a small business. In addition to CSD Cyber, I volunteer with
                                                                                 the local Pikes Peak SBDC as a cyber expert and serve as a mem-
                                                                                 ber of the board of directors for the local ISSA chapter. I have
                                                                                 taught undergraduate and graduate students with a focus on cyber-
                                                                                 security at the University of Colorado, Denver.
                                                                                    I have dedicated my working career to helping individuals and
                                                                                 firms keep their data safe from threats. My father and grandfather
                                                                                 were entrepreneurs, so owning a small business and understanding
                                                                                 its demands are embedded in my daily life as I work with people
                                                                                 from all facets of our society.
                                                                                    Cybersecurity is an all-partisan issue that affects Americans
                                                                                 from every strand of our society as they may be affected personally
                                                                                 and professionally. Approximately two-thirds of American business
                                                                                 comes from small and medium entrepreneurs, like me and many
                                                                                 attending today, and those whose small businesses are affected by
                                                                                 Federal legislation. Of these small enterprises, those with less than
                                                                                 50 employees, 47 percent of them, do not have a budget for cyberse-
                                                                                 curity. Adding to this, approximately 76 percent of SMBs, or 25.2
                                                                                 million businesses, have experienced a cyberattack in the last 6
                                                                                 months. Many will not recover. From malware, ransomware, to so-
                                                                                 cial engineering and other threats, small firms have more demands
                                                                                 with the least number of resources to defend themselves.
                                                                                    CSD can cite circumstances where we have helped companies at
                                                                                 all tiers. In one instance, we helped a small bank comply with Fed-
                                                                                 eral regulations, and a Fortune 50 company to do the same. An-
                                                                                 other time, CSD worked with a town to demonstrate the
                                                                                 vulnerabilities of their water utility system so the residents can
                                                                                 have safe drinking water, and we helped a local gym in securing
                                                                                 their wireless network so their members can listen to their music
                                                                                 safely as they work out.
                                                                                    At times, firms like these do not know where to go for help or
                                                                                 are limited on resources and might not know who to trust, they
                                                                                 may have to decide on buying that new piece of capital equipment,
                                                                                 fly to meet a client, or spend on advertising, not thinking about se-
                                                                                 curing their vital data and that of their clients.
                                                                                    Advocating for small business, CSD Cyber launched an SMB
                                                                                 store on the Fourth of July this year for this very reason, to give
                                                                                 SMBs options where they can go to for help with a reasonable
                                                                                 price. With larger consulting firms charging over $500 an hour, we
                                                                                 hope to change the rules by giving small business a fighting
                                                                                 chance. Spending on cybersecurity is a necessity for today’s market,

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                                                                                 yet every firm knows that driving revenues is the lifeblood of their
                                                                                 business.

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                                                                                    The U.S. Federal Government is the largest buyer of goods and
                                                                                 services in our country. With that, our small and medium busi-
                                                                                 nesses make up over two-thirds of our economy and should have
                                                                                 a fair shake at the table for business.
                                                                                    When the CHIPS and Science Act was invoked, President Biden
                                                                                 stated that it represents ‘‘a once-in-a-generation investment in
                                                                                 America itself.’’ With approximately $57.2 billion to be funded, one
                                                                                 might ask, were set-asides for SMBs and minority firms placed in
                                                                                 the legislation so larger corporations could contract and fulfil their
                                                                                 obligations with this Federal funding?
                                                                                    More importantly, there needs to be considerations for small
                                                                                 business to make it easier to participate in the Federal bidding
                                                                                 process. When it takes 3 to 6 months to fill out a bid for an oppor-
                                                                                 tunity and another year to 18 months to wait for the award, many
                                                                                 small businesses cannot sustain that cycle.
                                                                                    If these small enterprises do not sustain themselves with reve-
                                                                                 nues and cybersecurity investment the Federal Government may
                                                                                 have a three-fold problem: One, vital data on Americans may be
                                                                                 lost to the dark web; two, for every SBA loan that fails, a person
                                                                                 and their family will fall under that burden and lastly the Federal
                                                                                 government will lose tax revenues. In short, cybersecurity is an all-
                                                                                 American issue that affects American business.
                                                                                    In conclusion, I am here before you with an unwavering commit-
                                                                                 ment to the pivotal realms of cybersecurity, small business pros-
                                                                                 perity, and legislative foresight. As a CEO, educator, and citizen,
                                                                                 I come armed with a wealth of IT experience and the enduring leg-
                                                                                 acy of my family’s entrepreneurial spirit.
                                                                                    The resonance of our dialogue today reverberates far beyond
                                                                                 these walls, underscoring the urgency of safeguarding data in a
                                                                                 digital age, touching every facet of American society. Through the
                                                                                 lens of CSD Cyber’s transformative collaborations, I have witnessed
                                                                                 firsthand the pressing need for accessible solutions that empower
                                                                                 entities of all scales to secure their futures.
                                                                                    As we forge ahead into an era of legislative possibilities, let us
                                                                                 champion the inclusion of small and minority businesses as inte-
                                                                                 gral contributors, fueled by equitable opportunities and stream-
                                                                                 lined processes. Together, we have the power to reshape the trajec-
                                                                                 tory of our economy, bolstering its very foundation with the resil-
                                                                                 ience of entrepreneurship and the fortified defense of cybersecurity.
                                                                                    Thank you, Senator Hickenlooper, staff, and guests. I will now
                                                                                 hand back my time to you, Senator.
                                                                                    [The prepared statement of Mr. Ortiz follows:]

