SEC Changes Disclosure Rules on Reporting Cyber Attacks

October 14, 2011 -

The U.S. Securities and Exchange Commission (SEC) released new guidelines on Thursday that require publicly traded companies to disclose when they are the victim of a security breach or cyber attack. The new guidelines are the result of members of congress pressuring the watchdog agency to add them following several major cyber attacks earlier this year. Senator John Rockefeller is one of those lawmakers. The SEC said Thursday that if a cyber attack occurs and leads to losses, then companies should disclose the losses, or attempt to estimate what is reasonably possible in terms of a financial impact.

“Intellectual property worth billions of dollars has been stolen by cyber criminals, and investors have been kept completely in the dark. This guidance changes everything,” Rockefeller said in a statement to Reuters.

The SEC said that, while it won't require companies to describe how they will protect themselves in the aftermath of a cyber attack, they do have to disclose the cost of fixing compromised networks, increased security costs, related lost revenues, losses related to losing customers, litigation costs, and possible costs related to a hit in their reputation.

This year several major corporations have been hit with cyber attacks including Sony, Google, Lockheed Martin, Citigroup, the International Monetary Fund and others.

You can read the new guidelines here.

Source: VentureBeat


 
Forgot your password?
Username :
Password :

Poll

Which Feminist Frequency video are you looking forward to most?:

Shout box

You're not permitted to post shouts.
Matthew WilsonWhat do you guys think of the exploding kittens kickstarter raising over 5 mil? there original goal 10k01/31/2015 - 5:56pm
Andrew EisenKarp - Another mind-numbingly awful, willfully disingenuous and poorly constructed video. At least he has a pleasant speaking voice. And the music is nice.01/31/2015 - 5:43pm
Matthew WilsonI hope some company buys sega's ips. creative assembly, and Atlas. the rest of sega can bugger off.01/31/2015 - 4:03pm
WonderkarpTropes VS Women Refund : An Open Letter to Feminist Frequency https://www.youtube.com/watch?v=UoucuL1jazI Guy trying to get refund from the kickstarter01/31/2015 - 3:50pm
Goth_SkunkPrototype was all right. I had way more fun running around in the open world, scaling buildings, gliding in the air, and pulling off insane helicopter-capturing maneuvers than I did with the actual story, though. Eventually the novelty wore off.01/31/2015 - 3:31pm
Andrew EisenI don't know about Joystiq, we may mention it but I don't know that there's that much to really discuss but yeah, Nintendo's YouTube Creator's Program is on the agenda.01/31/2015 - 2:45pm
MonteMatt: they have articles on both Joystiq and nintendo's youtube BS.01/31/2015 - 2:30pm
prh99http://blog.us.playstation.com/2014/12/31/playstation-plus-januarys-free-games/01/31/2015 - 1:56pm
Matthew Wilsonyou guys going to talk about the Joystiq closing, and Nintendo losing its mind?01/31/2015 - 1:11pm
Andrew EisenNeo - Do you have any evidence of that? Please link.01/31/2015 - 11:43am
Papa MidnightI enjoyed the first Prototype... even if the PC Port was horribly done. Prototype 2, however, far exceeds it. It's actually a decent game in my opinion.01/31/2015 - 11:24am
Wonderkarpreally? I didnt play it because the first one sucked. I didnt even know the main characters black01/31/2015 - 10:38am
Neo_DrKefkaFor those who don't know Prototype 2 is free for the PS3 on PS PLUS! It's a great game that failed due to collusion with activist bloggers before the game was released that people would hate it because the main characters black.01/31/2015 - 9:53am
Wonderkarpalso heard Techraptor is working on a big news piece on indiecade01/31/2015 - 9:47am
WonderkarpAndrew : All I know is he was critical of the block list and said the coding was bad.01/31/2015 - 9:42am
prh99Devolvers response to Nintendo's creator program https://mobile.twitter.com/devolverdigital/status/56082061398444851301/31/2015 - 3:24am
Andrew EisenI only know of him being annoyed that IGDA mistakenly hosted on its anti-harassment tools page a blocklist he was on. What else was he critical of?01/31/2015 - 2:19am
Goth_Skunk@WonderKarp: Given Rosario's outspoken criticisms of the conduct of the IGDA, I would not be one bit surprised if he's being strong-armed into silence in closed-door meetings. He's not towing the party line, after all.01/30/2015 - 11:38pm
MechaTama31EZK: Thank you! (And I was able to see that you did it, only because you did it. How appropriate! :)01/30/2015 - 11:37pm
Matthew Wilson@Monte Nintendo is a Japanese company though. consoles are dead in japan. ps sony is a international company, so they do not much care about Japanese sales much.01/30/2015 - 10:11pm
 

Be Heard - Contact Your Politician