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As we discussed when the SEC final rule was made public, covered entities will not be in control of all communications to the markets. Hacked companies could find that control over cyber incident communications that face the outside world, are taken away from them. Throwing firms in reactive mode.
The enclosed article discusses the recent case of a cyber attack against MeridianLink (MLNK). A NYSE listed firm and provider of loan origination systems and digital lending platform for financial institutions may demonstrate. Hackers threat to report the attack to the SEC is just another tactic hackers can use to increase the pressure on targeted firms. Another tactic that sits along side the hackers understanding of a targets insurance posture, the view it has over the cybersecurity of a firm and the appropriate buttons to push to illicit a ransom payment.
The adoption of cyber regulation shifts cyber risk transfer ‘Left of Bang’ onto financial statements. It also introduces civil and criminal risks for boards. In the case of an SEC report one suspects all it will do is compress the 8K reporting time line. However, as reported previously, it could provide a regulator with data related to the attack, the compromise and exfiltration of data. That could be used to assess a company’s 10K filings over material risk.
Ted Dziekanowski Brian D. McCarthy Rachel V. Rose, JD, MBA Bob Dix
#paravasecuritysolutions #cybersecurity #cyberriskmanagement #cyberregulation
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