Stay On Top Of The Latest From The SEC 2023
Overview
In keeping up with the evolving regulatory landscape from the SEC, we’re here to discuss the latest set of rules regarding Cybersecurity Risk Management, Strategy, Governance, and Incident Disclosure by Public Companies. We’ll cover what changes are coming down the pike, how your organization will be impacted, and how to best prepare. As the industry-leader in Enterprise Risk Management since 2005, LogicManager’s solutions will keep you ahead of the game and ready for tomorrow’s surprises today.
What’s Changing
The latest rule change from the SEC is requiring registrants to “disclose material cybersecurity incidents they experience and to disclose on an annual basis material information regarding their cybersecurity risk management, strategy, and governance”. This mandate from the SEC to better inform both the public and investors with consistent and uniform disclosures is another step in the direction of a See-Through Economy. The See-Through Economy was coined by LogicManager CEO Steven Minsky when describing the shift in technology that has allowed information, news, and opinions to be more freely shared and distributed among the general public. By formalizing the disclosure of material cybersecurity incidents within annual fiscal reports, the SEC is embracing this trend.
How Will This Impact Your Organization?
With a better understanding of what’s changing, we can start to realize how organizations will feel the impact of the changes. CISOs will be mandated to disclose in their annual reports their processes for assessing, identifying, and managing material risk from cybersecurity threats. In addition, there will be requirements for management’s role in assessing and managing material threats.
As a result, Managers and CISOs will have a larger responsibility to communicate to the board their process for overseeing cyber risk. In turn, boards will then be more involved to help implement cyber policies and report on risk.
How LogicManager Can Help
No matter the stage of maturity your cyber risk program may be at, all organizations will need to ensure they are protected for the changes to come. We’ve outlined a few key areas that our enterprise risk management software can help your organization stay ahead of the curve.
- Effective Risk Management - comprehensive risk management strategies are essential for identifying and mitigating potential risks that could lead to cyber incidents. Regular risk assessments, internal controls, and monitoring mechanisms play a pivotal role in preventing fraudulent activities and misconduct. By using standardized cybersecurity risk assessments, companies will have a better understanding of the risks that each IT asset, policy, procedure or control holds and what their impact could be on the organization’s security posture.
- Incident Management - through our workflow functionality, ensure the correct stakeholders are being involved with cyber incidents – and that they have a response plan in place. This will allow for quicker response times and clearer processes to follow, especially with incident materiality determinations.
- Identify Critical Gaps - Identify critical areas that might be outside of an acceptable tolerance level for the business. Track gaps in the program and work to resolve them before a risk manifests.
- Avoid Reputational Damage, Legal Consequences, and Stakeholder Distrust - clearly defined roles, ethical guidelines, and strong governance practices foster a sense of responsibility among employees and leaders.
Want to learn more about how we can help your organization prepare for the latest changes from the SEC? Request a demo with one of our customer advocates to get started.