Publicly traded companies must start disclosing more “actionable” information to shareholders and regulators around their cyber risks and vulnerabilities.
Authors of a new report argue that in the wake of the 2020 SolarWinds breach and increased regulatory fervor on Capitol Hill and the Securities and Exchange Commission, public companies “should be explaining to investors the specific risks they face from cybersecurity threats, including operational disruption, intellectual property theft, loss of sensitive client data, and fraud caused by business email compromises.”
In the legal realm, law firms who work on software supply chain breach cases are increasingly scrutinizing what a business knew or should have known about their software and hardware suppliers, as well as exposure to known risky vendors, when discussing issues like liability. At the SEC, internal guidance to staff around disclosure obligations for publicly traded companies calls for investors to get the same perspective around technology risks and their impact on business operations as management. The details should be “specifically tailored to a company’s unique facts and circumstances” and avoid vague or general language about experiencing “a cybersecurity incident” when they do suffer a breach.
Please register to continue.
Already registered? Log in.
Once you register, you'll receive:
The context and insight you need to stay abreast of the most important developments in cybersecurity. CISO and practitioner perspectives; strategy and tactics; solutions and innovation; policy and regulation.
Unlimited access to nearly 20 years of SC Media industry analysis and news-you-can-use.
SC Media’s essential morning briefing for cybersecurity professionals.
One-click access to our extensive program of virtual events, with convenient calendar reminders and ability to earn CISSP credits.