4. Protect, by encryption or other means, nonpublic information being transmitted over an external network and nonpublic information stored on a portable computer or storage device or media.

5. Adopt secure development practices for applications that are developed in-house and utilized by the licensee.

6. Modify information systems in accordance with the licensee's information security program.

7. Utilize effective controls, which may include multifactor authentication procedures for employees accessing nonpublic information.

8. Implement regular testing and monitoring of systems and procedures to detect actual and attempted attacks on, or intrusions into, an information system.

9. Include audit trails within the information security program that are designed to detect and respond to cybersecurity events and to reconstruct material financial transactions sufficient to support the normal operations and obligations of the licensee.

10. Implement measures to protect against the destruction, loss, or damage of nonpublic information due to environmental hazards, natural and other disasters, and technological failures.

11. Develop, implement, and maintain practices for the secure disposal of nonpublic information in all formats.

(d) Stay informed regarding emerging threats and vulnerabilities and implement safeguards to manage the threats and vulnerabilities.

(e) No less than annually, assess the effectiveness of security safeguards, including key controls, systems, and procedures.

(f) Include cybersecurity risks in the licensee's enterprise risk management process.

(g) Utilize reasonable security measures when sharing information, taking into consideration the character of the sharing and the type of information shared.

(h) Provide personnel with cybersecurity awareness training that is updated as necessary.

(4) Program adjustments. The licensee shall monitor, evaluate, and adjust the information security program under sub. (1) consistent with changes in technology, the sensitivity of the nonpublic information, internal and external threats to nonpublic information, and changes to the licensee's business operations, outsourcing arrangements, and information systems. If a licensee identifies areas, systems, or processes that require material improvement, updating, or redesign, the licensee shall document the identification and remedial efforts to address the areas, systems, or processes. The licensee shall maintain the documentation for a period of at least 5 years starting from the date the documentation was created and shall produce the documentation upon demand of the commissioner.

(5) Incident response plan. As part of its information security program, a licensee shall develop an incident response plan to promptly respond to, and recover from, a cybersecurity event that compromises the confidentiality, integrity, or availability of nonpublic information, the licensee's information systems, or the continuing functionality of any aspect of the licensee's business or operations. The incident response plan shall be in writing and address all of the following:

(a) The goals of the incident response plan.

(b) The internal process for responding to a cybersecurity event.

(c) The identification of clear roles, responsibilities, and levels of decision-making authority during and immediately following a cybersecurity event.

(d) The external and internal communications and information sharing during and immediately following a cybersecurity event.

(e) Requirements for the remediation of identified weaknesses in the information systems and associated controls.

(f) The reporting and documentation of a cybersecurity event and related incident response activities.

(g) The evaluation and revision of the incident response plan following a cybersecurity event.

(6) Oversight of 3rd-party service provider arrangements. If applicable, no later than 2 years after the effective date of this subsection .... [LRB inserts date], a licensee shall exercise due diligence when selecting any 3rd-party service provider. The licensee shall make reasonable efforts to require a 3rd-party service provider to do all of the following:

(a) Implement appropriate administrative, technical, and physical measures to protect and secure the information systems and nonpublic information that are accessible to or held by the 3rd-party service provider.

(b) Report a cybersecurity event under s. 601.954.

(7) Oversight by board of directors. If a licensee has a board of directors, the board or an appropriate committee of the board shall, at a minimum, do all of the following: