(Communicated by the Prime Minister's Media Adviser)
 
The Cabinet, at its weekly meeting today (Sunday, 15 February 2015), approved a comprehensive plan for national readiness in cyberspace; this is in addition to processes and efforts being advanced by the Israel National Cyber Bureau since its establishment three years ago in order to boost the State of Israel's strength in cyberspace.
 
The Cabinet approved the establishment of a national cyber defense authority which will have overall national responsibility for cyber defense and which will be gradually established over a three-year period. The authority will oversee cyber defense actions so as to provide a comprehensive response against cyber-attacks including dealing with threats and events in real time. The authority will also operate an assistance center - a Cyber Event Readiness Team - for dealing with cyber threats in order to strengthen the resilience of organizations and sectors in the economy.
 
The decision follows up on comprehensive and thorough staff work that indicated the need for an operative designated body to lead cyber defense activity in the State of Israel while taking a long term view of the increasing and developing threats.
 
The authority will act alongside the Israel National Cyber Bureau, which will continue setting national policy, in building a pioneering technological force for the State of Israel as a global leader in the cyber field. The authority and the bureau will constitute a single national cyber directorate in the Prime Minister's Office, led by INCB head Dr. Eviatar Matania.
 
The Cabinet also approved a decision on organizing the cyber defense services sector including relevant professionals, products and services by means of a designated unit that will be established within the framework of the new authority. The Cabinet also approved the organizing of the deployment of organizations in the economy in the field of cyber defense to be based as much as possible on existing regulatory agencies. Thus, a plan will be formulated on assistance and incentives for organizations in the economy to raise their level of readiness to meet cyber threats.
 
Today's decision will also require the government to institute high cyber defense standards both in order to improve protection for the digital assets of the state of Israel and to serve as an example for the public and the economy. At its center will be the unit for government cyber defense that will be established in the Prime Minister's Office to offer professional guidance and directives for the government as a whole. The unit will also establish a government security operations center to operate in the face of cyber threats.
 
Prime Minister Benjamin Netanyahu said: "Today we will also submit to the Cabinet a decision to boost Israel's strength in the cyber field. Cyber threats can paralyze nations. This is a strategic threat that can paralyze and hurt no less than other threats in various fields and we must be prepared to for it on the national and international levels. In addition to setting up a cyber bureau, which we did several years ago, today I am submitting to the Cabinet a proposal to establish a national authority to oversee national cyber defense in the civilian sector.
 
The cyber field is a dynamic one. We need professional agencies in this field, that are committed to this field that deal only with this field, and which constitute links to the other agencies that deal with this field, some partially and some fully. Israel is a cyber power. Our goal is to further develop our capabilities in this field which is essential to the security and future of Israel."
 
INCB head Dr. Matania said: "This is an historic decision that will form how the State of Israel deals with cyber threats in the coming decades. These moves will bolster the strength of the economy and will encourage its growth. Many developed countries view Israel as a model to be emulated vis-à-vis its innovative and pro-active approach to the opportunities and threats of the cyber age. The decision will establish Israel's important position as a global leader in the field.
 
The State of Israel's status as a global leader in the cyber field is strengthening to a large degree thanks to pioneering industry and various extraordinary activities. A prosperous cyber industry constitutes a key layer of the Israeli economy and, at the same time, makes a unique contribution toward building the national defense and assists countries around the world in dealing with threats in cyberspace."
 
INCB head Dr. Matania also informed ministers that the Israeli cyber industry made record achievements in 2014. Approximately 30 cyber firms raised over &200 million - approximately 40% more than in 2013. Eight Israeli cyber companies were purchased for an overall sum of approximately $700 million.
 
At the same time, several Israeli cyber firms have continued to mature and develop ahead of initial public offerings.
 
Several assessments may be made regarding the economic magnitude of cyber attacks. Former US National Security Agency Director and US Cyber Command head Gen. Keith B. Alexander (ret.) has estimated the cost of intellectual property theft in the US to be $250 billion per annum. Additionally, in June 2014 the Center for Strategic and International Studies and cyber security firm McAfee estimated the global cost of cybercrime to be approximately $400 billion per annum.