SEC Adopts Meaningless And Ambiguous "Reasonably Likely" Standard In New Cybersecurity Incident Disclosure Rules

The Securities and Exchange Commission yesterday adopted new rules requiring registrants to disclose on Form 8-K any cybersecurity incident which they determine to be material. The new Item 1.05 requires description of the material aspects of the incident's nature, scope, and timing, as well as its material impact or reasonably likely material impact on the registrant. In addition, new Item 106(b) of Regulation S-K requires registrants to describe their processes, if any, for the assessment, identification, and management of material risks from cybersecurity threats, and to describe whether any risks from cybersecurity threats have materially affected or are reasonably likely to materially affect their business strategy, results of operations, or financial condition.