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                                                                                      Senator HICKENLOOPER. Thank you. Thank you, Alfred.
                                                                                      Dr. Murray.
                                                                                 STATEMENT OF SHAWN P. MURRAY, Ph.D., PRESIDENT-ELECT,
                                                                                  INTERNATIONAL BOARD OF DIRECTORS, INFORMATION SYS-
                                                                                  TEMS SECURITY ASSOCIATION, COLORADO SPRINGS, CO
                                                                                    Mr. MURRAY. Thank you, Senator. As mentioned, my name is
                                                                                 Shawn Murray. I am the President and Chief Academic Officer at
                                                                                 Murray Security Services, and I am the new President-Elect for the
                                                                                 oldest and largest professional industry-driven cybersecurity infor-
                                                                                 mation association in the world.
                                                                                    [Applause.]
                                                                                    Mr. MURRAY. Senator Hickenlooper, Chairman Cardin and other
                                                                                 members of the Committee, thank you for this opportunity to ad-
                                                                                 dress an area of national interest addressing cybersecurity con-
                                                                                 cerns for small businesses in the United States. As a practitioner
                                                                                 and educator, it is my intent to make you aware of some very im-
                                                                                 portant information which can be used to influence decisions re-
                                                                                 lated to information privacy and cybersecurity.
                                                                                    Today, we know that 80 percent of most organizations’ business
                                                                                 processes are automated, meaning that we are using some type of
                                                                                 technology to process, transmit, or store information related to a
                                                                                 job task that are performed by employees. There can be risk associ-
                                                                                 ated with these processes if the employees and business managers
                                                                                 do not consider security as part of awareness. The following statis-
                                                                                 tics associated with cybersecurity trends for small and mid-sized
                                                                                 businesses include:
                                                                                    According to the National Cybersecurity Alliance, 70 percent of
                                                                                 cyberattacks target small to mid-sized businesses. The Ponemon
                                                                                 Institute reports that the average cost of a breach for small or
                                                                                 midsized business, per incident, is $383,000. According to the Bet-
                                                                                 ter Business Bureau, 50 percent will become unprofitable within a
                                                                                 month of being breached. Finally, Gartner published in its Top
                                                                                 Trends in Cybersecurity 2023 report that 60 percent of small busi-
                                                                                 nesses that are victims of a cyberattack go out of business within
                                                                                 6 months, and overall, cybercrime costs small and medium busi-
                                                                                 nesses more than $2.2 million a year.
                                                                                    In the 2023 Data Breach Investigations Report published by
                                                                                 Verizon every year, ‘‘Ransomware continues to be a major threat
                                                                                 for organizations of all sizes and industries and is present in 24
                                                                                 percent of breaches. Of those cases, 94 percent fall within system
                                                                                 intrusion’’; ‘‘74 percent of all breaches include the human element,
                                                                                 with people being involved either via error, privilege misuse, use
                                                                                 of stolen credentials or social engineering’’; ‘‘83 percent of breaches
                                                                                 involved external actors, and the primary motivation for attacks
                                                                                 continues to be overwhelmingly financially driven, at 95 percent.’’
                                                                                    The coronavirus pandemic saw a significant increase of remote
                                                                                 workers and an investment of online technology, remote meeting
                                                                                 applications, and cloud-based business resource subscriptions. The
                                                                                 initial focus of small businesses was to get connected to resources.
                                                                                 Unfortunately, security was often not considered until the business
                                                                                 began experiencing data breaches, interception of remote meetings

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                                                                                 and unauthorized disclosure of sensitive information on non-com-
                                                                                 pany-owned devices. While cloud and remote computing have in-

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                                                                                 creased productivity and business capabilities, they have increased
                                                                                 the cyberattack terrain.
                                                                                    In the last 2 years our team at Murray Security Services per-
                                                                                 formed assessments on small and medium-sized businesses in mul-
                                                                                 tiple industries and in multiple states across the country. Some of
                                                                                 the top issues we have seen, personally, include social engineering
                                                                                 people to disclose things like user names and passwords, sensitive
                                                                                 product information and personal identifiable information; lack of
                                                                                 dedicated IT or cybersecurity resources; uncontrolled access to sen-
                                                                                 sitive areas of a building—if I can get physical access, the rest is
                                                                                 even easier; sensitive information found in trash cans, dumpsters
                                                                                 and in unattended workspaces; computer applications or equipment
                                                                                 that are vulnerable to cyber-attacks due to missing patches or
                                                                                 misconfigurations.
                                                                                    Cybersecurity is primarily about protecting information. Some of
                                                                                 the most sensitive information that needs to be protected is privacy
                                                                                 information. This means that the relationship between cybersecu-
                                                                                 rity and privacy data and information is significant. While the
                                                                                 United States has many various privacy laws related to highly reg-
                                                                                 ulated industries like banking and finance as well as healthcare,
                                                                                 we do not yet have an overarching national privacy law such as the
                                                                                 General Data Protection Regulation in the EU.
                                                                                    A current bill being considered, since 2019, called the ‘‘Safe Data
                                                                                 Act’’ would address many of these areas. Instead, businesses have
                                                                                 to navigate the complexity of 50 states’ privacy and cybersecurity
                                                                                 laws, which can become overwhelming and very time consuming.
                                                                                    The United States provides, as Al mentioned, one of the largest
                                                                                 procurements of small business resources. To be considered, busi-
                                                                                 nesses now have to comply with cybersecurity hygiene require-
                                                                                 ments as identified by FedRamp, the Cybersecurity Maturity Model
                                                                                 Certification, as mentioned previously by Mr. Stine, the NIST Spe-
                                                                                 cial Pub 800–171 Protecting Controlled Unclassified Information,
                                                                                 CUL—another acronym—in nonfederal systems and organizations,
                                                                                 as well as other requirements identified in the Federal Acquisition
                                                                                 regulation.
                                                                                    Small businesses need access to free resources for education and
                                                                                 training to understand these requirements. Based on recently
                                                                                 passed legislation, SBDCs now require a cybersecurity lead center
                                                                                 to support their small business clients to help address cyber issues.
                                                                                 SBA should require additional dedicated funding to better develop
                                                                                 standardized programs across SBDCs and SCOREs for consistent
                                                                                 training and education as well as cyber-related resources to help
                                                                                 protect small businesses. An example of this is the America’s SBDC
                                                                                 North Star program which represents the overarching efforts of the
                                                                                 America’s SBDC network to mitigate cyber threats to small busi-
                                                                                 nesses. Dedicated funding would allow consistent cyber program-
                                                                                 ming instead of having to chase funding through grant proposals
                                                                                 each year.
                                                                                    For small businesses, an additional resource to consider is the
                                                                                 Center for Internet Security which provides CIS critical security
                                                                                 controls and benchmarks for a prioritized set of actions to protect
                                                                                 organizations and data from cyberattack vectors.

