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Watch the July MAD Security Town Hall Webinar replay 👇

 

One year after the U.S. Coast Guard Cybersecurity Rule officially took effect, the maritime industry has shifted from interpreting the rule to understanding how the Coast Guard is implementing it in practice.

Questions that dominated conversations in 2025 have begun answering themselves. What do inspections actually look like? How is the Coast Guard approaching enforcement? What does "reasonable cybersecurity" really mean?

During July's MAD Security Cybersecurity Town Hall, Cliff Neve, Vice President of Maritime at MAD Security and former member of the team that helped establish U.S. Coast Guard Cyber Command, shared lessons learned from the first year of implementation while working with ports, terminals, and vessel operators across the maritime industry.

Rather than walking through the regulation line by line, Cliff focused on what the Coast Guard has done over the past twelve months and what those actions reveal the agency's priorities moving forward.

"The conversation has changed dramatically. We're no longer just reading the regulation. We're watching how the Coast Guard has actually rolled it out."

– Cliff Neve, ice President of Maritime, MAD Security

 

The biggest takeaway was encouraging.

The Coast Guard has spent far more time helping organizations improve than looking for reasons to penalize them. Organizations that understand their risks, demonstrate progress, and continuously improve their cybersecurity programs are positioning themselves for long-term success.

 

Key Takeaways from July Town Hall

One year after the Coast Guard Cyber Rule became effective, the maritime industry has a much clearer understanding of what successful implementation looks like.

Throughout the Town Hall, Cliff highlighted several recurring themes based on the Coast Guard's actions over the past twelve months. Rather than emphasizing enforcement, the Coast Guard has consistently focused on helping organizations build stronger cybersecurity programs, improve operational resilience, and demonstrate continuous progress.

The following takeaways reflect the priorities organizations should focus on as implementation continues.

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The Coast Guard Is Focused on Building Maturity, Not Catching Organizations Off Guard

Since the rule became effective, nearly every major Coast Guard initiative has centered on helping industry improve cybersecurity rather than increasing enforcement.

Over the past year, the Coast Guard has consistently demonstrated that its priority is helping industry build mature cybersecurity programs rather than pursuing punitive enforcement. They have released cybersecurity assessment guidance, expanded inspector education, conducted Cyber Protection Team assessments, published waiver guidance, and continued developing resources through the Maritime Industry Cybersecurity Resource Center.

These efforts all point to one clear objective: improving cybersecurity maturity across the Marine Transportation System.

Organizations that actively engage in the process, complete assessments, and demonstrate continuous improvement will be much better prepared than those waiting until compliance deadlines arrive.

Callout: The Coast Guard wants to see organizations that understand their risks, can explain their cybersecurity strategy, and demonstrate measurable progress over time.

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Cybersecurity Is an Operational Challenge

The Coast Guard's concern extends beyond technology.

Its primary focus is ensuring maritime operations continue safely during a cyber incident. Rather than evaluating individual cybersecurity products, inspectors want to understand how organizations manage operational risk and prepare disruptions that could affect safety and continuity.

Organizations should be prepared to answer operational questions such as:

  Can vessels continue operating safely?
  Can cargo still be loaded?
  Can fuel transfers continue?
  Configuration changes
  Can critical systems recover quickly after an incident?

 

Operational resilience has become the true measure of cybersecurity maturity.

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Crawl. Walk. Run.

Although the regulation never formally uses these terms, the Coast Guard consistently describes implementation as a maturity journey: crawl, walk, and run.

Crawl

Organizations should:

   Understand their environment
   Identify critical systems
   Establish governance
   Begin cybersecurity assessments
  Conduct tabletop exercises focused on learning

Walk

Organizations should:

   Finalizing cybersecurity plans
   Prioritizing risks

  Implementing foundational controls
   Deploying network segmentation
  Validating technical safeguards

Run

Mature organizations focus on:

  Operational drills
  Performance measurement
  Continuous improvement
  Organizational resilience
   Routine execution of cybersecurity procedures

Each phase builds on the previous one. Attempting to skip foundational work often creates larger challenges later.

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Cybersecurity Assessments Reveal What Organizations Don't Know

Many organizations initially think of cybersecurity assessments as another compliance requirement.

