SEC Guidance Emphasizes Mitigating Cybersecurity Risks

Cybersecurity breaches have become substantial risks to organizations, and current guidance from the Security and Exchange Commission’s (SEC) Division of Corporation Finance could tighten in response. Companies are encouraged to disclose to shareholders cybersecurity risks that have a material effect on earnings value or the organization; however additional measures can be taken to protect vital information.

To mitigate financial costs and reputational damage due to a security breach, organizations need to evaluate their vulnerabilities, current controls, and what additional measures may be needed to address these threats. These areas vary immensely between companies yet there are general steps any organization can take to address security risks and concerns.

The Metroplex Technology Business Council® article, SEC guidance emphasizes mitigating cyber security risks for financial reporting, by Brittany George, Weaver IT advisory services senior manager, details steps companies can take to implement the fundamental controls needed for baseline cybersecurity protection.