The cyber landscape and cyber threat environment are ever-evolving, and with that comes new opportunities, but also new challenges. Given the non-stop nature of cyber-attacks and data breaches, it’s no surprise that regulatory bodies are attempting to “help” (government efforts to improve cybersecurity are a separate post unto itself.) 🛡
The first step in this “help” is The Securities and Exchange Commission (SEC) recently rolled out rules regarding cybersecurity. These affect a broad swath of companies. If you’re unsure about what this means for you and your organization, you’re not alone! Hopefully, this will give you a quick primer on the new rule that went into effect in July. 🌐
Who is Affected?
➡ Public companies
➡ Certain private companies with high-revenue or large customer bases
➡ Financial institutions
1️⃣ Risk Assessment: Companies are now required to conduct comprehensive cybersecurity risk assessments.
2️⃣ Disclosure: Transparency is key. Companies must disclose any significant cybersecurity risks and incidents that can impact shareholders.
3️⃣ Audit Trails: Record-keeping is now more essential than ever. An audit trail for data and security measures is a must.
Why it Matters?
The rules are designed to protect not just the companies but also consumers, investors, and the economy at large. Failure to comply doesn’t only result in hefty fines but can severely erode trust — something no company can afford to lose. ⚖️
The Bright Side ✨
While compliance may seem daunting, this is an opportunity for companies to review and upgrade their cybersecurity strategies. A stronger cybersecurity posture is a competitive advantage, one that assures your customers and stakeholders that their data is in safe hands.
🎯If you are impacted by this rule, here are some initial steps you need to take:
➡ Conducting a thorough cybersecurity risk assessment.
➡ Training your team on new compliance requirements.
➡ Consulting legal and technical experts to fill any gaps in your cybersecurity strategy.
➡ Read the whole rule….SEC Press Release
You can look at this as a burden or blessing (I am guessing more the former rather than the latter, but I digress) but regardless if you are an impacted entity, you need to get ahead of the requirements, rather than behind. 🌱
Even if you are currently an unaffected entity, it is likely just a matter of time before similar rules come your way. It is probably a good idea to try and get ahead of it…
Stay Safe, Stay Informed!
(Image Source: PWC)