In reality, assessments frequently uncover risks organizations didn't realize existed, including:

  Legacy systems
  Forgotten vendor connections
   Shadow IT
  Single points of failure
  Undocumented operational technology

These discoveries allow organizations to prioritize improvements before they become operational disruptions.

Cybersecurity assessments also establish the foundation for cybersecurity plans, documentation, risk registers, and, when appropriate, waiver requests.

Callout: Every cybersecurity assessment should improve your understanding of the environment, not simply generate documentation.

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Exercises Build Confidence Before Incidents Occur

The Coast Guard places significant emphasis on exercises and operational readiness because organizations should validate their plans before an incident occurs.

Current requirements include:

  One tabletop exercise each year
  Two cybersecurity drills annually

Organizations should avoid repeating the same exercise every time.

Instead, drills should test a variety of operational scenarios, including:

  Ransomware response
  Third-party vendor disruptions
  Operational technology failures
  Phishing campaigns
  Physical and cyber coordination

Participating in Area Maritime Security Committee exercises also help organizations understand how regional partners respond during larger maritime incidents.

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Continuous Improvement Is the Real Goal

One year into implementation, organizations should already be demonstrating measurable progress.

Examples of meaningful progress include:

  Designated cybersecurity leadership
  Completed asset inventories and categorization
  Cybersecurity assessments
  Risk registers
  Employee training
  Monitoring and detection capabilities
  Updated cybersecurity plans

Inspectors are increasingly interested in whether an organization's cybersecurity program functions as intended.

Being able to explain risks, priorities, and ongoing improvements is often more valuable than presenting a perfect checklist.

Q&A Highlights

Where should organizations begin their cybersecurity assessment?

Start by understanding your environment. Identify every system, determine which assets support transportation security, and consider bringing in experienced cybersecurity professionals early if additionalexpertise is needed.

What should organizations expect over the next year?

The Coast Guard will likely spend considerable time reviewing cybersecurity plans and evaluating whether organizations are making meaningful progress. Demonstrating continuous improvement will remain more important than claiming perfection.

Can organizations request waivers?

Yes, but only after completing a comprehensive cybersecurity assessment. Organizations must first understand and document their operational environment before requesting a waiver.

 

MAD Security's Role in Maritime Cybersecurity

MAD Security helps maritime organizations build cybersecurity programs that support operational resilience while meeting regulatory expectations.

Our services include:

Maritime Cybersecurity Assessments
Virtual CySO Services
Cybersecurity Plan Development
Vulnerability Management
Managed Detection and Response (MDR)
24/7 U.S.-Based Security Operations Center
Incident Response
Governance, Risk, and Compliance Support

Our goal is not simply to help organizations comply with today's requirements.

We help clients build cybersecurity programs that continue improving long after implementation.

 

Why Operational Resilience Matters

The Coast Guard Cyber Rule was never intended to eliminate cyber risk.

Its purpose is to ensure organizations understand their risks, manage them appropriately, and continue operating safely when incidents occur.

As Cliff reminded attendees, resilience is ultimately measured by outcomes.

"Resilience isn't measured by preventing every incident. It's measured by how safely and effectively you continue operating when one occurs."

 â€“ Cliff Neve, Vice President of Maritime, MAD Security


Organizations that integrate cybersecurity into daily operations will be better prepared for inspections, stronger during incidents, and more resilient over time.

 

Free Resources and Next Steps 

MAD Security offers several resources to help maritime organizations strengthen cybersecurity and prepare for regulatory requirements:

Maritime Cybersecurity Assessments
Virtual CySO Services
Incident Response Planning
Managed Detection and Response
MAD Security Maritime Town Hall Webinar

Whether your organization is beginning its cybersecurity journey or refining an existing program, now is the time to build a strong operational foundation.

 

Final Thoughts 

One year after the Coast Guard Cyber Rule became effective, the maritime industry has a much clearer understanding of what success looks like.

The Coast Guard is looking for organizations that understand operational risk, demonstrate continuous improvement, and make cybersecurity part of everyday operations.

Cliff closed the Town Hall with a message that perfectly captures where the industry is headed.

"The organizations that will succeed over the next five years won't necessarily be the ones with the biggest cybersecurity budgets. They'll be the organizations that build cybersecurity into the way they operate every day."

– Cliff Neve, Vice President of Maritime, MAD Security


That mindset, more than any individual technology or compliance checklist, will define the next generation of resilient maritime organizations.