Call us now:
The MGM cyber attack highlights the impact of cyber on customers and shareholders and surfaced a cyber attack on one of MGMs competitors on the Las Vegas Stripe, Caesars entertainment. It also highlights the changing sentiments of market participants such as credit rating agencies and investors. The MGM share price fell following the attack and Moody’s raised the possibly of a the rating agency changing MGMs credit rating.
The attack may go someway to justify SECs regulatory position on cyber and investor protection, as the sentiment shown by Wall Street may also be reflective of the SECs cyber ruling, that MGM and other SEC registrants will be required to comply form December 2023. As the SEC moves to regulate the implementation of cybersecuirty risk management, that 99% of SEC registrants are not ready for and regulation that Wall Street, regulators, investors and lawyers are looking towards, with what can only be described as a keen interest.
With talk that insurers may not cover regulatory breaches, boards of directors should be very clear what their corporate and person liabilities are. The SEC, DoJ, FTC and FCC are gearing their enforcement regimes to cover a broad range of corporate enforcement actions, that includes cyber.
One wonders if MGM may get let off lightly. From December 2023 registrants may not be so lucky.
Ted Dziekanowski
#cybersecurity #cyberriskmanagement #cyberregulation
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