and penetration tests commensurate with the risk 
posed to agency information systems; 
‘‘(3) policies and procedures that— 
‘‘(A) cost effectively reduce information se-
curity risks to an acceptable level; 
‘‘(B) ensure compliance with— 
‘‘(i) the requirements of this sub-
chapter; 
‘‘(ii) policies and procedures as may 
be prescribed by the Director, and infor-
mation security standards promulgated 
pursuant to section 11331 of title 40; 
‘‘(iii) minimally acceptable system 
configuration requirements, as determined 
by the Director; and 
‘‘(iv) any other applicable require-
ments, including— 
‘‘(I) standards and guidelines for 
national security systems issued in ac-
cordance with law and as directed by 
the President; and 
‘‘(II) the National Institute of 
Standards and Technology standards 
and guidance;
‘‘(C) develop, maintain, and oversee infor-
mation security policies, procedures, and control 
techniques to address all applicable require-
ments, including those promulgated pursuant 
section 11331 of title 40; and 
‘‘(D) ensure the oversight and training of 
personnel with significant responsibilities for in-
formation security with respect to such respon-
sibilities; 
‘‘(4) with a frequency sufficient to support risk- 
based security decisions, automated and continuous 
monitoring, when possible, for testing and evaluation 
of the effectiveness and compliance of information 
security policies, procedures, and practices, includ-
ing— 
‘‘(A) controls of every information system 
identified in the inventory required under sec-
tion 3505(c); and 
‘‘(B) controls relied on for an evaluation 
under this section; 
‘‘(5) a process for planning, implementing, eval-
uating, and documenting remedial action to address 
any deficiencies in the information security policies, 
procedures, and practices of the agency;
‘‘(6) with a frequency sufficient to support risk- 
based security decisions, automated and continuous 
monitoring, when possible, for detecting, reporting, 
and responding to security incidents, consistent with 
standards and guidelines issued by the National In-
stitute of Standards and Technology, including— 
‘‘(A) mitigating risks associated with such 
incidents before substantial damage is done; 
‘‘(B) notifying and consulting with the 
Federal information security incident center 
and other appropriate security operations re-
sponse centers; and 
‘‘(C) notifying and consulting with, as ap-
propriate— 
‘‘(i) law enforcement agencies and rel-
evant Offices of Inspectors General; and 
‘‘(ii) any other agency, office, or enti-
ty, in accordance with law or as directed 
by the President; and 
‘‘(7) plans and procedures to ensure continuity 
of operations for information systems that support 
the operations and assets of the agency. 
‘‘(c) AGENCY REPORTING.—Each agency shall— 
‘‘(1) submit an annual report on the adequacy 
and effectiveness of information security policies,
procedures, and practices, and compliance with the 
requirements of this subchapter, including compli-
ance with each requirement of subsection (b) to— 
‘‘(A) the Director; 
‘‘(B) the Committee on Homeland Security 
and Governmental Affairs of the Senate; 
‘‘(C) the Committee on Oversight and Gov-
ernment Reform of the House of Representa-
tives; 
‘‘(D) other appropriate authorization and 
appropriations committees of Congress; and 
‘‘(E) the Comptroller General; 
‘‘(2) address the adequacy and effectiveness of 
information security policies, procedures, and prac-
tices in plans and reports relating to— 
‘‘(A) annual agency budgets; 
‘‘(B) information resources management of 
this subchapter; 
‘‘(C) information technology management 
under this chapter; 
‘‘(D) program performance under sections 
1105 and 1115 through 1119 of title 31, and 
sections 2801 and 2805 of title 39; 
‘‘(E) financial management under chapter 
9 of title 31, and the Chief Financial Officers
Act of 1990 (31 U.S.C. 501 note; Public Law 
101–576); 
‘‘(F) financial management systems under 
the Federal Financial Management Improve-
ment Act of 1996 (31 U.S.C. 3512 note); and 
‘‘(G) internal accounting and administra-
tive controls under section 3512 of title 31; and 
‘‘(3) report any significant deficiency in a pol-
icy, procedure, or practice identified under para-
graph (1) or (2)— 
‘‘(A) as a material weakness in reporting 
under section 3512 of title 31; and 
‘‘(B) if relating to financial management 
systems, as an instance of a lack of substantial 
compliance under the Federal Financial Man-
agement Improvement Act of 1996 (31 U.S.C. 
3512 note). 
‘‘§ 3555. Federal information security incident center 
‘‘(a) IN GENERAL.—The Director shall ensure the 
operation of a central Federal information security inci-
dent center to— 
‘‘(1) provide timely technical assistance to oper-
ators of agency information systems regarding secu-
rity incidents, including guidance on detecting and 
handling information security incidents;
‘‘(2) compile and analyze information about in-
cidents that threaten information security; 
‘‘(3) inform operators of agency information 
systems about current and potential information se-
curity threats, and vulnerabilities; and 
‘‘(4) consult with the National Institute of 
Standards and Technology, agencies or offices oper-
ating or exercising control of national security sys-
tems (including the National Security Agency), and 
such other agencies or offices in accordance with law 
and as directed by the President regarding informa-
tion security incidents and related matters. 
‘‘(b) NATIONAL SECURITY SYSTEMS.—Each agency 
operating or exercising control of a national security sys-
tem shall share information about information security in-
cidents, threats, and vulnerabilities with the Federal infor-
mation security incident center to the extent consistent 
with standards and guidelines for national security sys-
tems, issued in accordance with law and as directed by 
the President. 
‘‘(c) REVIEW AND APPROVAL.—The Director shall 
review and approve the policies, procedures, and guidance 
established in this subchapter to ensure that the incident 
center has the capability to effectively and efficiently de-
tect, correlate, respond to, contain, mitigate, and reme-