Leveraging Collaboration and Transparency: How CISOs Can Comply With New SEC Regulations

A standard unit of measurement and transparency helps CISOs create a common language to communicate vulnerabilities in their environment as well as those of their third and fourth parties.

 

As we kick off 2024, CISOs at public companies will certainly be thinking of new regulations from the U.S. Securities and Exchange Commission (SEC) on security incident reporting, effective December 15, 2023. The new regulations demand unprecedented transparency and collaboration from CISOs. Open communication with the C-Suite and third-party partners will be a critical tool for maintaining compliance with the SEC’s new rules.

Transforming the C-Suite from bystanders to co-pilots

To comply with the new regulations, public companies will need stronger communication and collaboration between boardroom executives and their cybersecurity teams. Right now, CEOs and CFOs don’t always understand the language of cyber risks. 

The new rules add item 1.05 to Form 8-K, which requires timely and accurate disclosure of:

• The material aspects of the nature, scope, and timing of the incident; and
• The material impact or reasonably likely material impact on the registrant, including on the registrant’s financial condition and results of operations.

CFOs and other key leaders need to be involved in risk assessments from the start in order to understand the financial stakes and make informed decisions about reporting risks and investments in cybersecurity.

Proactive threat detection in your vendor ecosystem

No single entity has a monopoly on cyber intel. Third-party vendors, industry peers, and even government agencies each hold valuable pieces of the puzzle. By fostering open communication and information sharing, you can stitch together a comprehensive picture of the threat landscape, proactively identifying and mitigating risks before they wreak havoc.

Using SecurityScorecard and Riscosity to achieve compliance through collaboration and transparency

Consistent and data-driven Cybersecurity Ratings enable all stakeholders to understand the vulnerabilities in their own environment as well as those of their third and fourth parties. SecurityScorecard’s standard A-F grading scale streamlines cyber risk communication and empowers risk mitigation across the entire vendor ecosystem. 

Riscosity is the data flow security platform that enables full visibility of any data in transit and automates the redaction, remediation, and redirection of sensitive events without engineering support – equipping teams with an automated approach to meet security requirements.

With SecurityScorecard and Riscosity, customers can overlay API-based data-in-transit insights with vendor risk profiles. Scale true vendor risk management with frictionless deployment on-prem or in the cloud in minutes.

Ready to get started with SecurityScorecard and Riscosity?  Please contact [email protected].