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HL Chronicle of Data Protection Privacy & Information Security News & Trends

Tag Archives: assessment

Posted in Cybersecurity & Data Breaches, Financial Privacy

SEC Issues First-Ever Guidance on Disclosure to Investors of Cybersecurity Risks

On October 13 the Division of Corporate Finance at the US Securities and Exchange Commission issued a Disclosure Guidance that for the first time advises registrants — public companies — to evaluate their cybersecurity risks and, if deemed material, to disclose such risks to investors. This Guidance is likely to lead to public companies performing formal and detailed assessments of the cybersecurity risks, and may lead to shareholder litigation following data security breaches with claims that a company failed to perform the assessment and disclose the risks recommended in the Guidance for complaince with securities disclosure laws.