Page 159 - Cyber Defense eMagazine September 2023

SEC’s New Cybersecurity Rules to Strengthen

Transparency and Accountability

Why public companies should prepare now to safeguard their operations, reputation, and
financial success.

By Paul Truitt, Principal and National Cybersecurity Practice Leader, Mazars

In a world where technology drives innovation, the security of enterprises and their assets has become
of paramount concern. According to the latest IBM Data Breach Report, 83% of organizations
experienced more than one data breach during 2022. With every company in the crosshairs, federal
regulators have taken a key step that will require publicly traded businesses to rethink their approach to
cybersecurity and avoid severe financial, operational and reputational damage.

In late July, the U.S. Securities and Exchange Commission (SEC) published its final rule on Cybersecurity
Risk Management, Strategy, Governance and Incident Disclosure. Set to take effect in December, this
new mandate requires publicly traded companies to disclose “material” cyber events on a Form 8-K within
four business days of the organization determining materiality (materiality should be established per
current federal securities law).

Cyber Defense eMagazine – September 2023 Edition 159
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