As the number and severity of cyber-attacks—perpetrated by external hackers and snooping insiders alike—reach epidemic levels, the Securities and Exchange Commission is considering new disclosure demands for companies that suffer such a misfortune.
The SEC last issued staff guidance in October 2011, asking listed companies to provide detailed disclosures of their cyber-exposures. Mary Jo White, recently appointed chairman of the SEC, has since asked her staff to provide her with “a briefing of the current disclosure practices” and overall compliance trends, along with “any recommendations they have regarding further action in this area.”
