SEC Adopts Rules on Cyber Security Risk Management, Strategy, Governance, and Incident Disclosure by Public Companies
July 26, 2023
The SEC has voted today to adopt new rules requiring public companies to disclose material cyber security incidents and, to disclose on an annual basis, material information regarding their cyber security risk management, strategy, and governance.
The new rules are intended to improve the transparency of cyber security information for investors and to help them make more informed investment decisions. The rules are also intended to encourage companies to take cyber security more seriously and to invest in effective cyber security measures.
Key Benefits of the SEC’s New Cyber Security Risk Rules
Here are some of the key benefits of the new rules:
- Increased transparency for investors: the new rules will require companies to disclose more information about their cyber security risks and incidents, which will help investors to make more informed investment decisions.
- Increased accountability for companies: the new rules will put pressure on companies to take cyber security more seriously and to invest in effective cyber security measures.
- Enhanced market stability: the new rules will help to protect the financial markets from the negative effects of cyber security incidents.
Overall, the new SEC cyber security disclosure rules are a positive step forward for investors, companies, and the financial markets. The rules will help to improve transparency, accountability, and market stability in the face of growing cyber security threats.
The SEC’s press release can be found here.
To learn more about this update, please reach out to our Cyber & Data Protection team today.