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                                                                                    For small businesses the three primary areas to focus are secu-
                                                                                 rity awareness and skills training, data recovery, and access con-

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                                                                                 trol management. The National Institute of Standards and Tech-
                                                                                 nology provides additional guidance and resources as discussed in
                                                                                 Mr. Stine’s testimony.
                                                                                   In closing, cyber threats pose a significant challenge to our coun-
                                                                                 try, our businesses and to our national security. A disruption to
                                                                                 commerce due to threat actors attacking businesses should be con-
                                                                                 sidered a serious threat to our economic viability. With the onset
                                                                                 of new technological advances such as artificial intelligence and the
                                                                                 Internet of Things, there needs to be dedicated resources to edu-
                                                                                 cate, train, and advise business owners and leaders on achieving
                                                                                 appropriate cybersecurity hygiene to protect their business as well
                                                                                 as their information.
                                                                                   Again, thank you for this opportunity to testify in front of you
                                                                                 today.
                                                                                   [The prepared statement of Mr. Murray follows:]

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                                                                                    Senator HICKENLOOPER. Thank you, Shawn. I appreciate it. I ap-
                                                                                 preciate all of you being here. I am so glad I gave you a chance
                                                                                 to make your opening comments.
                                                                                    So I will repeat my first question that I so inelegantly began
                                                                                 with. This is a bipartisan issue. It is going to require a whole-of-
                                                                                 government response to make sure that we are able to allow small
                                                                                 businesses to preempt the risk of cyberattacks. I appreciate Kevin’s
                                                                                 time with us today and all the work that NIST is doing, moved
                                                                                 light years in a very short period of time.
                                                                                    Just each of you, just to start, what would be the one issue you
                                                                                 would recommend we highlight as we work with the executive
                                                                                 branch on the Federal Government on ways that small businesses
                                                                                 can safeguard their data.
                                                                                    Ms. BLISS. Senator, because I am the educator on this panel, al-
                                                                                 though you all are educators, we all do this, I think you need to
                                                                                 make it a team sport, and we have to think about it longer term
                                                                                 and look for very unique, diverse teams to solve not just the cur-
                                                                                 rent problems but come up with a way, in that K-to-gray mindset,
                                                                                 that we can then bring those students into this conversation so
                                                                                 that we are not having people having the problems that we have
                                                                                 today.
                                                                                    So if we have that baseline across the education system, then as
                                                                                 people build their businesses they will build that resiliency in cy-
                                                                                 bersecurity in because they will be aware of how to do that. Obvi-
                                                                                 ously, resource is a big part of that, and I know you guys will talk
                                                                                 to that.
                                                                                    But I think the education and training piece of taking a non-tra-
                                                                                 ditional approach than we have had in the past with the silos, and
                                                                                 this is how education works, or this is how training works, and
                                                                                 blending that together, kind of like we are going to do on our
                                                                                 grants—we are going to test it out—I think is the way we can move
                                                                                 forward to solve the future problems. Because I feel like we are
                                                                                 chasing our tails today, but if we look at it bigger term we can
                                                                                 solve longer-term problems.
                                                                                    Senator HICKENLOOPER. Alfred.
                                                                                    Mr. ORTIZ. Senator, so my late father-in-law used to say edu-
                                                                                 cation is the great equalizer, and I think the cyberspace is no dif-
                                                                                 ferent. I think if we can get these new businesses, these smaller
                                                                                 businesses I mentioned before, and be able to educate those folks
                                                                                 before they get an SBA loan, or before they take that next step, the
                                                                                 same way that they would go get an attorney and an accountant
                                                                                 to do their books, they should go take a couple of classes in cyber-
                                                                                 security at SBDC with one of us who is a certified-slash-educator
                                                                                 in this space, and I think it would really help.
                                                                                    We are really on the next generation of where IT and cyber
                                                                                 meets. You know, I am aging myself, but those Commodore 64’s
                                                                                 and all of those computers are old school, and we are now in that
                                                                                 next generation or age. So I think education and certainly funding
                                                                                 behind that to get these small businesses going will certainly take
                                                                                 us to that next level.
                                                                                    Senator HICKENLOOPER. Great.
                                                                                    Mr. MURRAY. Senator, thanks. You know, my colleagues here

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                                                                                 have identified a lot of the training and education so I will take a
                                                                                 different approach to it, and that is collaboration, collaboration, col-

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                                                                                 laboration. Here in our own ecosystem there is so much that is
                                                                                 going on here in our community, from IT and cyber perspective.
                                                                                   We looked at a capability to build a level of collaboration by cre-
                                                                                 ating a program called the Cyber Leadership Roundtable. Aikta
                                                                                 Marcoulier, who is our Regional Director for SBA, was our SBDC
                                                                                 Director at the time. She and I both co-chair that organization. We
                                                                                 actually have a charter. We have various goals and objectives to be
                                                                                 able to collaborate and achieve different things.
                                                                                   The idea here is we do not compete with cyber resources. So if
                                                                                 our local chapter for ISSA is running an event, we will not run a
                                                                                 different event to compete with it. We will collaborate with them,
                                                                                 and we will share the space, and we will send out the message.
                                                                                   You know, the example of winning this grant is an example of
                                                                                 that collaboration that came out of the Cyber Leadership Round-
                                                                                 table, where we now have multiple organizations that can collabo-
                                                                                 rate together to get more opportunity to get grants and funding.
                                                                                   So state and local resource, look at your ecosystem, understand
                                                                                 who the movers and shakers are, commit to be able to collaborate
                                                                                 to solve problems.
                                                                                   Senator HICKENLOOPER. All right. Well, that collaboration, I
                                                                                 could not agree more. More education, more collaboration, those are
                                                                                 the two hallmarks. And in a funny way, when this facility was ac-
                                                                                 tually put together that idea of having education, universities col-
                                                                                 laborating with small businesses and larger businesses, but also
                                                                                 working with government was kind of first and foremost in
                                                                                 everybody’s mind. And there is nothing stronger, and something
                                                                                 that really does set us aside from most of our rivals in the world.
                                                                                   Gretchen, why don’t I start with you in terms of the evolving
                                                                                 state of the workforce in cybersecurity. As we move towards deploy-
                                                                                 ing more and more 5G networks and beyond and further enabling,
                                                                                 let’s call it, the Internet of Things everywhere, how is the demand
                                                                                 for cybersecurity professionals going to change? How do you keep
                                                                                 up with that?
                                                                                   Ms. BLISS. That is the million-dollar question.
                                                                                   Senator HICKENLOOPER. Who is going to pay me?
                                                                                   Ms. BLISS. You know, the issue with this is that when you think
                                                                                 about education systems, a lot of times I use history as an example.
                                                                                 My mom is a history professor. You know, the battles happened on
                                                                                 a certain day and you get to learn that, and you get to put it in
                                                                                 context. But in cybersecurity it changes every single day, and so
                                                                                 that demand is that currency. We have to increase not only the
                                                                                 numbers, we have to increase the diversity that we have in cyber-
                                                                                 security. We have to diversify the experience.
                                                                                   You know, as my example of all the programs across all the
                                                                                 interdisciplinaries we have, plus the training and education piece
                                                                                 that we do, I feel that we really have to be able to respond to the
                                                                                 evolution of the threat, and that is something that we do chase our
                                                                                 tails on. And if there is a way that we could tweak the education
                                                                                 system so that it can be more dynamic and interactive, with indus-
                                                                                 try, with government, again, that kind of team sport, if we can ap-
                                                                                 proach it that way, I think what is going to happen is that the pro-
                                                                                 fessionals need to be that adaptable. They need to be able to move

