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ARTICLE · 01 AUGUST 2023

SEC Finalizes Cybersecurity Incident And Governance Disclosure Obligations For Public Companies

The long-awaited U.S. Securities and Exchange Commission (SEC) cybersecurity rules for public companies have finally arrived, with some improvements from the proposed rules released in March 2022.

United StatesTechnology

Highlights

  • The long-awaited U.S. Securities and Exchange Commission (SEC) cybersecurity rules for public companies have finally arrived, with some improvements from the proposed rules released in March 2022.
  • Still, the final rules will likely create significant compliance challenges as well as litigation and enforcement risks for public companies. Bottom line, companies will need to thoroughly analyze their internal disclosure controls with respect to cybersecurity threats and incidents, reassess their cybersecurity risk management processes and governance practices, and expend substantial effort in drafting their cybersecurity disclosures to minimize such risks.
  • This Holland & Knight alert provides a closer look at the SEC's final rules and offers a number of key takeaways and considerations for public companies.

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