Ignore the SEC’s Strengthened Stance on Cybersecurity At Your Own Peril
March 25, 2019 / Chris Hetner
With constantly changing technology, integrated core business processes, and connected devices now pervasive, the threat and impact of cyberattacks are higher than ever. Attackers—whether individuals or nation-states—are becoming more astute, putting pressure on companies to take immediate action to protect their assets from potentially imminent breaches. According to the recently released Global Risks Report 2019, business leaders in advanced economies rank cyberattacks among their top concerns. A large-magnitude attack can destroy a company’s fiscal well-being and have a ripple effect on the economy. The SEC Strengthens Its Stance. Cybersecurity has, for several years, been high on the agenda of the U.S. Securities and Exchange Commission (SEC), and in 2011, the Commission’s Division of Corporate Finance issued guidance, calling on companies to assess their disclosure obligations with regard to their cybersecurity risks and cyber incidents.