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                                                                                 into different areas and not get stuck in stovepipes, which edu-
                                                                                 cation tends to do.

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                                                                                    But that hands-on experience piece that we get from our part-
                                                                                 ners I think broadens that, so those students, those employees,
                                                                                 that workforce can be a little more dynamic and respond in dif-
                                                                                 ferent industry sectors and create some sort of commonality be-
                                                                                 tween them.
                                                                                    Senator HICKENLOOPER. And in that evolving world of education,
                                                                                 that assumes, I guess, a constantly changing and improving and
                                                                                 more essential group of foundational concepts and applications that
                                                                                 people have to learn, just to begin their journey.
                                                                                    Ms. BLISS. Absolutely. The thing I always say is it is a purple
                                                                                 unicorn. You guys have heard me say this a lot. You have got to
                                                                                 get a degree of some sort, you have got to get hands-on experience,
                                                                                 and you have to get an industry credential, and educational pro-
                                                                                 grams do not necessarily wrap themselves around those three
                                                                                 ideas.
                                                                                    So I feel like through the CAE program we are embracing that
                                                                                 diversity to try and build programs that can be that dynamic and
                                                                                 responsive.
                                                                                    Senator HICKENLOOPER. I agree. We sometimes lose track in the
                                                                                 race for education that there is supposed to be a good job and a
                                                                                 career attached to that.
                                                                                    Mr. Ortiz—I am going to call you Alfred, first thing. I have
                                                                                 known Gretchen now. We are not a Washington——
                                                                                    Mr. ORTIZ. This is Colorado.
                                                                                    Senator HICKENLOOPER. Yeah, exactly. Alfred, we are going to
                                                                                 take off our ties, you know.
                                                                                    Mr. ORTIZ. Where is that beer?
                                                                                    Senator HICKENLOOPER. Cyber insurance can help businesses re-
                                                                                 spond to and recover from cyber incidents if they do occur. Our In-
                                                                                 sure Cybersecurity Act, which is a bill we worked on last year with
                                                                                 Senator Capito from West Virginia, offers, or will someday offer
                                                                                 clear information to businesses to businesses on how cyber insur-
                                                                                 ance works and how it can make their business more cyber resil-
                                                                                 ient.
                                                                                    How should small businesses evaluate cyber insurance, and is
                                                                                 there some benefit to clear and simple information that helps them
                                                                                 make better informed decisions?
                                                                                    Mr. ORTIZ. I think that it is a little bit tough in some instances
                                                                                 with regard to the types of business you get into. So for example,
                                                                                 if you have a small medical firm that is worried about HIPAA com-
                                                                                 pliance and things of that nature the risk may be higher than if
                                                                                 it were to be, let’s say, automotive repair shop, like my father used
                                                                                 to have. Where is that data? What type of risk is out there? And
                                                                                 how much is that risk going to cost the owner of that company?
                                                                                    To the point that I think depending on the industry, whether it
                                                                                 be NAIC codes that you could use to be able to say this particular
                                                                                 code would say that this business has this level of risk, in general,
                                                                                 may help with regard to appropriately getting the right amount of
                                                                                 cyber insurance. So that could be a possible way to tie in the risk
                                                                                 with the type of business vertical that you are looking at.
                                                                                    Obviously, the more, the better, but because of the amount of
                                                                                 cyberattacks, that insurance amount may be going up as well.

dmwilson on DSKJM0X7X2PROD with HEARINGS
                                                                                    Senator HICKENLOOPER. Yeah, and I think we talked about a lit-
                                                                                 tle of this with Kevin, you know, having the right language so that

