The latest U.S. Securities and Exchange Commission (SEC) cybersecurity rules address concerns over access to cybersecurity information, emphasizing businesses' need to review and update their information security practices, strategies, and processes. Understanding the 2023 SEC cybersecurity rules and their impact on businesses is essential, as public companies that don’t meet the new cybersecurity requirements will face possible regulatory action or litigation.
This article will discuss important information regarding the latest rules and their impact on many businesses. Discover our helpful Cybersecurity Compliance Checklist based on the new SEC regulations and learn about crucial cybersecurity trends related to artificial intelligence, machine learning integration, and the surge of ransomware threats.
Understanding the Impact on Businesses
The SEC cyber rules emphasize a call to action for businesses to prioritize security in their operations, primarily focusing on risk management and strategy regulations, governance, material cybersecurity incidents, and foreign private issuers.
Public companies must comply with SEC cybersecurity rules and adapt to evolving threats and regulations. The new SEC’s cybersecurity rules ensure companies are better equipped to handle potential cybersecurity threats and data breaches. These rules enforce quick incident reporting and governance disclosure requirements. To prevent cyberattacks, companies must now focus on developing and implementing effective cyber risk management and best practices.
Cybersecurity Compliance Checklist
- It is crucial that companies familiarize themselves with the new regulations, create a plan and strategy, and disclose that information to the SEC. Based on the new SEC regulations effective on December 15, 2023, the following cybersecurity laws must be enacted for public companies to be in compliance.
- Mandatory cyber incident reporting requirements for all US-listed companies. Domestic issuers must disclose material cybersecurity incidents through Form 8-K filings, and private foreign issuers must submit Form 6-K filings about any cyber incidents.
- Cyber incidents determined to be material by the company must be disclosed and submitted within four business days of the cyber incident.
- US-listed companies must disclose cybersecurity risk management and governance information, including board proficiency and oversight. These will need to be informed through Form 10-K and Form 20-F filings.
Looking Ahead: Changing Trends in the Cybersecurity Landscape
Moving forward, the SEC will closely watch information security firms, monitoring information security and operational resilience to protect investor information, records, and assets.
It is also important to remain knowledgeable of growing cybersecurity trends to adapt to new cybersecurity challenges quickly. Stay ahead of potential risks by following trends such as how AI and machine learning affect cybersecurity, how to secure cloud-based applications effectively, and more.
RSAC 365 cybersecurity learning provides a wealth of information and helps you stay current on cutting-edge cybersecurity solutions and trends. To learn more about cybersecurity topics in the RSA Conference library here, or register for RSAC 2024, to be a part of the global cybersecurity community, helping to shape the industry's future.