In a fiscal year 2016 Annual Report to Congress on the Federal Information Security Modernization Act, the Office of Management and Budget ("OMB") examined: (i) the progress of regulatory agencies in developing cybersecurity policies, including the results of independent Inspector General assessments that identify areas in need of improvement, and (ii) "Federal cybersecurity incidents, [including] ongoing efforts to mitigate and prevent future incidents, and agencies' progress in implementing cybersecurity policies and programs to protect their systems, networks and data."

The Report found that the median response to cybersecurity threats by federal agencies could only be characterized as being in its initial stage, since the cybersecurity policies and procedures that are in place at all federal agencies are "not consistently implemented." The Report also found that the single most common cybersecurity threat to federal agencies is not a cyberattack by an external hacker, but the loss or theft of government computers and physical storage media.

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