To ensure compliance with the SEC’s new regulations and effective oversight of cybersecurity programs by the Board, it is essential to do the following:
Understand the New Regulations
The first step in preparing to comply with the new SEC cybersecurity regulations is understanding the requirements. Familiarize yourself with the new regulations, the specific requirements, and the potential impact on your organization. This will help you identify gaps in your current cybersecurity program and determine what steps need to be taken to comply with the new regulations.
Assess Your Current Cybersecurity Program
Conduct a thorough assessment of your organization’s current cybersecurity program. This assessment should include examining your current policies, procedures, and controls and evaluating the effectiveness of your incident response and recovery plans. Identify any gaps or vulnerabilities in your cybersecurity program and develop a plan to address them.
Involve the Board of Directors
The new regulations require that the Board of Directors be involved in the oversight of cybersecurity programs. To comply with this requirement, it is essential to ensure that the Board is informed about the new regulations and their impact on the organization. Provide the Board with regular updates on the status of your cybersecurity program and the steps being taken to comply with the new regulations.
Develop a Comprehensive Strategy for Reporting Cybersecurity Incidents
The new regulations require that companies submit incident reports to the SEC within a specified timeframe. Develop a comprehensive strategy to ensure that you can report incidents promptly and accurately. This should include developing procedures for collecting and analyzing data about any security incidents and a plan for regularly reviewing the reports to ensure that they are complete and accurate.
Review and Update Policies and Procedures
Review and update your organization’s cybersecurity policies and procedures to comply with the new regulations. This includes updating incident response and recovery plans, as well as any other policies and procedures related to cybersecurity. Establish a process for regularly monitoring and testing your policies and procedures to ensure they are up-to-date and effective. You must also ensure that your staff is properly trained on the new policies and procedures.
Determine the Significance of “Material” to Your Organization Under SEC Regulations
The Securities and Exchange Commission (SEC) requires that companies disclose any “material” cybersecurity incidents, but the definition of materiality is vague. To comply with this requirement, it is necessary to determine what constitutes a material incident for your organization. Establishing criteria and thresholds to define materiality can help you better identify when an incident is significant enough to report to the SEC.