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                                                                                 people understand these risks and maybe some of the increments
                                                                                 as we become better able to understand them ourselves, would
                                                                                 have value as well.
                                                                                    Mr. MURRAY. Senator, if I may add to that, the complexity of
                                                                                 cyber insurance has grown significantly over just the last 5 years.
                                                                                 It does not matter what size your business is. You know, initially
                                                                                 when cyber insurance came out the underwriters were going like,
                                                                                 ‘‘Cyber insurance? Free money,’’ and then all of a sudden we start-
                                                                                 ed making claims and breaches, and the costs associated with those
                                                                                 highly regulated industries, as Al mentioned.
                                                                                    Now, cybersecurity underwriters are putting in amount of rigor
                                                                                 in your policy that says you will have antivirus, you will have an
                                                                                 assessment, you will protect sensitive information or data, and if
                                                                                 you do not, we are not going to pay the breach, to a point where
                                                                                 you may have to have an assessment hired by the insurance com-
                                                                                 pany after a breach happens, and if they can prove that you did
                                                                                 not do what you were supposed to, your due diligence, they are not
                                                                                 going to pay anymore.
                                                                                    Senator HICKENLOOPER. All right. It is a little bit like the issues
                                                                                 we face, different states face around insurance for wildfires. With
                                                                                 climate change and deeper droughts all over the country we see
                                                                                 greater risk, and the insurance companies are still trying to catch
                                                                                 up. You cannot have wooden roofs. You cannot have scrub grass
                                                                                 coming up to the side of your house, wooden decks, all those things
                                                                                 that invite a fire. I think the same thing is true in cyber, right?
                                                                                    Mr. MURRAY. Right. It is evolving.
                                                                                    Senator HICKENLOOPER. Yeah. And the rate of change, and we
                                                                                 were talking about this earlier when we were—our green room was
                                                                                 not really green, but when we were talking beforehand—the rate
                                                                                 of change is only accelerating, and I think that is going to really
                                                                                 require the universities, the private sector, and government to real-
                                                                                 ly step and make sure that we can keep up so that small busi-
                                                                                 nesses do not get wiped away.
                                                                                    I thought some of the statistics, Shawn, that you gave of once
                                                                                 you are breached what the possibility is that you end up out of
                                                                                 business in a year was truly startling, and something certainly the
                                                                                 SBA should be pushing out there.
                                                                                    Gretchen, small businesses—Shawn, you helped with the pre-
                                                                                 vious question so you almost lost your own question—small busi-
                                                                                 nesses owners are in industries often with comparatively less expo-
                                                                                 sure to cyber threats. I am not aware of a brewpub that has been
                                                                                 hacked yet. They are often focused on other priorities—building
                                                                                 your sales, creating the team, running your business.
                                                                                    In your experience of cybersecurity training how aware would
                                                                                 you say, on the broad arc of small business owners, how aware of
                                                                                 they in various industries of digital threats and of the cost-effective
                                                                                 strategies to be ready?
                                                                                    Mr. MURRAY. So it is a great question. I think all small busi-
                                                                                 nesses, whether it is Al’s dad’s automotive mechanic shop or it is
                                                                                 the food truck or a hospitality organization, or a highly regulated
                                                                                 industry, a small clinic, insurance company, my accountant, every-
                                                                                 one is aware of the cyber threats these days. Certain world events

dmwilson on DSKJM0X7X2PROD with HEARINGS
                                                                                 like the invasion of Ukraine with Russia and all of a sudden there
                                                                                 is a significance in how is Russia going to fund what it needs to

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                                                                                 do. Well, ransomware, we still know, is one of the most significant
                                                                                 areas where we have a lot of attacks, so we need to be aware of
                                                                                 that. Small businesses were afraid of what was going to happen
                                                                                 during that time frame.
                                                                                    So literally, a partnership with our SBDC, we came up with a
                                                                                 white paper to pass out to all of our small business clients to edu-
                                                                                 cate them on what they could be doing and should be doing, and
                                                                                 that is focusing on understanding what your critical assets are
                                                                                 within your organization, understand what critical processes that
                                                                                 you have. We had an electric company that they had one person
                                                                                 that did payroll for a 54-person company. That person got in a car
                                                                                 accident and was in a coma for 3 or 4 days. Nobody else knew how
                                                                                 to do payroll.
                                                                                    So because that critical process was not understood, and they did
                                                                                 not have that backup person, they hired us to come in, try and
                                                                                 hack into the payroll system—well, you have an IT person, we can
                                                                                 get it there, but where is it documented how they do payroll?
                                                                                    So luckily she came out in a few days and they were able to fig-
                                                                                 ure that out. In the meantime, we advised the client, go ahead and
                                                                                 run the same payroll that you did, contact your bank, run the same
                                                                                 payroll as you did last time. You will have to figure out who has
                                                                                 got overtime, on vacation. But again, understanding the critical as-
                                                                                 sets, those critical processes, understanding how to back those
                                                                                 areas up.
                                                                                    And then the threat of that cyberattack, when we talk about the
                                                                                 cyber threat itself, in educating, this is where the SBDCs come in.
                                                                                 So that Cyber CYA program, Cover Your Assets, that program and
                                                                                 its initial pilot allowed us to educate a select of about eight dif-
                                                                                 ferent businesses, where they got to participate in understanding
                                                                                 their own business. We helped them identify their critical proc-
                                                                                 esses, their critical assets, and they had to develop a plan at the
                                                                                 end. We actually did an assessment with them. At the end they
                                                                                 had to come up with a plan.
                                                                                    And a partnership that we had with the Better Business Bureau
                                                                                 stated if you actually execute your plan and you are a BBB mem-
                                                                                 ber, we will give you a Cyber Badge of Honor on your BBB profile
                                                                                 that says, ‘‘Hey, I am a business that is dedicated to protecting
                                                                                 your information as well as mine.’’
                                                                                    So those innovative programs to educate and train, outside of
                                                                                 regular academia, I think are important.
                                                                                    Senator HICKENLOOPER. And so you guys chime in. Since we are
                                                                                 not in Washington we can have a free-form discussion. Just do not
                                                                                 tell anyone.
                                                                                    Where would people find out about these kinds of programs? Ob-
                                                                                 viously you must have outreach through the SBA, SBDCs, and
                                                                                 what have you, but also through your organization. How would the
                                                                                 normal small business come across this if they were not connected
                                                                                 to the SBA?
                                                                                    Mr. MURRAY. So it just comes about communities and resources.
                                                                                 I think a lot of businesses during the pandemic came out because
                                                                                 they were struggling. Where can I get resources, resources for
                                                                                 training, you know, the Pikes Peak Workforce Center here in our

dmwilson on DSKJM0X7X2PROD with HEARINGS
                                                                                 community. I was advising my clients, there is all kinds of funding
                                                                                 coming out of the current Administration providing upskilling for

