The immediate effect of the legislation is a rush by corporations to upgrade outdated security systems and conduct rigorous penetration testing. The 72-hour reporting window is particularly challenging, requiring companies to have clear, pre-defined communication channels and forensic investigation capabilities ready to deploy instantly.

Many firms are now hiring specialized cyber-attorneys and crisis communication consultants to navigate the legal and reputational risks associated with public breach disclosures.

A key element of the law is the requirement for the CEO and board to formally attest to the adequacy of their cybersecurity programs, raising the stakes for corporate governance. Failure to report in time, or providing incomplete information, can result in fines amounting to millions of dollars, dwarfing the cost of the security measures themselves. The regulation is designed to be technology-neutral, focusing on the outcome—protecting national economic security—rather than prescribing specific software solutions. This flexibility allows companies to innovate their defense strategies but places the entire burden of demonstrable readiness squarely on the corporate leadership, fundamentally changing the landscape of operational risk management.