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                                                                                 just about any type of positions. But then I volunteered at my local
                                                                                 Workforce Center board, and I learned so much about workforce
                                                                                 and the things that help your community interact, and used those
                                                                                 resources to educate the businesses that I was doing business with.
                                                                                   So one of the challenges—Tracy Marquez is the CEO of our
                                                                                 Workforce Center. She is only allowed 10 percent for marketing for
                                                                                 all of the programs that she puts out there. We have got to be able
                                                                                 to release some of the restrictions on allowing us to educate the
                                                                                 community about what resources are available.
                                                                                   The same restrictions apply to the SBDCs and some of the other
                                                                                 programs. So the ability to allow us to market and get that word
                                                                                 out would be a lot more advantageous.
                                                                                   Senator HICKENLOOPER. And again, when Kevin was talking
                                                                                 about creating a language, that marketing, in a way, educates ev-
                                                                                 erybody and helps universalize that language.
                                                                                   Let me move on. Gretchen, small businesses, just the nature that
                                                                                 they are small they already face stiff competition, whatever indus-
                                                                                 try they are in, but this is especially true in those companies that
                                                                                 do Federal contracting, and they are always against larger busi-
                                                                                 nesses. Usually the deck is stacked against them. The larger busi-
                                                                                 nesses have far more resources.
                                                                                   What can the SBA do to support small businesses so they have
                                                                                 a strong cybersecurity posture and are positioned to secure con-
                                                                                 tracts with the Federal Government?
                                                                                   Ms. BLISS. Well, I think a lot of it, I was particularly impressed
                                                                                 with the way that the President’s training and education strategy
                                                                                 came out and talked about how you do not need to be alone and
                                                                                 unafraid in this process. We need to build a coalition. We need to
                                                                                 build those public-private partnerships. We need to build those con-
                                                                                 versations on education and training. And I feel like in an eco-
                                                                                 system where you have got all of those elements actively engaged
                                                                                 you can create some wraparound and support for those small busi-
                                                                                 nesses to do those things. Because I believe the way the process is,
                                                                                 too, between primes and subs, I think there is a really good con-
                                                                                 versation to have there where the primes can educate the subs and
                                                                                 have it be part of their responsibility to protect—you go back to
                                                                                 supply chain, you talked about supply chain.
                                                                                   And I also think the stuff that NIST is doing with the working
                                                                                 group is a big part of getting that conversation and having them
                                                                                 understand better the common vocabulary, the common language,
                                                                                 and to create an understand. In education it is all about under-
                                                                                 standing, and I feel like all those efforts to educate in different
                                                                                 ways, because not every student learns the same way, we create
                                                                                 ten pathways for people to get to the same information just so they
                                                                                 can get there and be able to use it in an active way to help support
                                                                                 their company, to help be an active workforce member, or to help
                                                                                 build the economy or a government entity.
                                                                                   So I feel like if we could do those things I think that is where
                                                                                 the small businesses would then be able to compete on par with
                                                                                 companies and partnered with companies to be able to win those
                                                                                 government contracts.

dmwilson on DSKJM0X7X2PROD with HEARINGS
                                                                                   Senator HICKENLOOPER. All right. And I think streamlining those
                                                                                 requirements obviously is a big part of this in every way.

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                                                                                    Alfred, NIST, SBA, all these agencies are working hard to try
                                                                                 and help small businesses secure their data, but obviously the gov-
                                                                                 ernment cannot do this on its own. We have limited resources and
                                                                                 the great American public wants to have this happen on a more
                                                                                 universal scale.
                                                                                    How can we expand public-private partnerships in such a way
                                                                                 that allows small businesses to get better cybersecurity protection?
                                                                                    Mr. ORTIZ. Well, I think there are a number of different ways,
                                                                                 and something that Mr. Stine and I were talking about earlier was
                                                                                 with respect to seeing how different states are handling it. If we
                                                                                 look at some of the privacy requirements there is one for Colorado,
                                                                                 there is one for California, Virginia, and other states. So if we were
                                                                                 to move our business or to start up a business somewhere else, how
                                                                                 would it be different with regard to some of those data require-
                                                                                 ments in different states? How do we make it so that it is some-
                                                                                 what universal, that there is some baseline, if you will, with regard
                                                                                 to some of these frameworks that we are looking for, and in various
                                                                                 areas?
                                                                                    So I think from a legislative standpoint, the European Union, for
                                                                                 example, handles those GDPR privacy requirements, whereas in
                                                                                 the United States we may enjoy our state independence from the
                                                                                 Federal Government, but from a cyber perspective it may look a lit-
                                                                                 tle bit different.
                                                                                    So looking at that, being able to get the word out. One of the
                                                                                 things that I saw was something very important was last year, I
                                                                                 believe it was March 22, where I was invited by the White House
                                                                                 to speak at Denver Community College to entrepreneurs for the
                                                                                 White House Economic Initiative. Some of those businesses that
                                                                                 they saw did not realize PCR requirements with regard to pay-
                                                                                 ments, how important that data was. So we educated them a little
                                                                                 bit on that. Their eyes did open quite big when they heard some
                                                                                 of those.
                                                                                    And just the basics to be able to go out there and say, hey, this
                                                                                 is the effort. It is affecting everybody, from the smallest player that
                                                                                 maybe has a sub with a contract, we have already seen that it af-
                                                                                 fects all of the bigger players as well, going back to Gretchen’s
                                                                                 point. And I will say it because it is a public case study, is the F–
                                                                                 35 fighter jet. All the way from the bold step, the small tier three
                                                                                 supply chain manufacturer got hacked because they did not have
                                                                                 cybersecurity, went up to tier two, and then the main supplier. And
                                                                                 now our adversaries have a copy of that in their back yard. So it
                                                                                 affects everybody.
                                                                                    Senator HICKENLOOPER. Yeah, no, absolutely, and I think that
                                                                                 vulnerability up and down the supply chain is something that peo-
                                                                                 ple are just coming to grips with.
                                                                                    I hear all the time from small businesses that just of the simple
                                                                                 protections, like dual authentication, you know, to make sure that
                                                                                 people, when they sign on, log in, that they are taking some mini-
                                                                                 mal, slightly inconvenient, but people are so used to their
                                                                                 cellphones, their handheld devices, that they do not think they
                                                                                 need that security, and obviously, you could not be further mis-
                                                                                 taken.

dmwilson on DSKJM0X7X2PROD with HEARINGS
                                                                                    Shawn, many small businesses lack resources as the largest busi-
                                                                                 nesses to invest in these protections. Do you think there are incen-

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                                                                                 tives that Congress should be considering, and what kind of incen-
                                                                                 tives should we be considering to help small businesses make these
                                                                                 early investments, within the recognition that obviously this has
                                                                                 got to be something that is sustainable. In other words, this budget
                                                                                 is going to be tighter than last year. I think next year’s budget is
                                                                                 going to be tighter than this year. We have to find ways of achiev-
                                                                                 ing this with minimal cost impact.
                                                                                    Mr. MURRAY. So great question. You know, we could go a thou-
                                                                                 sand different directions on this, but I have got an example. Here
                                                                                 is one that is near and dear, especially in this community, being
                                                                                 a big government contractor, defense industrial base community.
                                                                                 The CMMC is a great example, the Community Maturity Model
                                                                                 Certification.
                                                                                    The initial release of CMMC was so rigorous and so significant
                                                                                 that I heard complaints from small businesses that were already
                                                                                 doing business with the government, stating, ‘‘Wow, I have got to
                                                                                 invest in all of this cybersecurity and these programs, and I have
                                                                                 got to get a certification, and I have got to understand all these
                                                                                 controls, and I just build bolts that go on an aircraft that part of
                                                                                 that supply chain, and there is risk associated with that. And now
                                                                                 I have to do this to get the contract back again. So how do I justify
                                                                                 the expense of all of this money, because all of the vendors, they
                                                                                 jump onto whatever the latest and greatest technology is, they
                                                                                 scare everybody, charge boatloads of money for it, and small busi-
                                                                                 nesses cannot sustain.’’
                                                                                    I helped two congressional members with an update to the Na-
                                                                                 tional Defense Authorization Act, and we got an amendment
                                                                                 passed that required a complete review of the CMMC, which then
                                                                                 released CMMC 2.0, which addressed a lot of the small business
                                                                                 concerns. There is now a platform that takes the NIST 800–171,
                                                                                 Controlled Unclassified Information, and there are three tiers that
                                                                                 focus just on one NIST artifact as opposed to ten different sources
                                                                                 that are complex. There is a free website now where you can log
                                                                                 into and start filling out everything that you need. There are vid-
                                                                                 eos educating you why you need to be doing what you are doing.
                                                                                 And instead of five complex tiers you only have three now. And the
                                                                                 program now is looked at so well that we are not looking at it just
                                                                                 for DoD anymore. We are looking at it for the entire Federal Gov-
                                                                                 ernment, consistency.
                                                                                    So that is an example that I would suggest you take back to your
                                                                                 team and consider other legislation that makes things like the
                                                                                 SBDs, the SCOREs, or the other resources that are being funneled
                                                                                 into programs that allow consistency across the Federal acquisition
                                                                                 regulation, because the FAR is just so complex and it takes too
                                                                                 long to get approved.
                                                                                    Senator HICKENLOOPER. All right. So the idea is that you would
                                                                                 get through that initial investment and that would carry you every-
                                                                                 where.
                                                                                    Mr. MURRAY. Correct. Now you still have to do your due diligence
                                                                                 and keep that up. But the initial expense up front, with no guar-
                                                                                 antee that you are going to get something in the end, that is where
                                                                                 small businesses are concerned.

dmwilson on DSKJM0X7X2PROD with HEARINGS
                                                                                    Senator HICKENLOOPER. Yeah, and I cannot blame them. No
                                                                                 guarantee that they are going to get back that contract. There is

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                                                                                 no guarantee that the investment will hold up. And from a number
                                                                                 of people I have heard that they worry that they make those in-
                                                                                 vestments, and within 2 years there is a whole new set that they
                                                                                 have got to come back with, and they have barely gotten their man-
                                                                                 ufacturing line in place.
                                                                                    We are about out of time here. I am amazed I have not gotten
                                                                                 the boot yet. But I am going to keep talking until they tell me to
                                                                                 stop.
                                                                                    One of the things I was interested in, a couple of talked about
                                                                                 whether there should be some sort of a boot camp for cybersecurity,
                                                                                 that the Federal Government should help put together. How do you
                                                                                 all think about that? I mean, it is obviously very difficult, for all
                                                                                 the reasons you just described, to do something that was suffi-
                                                                                 ciently meaningful to make it worth the investment of a small busi-
                                                                                 ness owner’s time and resources. But there is something also ap-
                                                                                 pealing about having something like that, that once you had cre-
                                                                                 ated it, would allow people to feel confident that what they are in-
                                                                                 vesting in, it would have some sort of stamp of approval.
                                                                                    Mr. MURRAY. So I want to make sure I clarify before I respond.
                                                                                 Are we talking about a boot camp for Congress? [Laughter.]
                                                                                    Senator HICKENLOOPER. There already is. It is called elections.
                                                                                    Mr. MURRAY. Right. Constituents and how we are getting that
                                                                                 funding.
                                                                                    It is twofold. I would love to be able to share some of the stories
                                                                                 that are absolutely real, and when you tell the story it really brings
                                                                                 it home as to, wow, we have that same vulnerability, or we have
                                                                                 that same issue, and that could be me, whereas, you know, going
                                                                                 to academia and reading stuff, and this is an IP address, and this
                                                                                 is how things communicate. But going out and understanding what
                                                                                 that terrain looks like, and listening to other people’s stories and
                                                                                 how relevant it is, I think that is where it is going to bring it home.
                                                                                 I think that is more meaningful—tell a story.
                                                                                    Mr. ORTIZ. I think from that standpoint there are a number of
                                                                                 ways. I always look at maybe some of the smaller towns that have
                                                                                 small businesses but do not have access to the NCCs of the world
                                                                                 or UCCSs of the world and making it a point where even students
                                                                                 could go, instead of taking a biology class they can say, ‘‘I can take
                                                                                 a cyber class for my science class, and I can learn about this stuff
                                                                                 and get exposed to it.’’ So that is one way to be able to get it out
                                                                                 to some of the smaller areas. And being able to have a road show,
                                                                                 if you will, of these kinds of things, where small businesses can
                                                                                 come into their local SBDC or Chamber of Commerce and listen to
                                                                                 somebody talk, at least on those first things, as you mentioned,
                                                                                 Senator, multifactor authentication, VPN, and the basics of pass-
                                                                                 words and so forth.
                                                                                    Senator HICKENLOOPER. All right. Gretchen.
                                                                                    Ms. BLISS. Yeah. The boot camp concept is very effective because
                                                                                 it is time effective, it is depth and content effective, and it estab-
                                                                                 lishes that common understanding of vocabulary. And that goes
                                                                                 back to Shawn’s comments about consistency.
                                                                                    I did a research project once and looked at the 47 definitions that
                                                                                 the government uses for cybersecurity. It is confusing. So if we can

dmwilson on DSKJM0X7X2PROD with HEARINGS
                                                                                 use something like that to create that common understanding and
                                                                                 baseline I think it will help everyone to be successful and be able

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                                                                                 to have that conversation. Because once you establish that baseline
                                                                                 then you can respond in kind, into whatever industry, and things
                                                                                 can be industry-unique.
                                                                                    We have constantly talked about having a level of certification,
                                                                                 like a bar for a lawyer, right. Do we have something like that in
                                                                                 cybersecurity? Are we getting there? What does that look like? You
                                                                                 know, IEEE has the stuff that they do with their standards, and
                                                                                 they have put cybersecurity in it as well.
                                                                                    So I feel like there are efforts out there, but they are not nec-
                                                                                 essarily consolidated and consistent so that they can be accessible
                                                                                 by everyone.
                                                                                    Senator HICKENLOOPER. That is a little bit like the Field of
                                                                                 Dreams as well—if you build it, will they really come? I always
                                                                                 worry that as effective as the Small Business Administration has
                                                                                 been and the SBDCs, there are so many small businesses that are
                                                                                 working so hard that they are not in the Chamber of Commerce.
                                                                                 My small business, I never joined the Chamber of Commerce. I was
                                                                                 in business for 15 years before I decided I was going to run for
                                                                                 mayor of Denver.
                                                                                    But if you are really immersed in your small business, sometimes
                                                                                 you are not in a place where you can see that, and I think a boot
                                                                                 camp is the kind of thing that might actually bring people to the
                                                                                 table that are not members anywhere, and I think that is a real
                                                                                 issue.
                                                                                    Anyway, closing thoughts, any of you? I think we have probably
                                                                                 taken a lot of your time, too much of your time.
                                                                                    Ms. BLISS. Not at all, sir. I just want to say thank you for your
                                                                                 interest in this topic. As you know, cybersecurity is very broad, it
                                                                                 is very deep, and sometimes we are all in a room talking about it
                                                                                 and it is like touching the elephant. So I feel like efforts like this,
                                                                                 and hearings like this help to broaden that context of conversation
                                                                                 and understanding, and I appreciate you bringing it to Colorado
                                                                                 Springs, because I feel like we have a very unique ecosystem here
                                                                                 that we have been developing to have exactly the conversations
                                                                                 that you are talking about. And we have kind of piloted some
                                                                                 things, and we are going to keep doing that until we feel like we
                                                                                 are getting it right.
                                                                                    So I really appreciate that, and just understand that the partner-
                                                                                 ship here is going to continue to expand and build on the baseline
                                                                                 that you have basically gotten in place with this effort over the last
                                                                                 10 years. So I really appreciate that.
                                                                                    Mr. ORTIZ. Senator, thank you for having us. I echo Gretchen’s
                                                                                 sentiments wholeheartedly. I think what we have got to do is col-
                                                                                 laborate with what Shawn was saying, come together, be able to
                                                                                 put this first and foremost, as Americans, an all-partisan issue, as
                                                                                 I had mentioned before, and put it out there so that we can all
                                                                                 learn a little bit about cyber, so we can just keep our data safe, ei-
                                                                                 ther as a business or personally, so we can be out there. And I
                                                                                 think there are a number of folks that understand that, and we can
                                                                                 all be neophytes to the message around cyber.
                                                                                    Mr. MURRAY. Thank you again, Senator and the Committee, for
                                                                                 allowing us to come up and provide some testimony to be consid-

dmwilson on DSKJM0X7X2PROD with HEARINGS
                                                                                 ered as you move back and make decisions. Remember that cyber-
                                                                                 security is about protecting information. It is a national security

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                                                                                                                                 48

                                                                                 issue, it is an economic issue, and both of them are tied together.
                                                                                 We need to be able to protect the viability of our small businesses.
                                                                                    I cannot say any more. This has been a great venue. I appreciate
                                                                                 you hosting us and allowing us to testify in front of you today.
                                                                                    Senator HICKENLOOPER. Thank you all, and I think a lot of the
                                                                                 foundations that you led and that we heard from NIST and Kevin
                                                                                 describing the importance of education and collaboration and cre-
                                                                                 ating this new language and getting the word out there. It does
                                                                                 need to be just—several of you, or almost all of you, I think, at one
                                                                                 time or another mentioned it, the analogy between accountants and
                                                                                 your doctor or your attorney.
                                                                                    You know, I am from the school that actually believes you should
                                                                                 not have to have your attorney on speed dial. I would like to get
                                                                                 back to the time when you do not have so many rules and regula-
                                                                                 tions. But I think within cybersecurity I think that is something
                                                                                 that we are going to need. I probably just offended 200 lawyers.
                                                                                 But the ability of our culture, our country, to really address this
                                                                                 and make sure that everybody understands it somewhat in the way
                                                                                 that everyone drives—if you go out on the roads, most people know
                                                                                 ‘‘somewhat’’ how to drive a car. Sometimes we wonder.
                                                                                    But that awareness and that understanding of the basic prin-
                                                                                 ciples has to expand. It has to get out there a lot faster. And you
                                                                                 all being here and the work that you are doing every day is helping
                                                                                 lead this country in that effort.
                                                                                    As a Senator I get to say on behalf of our country thank you for
                                                                                 your help today and all your public service.
                                                                                    Now to conclude our hearing for today I would like to again, one
                                                                                 last time, thank each of our witnesses for their testimony. I do hate
                                                                                 calling you ‘‘witnesses’’ because it does imply a crime, which in this
                                                                                 particular case I am not aware. There are many crimes around cy-
                                                                                 bersecurity. I am not sure which one we are addressing.
                                                                                    We will keep the hearing record open for questions for 2 weeks,
                                                                                 until August 28, 2023. We ask that witnesses submit their re-
                                                                                 sponses to those questions. As they come in we will get them to you
                                                                                 and get us your responses by September 11, 2023.
                                                                                    With that this hearing is adjourned.
                                                                                    [Whereupon, at 4:02 p.m., the hearing was adjourned.]

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