The Securities and Exchanges Commission (SEC) drive for cybersecurity regulation does not look like it is wavering.

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The Securities and Exchanges Commission (SEC) drive for cybersecurity regulation does not look like it is wavering. One expects the SEC to release their requirements for public companies to declare their cybersecurity governance, programs and individual expertise in the coming months.

€œOnly when the tide goes out do you learn who has been swimming naked. – Warren Buffett. That’s when we will see what who is wearing the emperor’s new

Cyber is no longer a FUD debate. Regulators will deliver cyber requirements ‘Left of Bang’ straight into the board room and with 90% of boards lacking a single qualified or experienced cyber director boards will soon be required to make some decisions.
1. Recruit experts – There’s a global lack of skilled resources in cyber and risk. the number of experts that can demonstrate that they have delivered cybersecurity risk and cyber programs for FTSE 100s is limited. This creates an interesting issue with liability.
2. Retain outside experts – Same as above. The demand of outside experts will ramp up the day rate.
3. Build up internal expertise – Is a medium term strategy and should not be ignored. However once skilled up, retention becomes a challenge.

A 4th option is to mix and match 1, 2 and 3. Cyber maturity for many companies is low and regulatory compliance will force companies to develop and mature their cyber expertise. As cyber will become another board reporting line for CEOs and Chairs, that require qualified expertise.

The final challenges will come from regulators. Recent cases against Uber and Drizly demonstrate the direction of travel from the DoJ and SEC with regulatory oversight and assurance. Simply put, boards are being held accountable for their cybersecurity governance and compliance, along with their cybersecurity.

If cyber experts take the ‘Kings Shilling’ it should not be taken lightly. As a cyber expert witness and advisor, defending cyber litigation is complex and is not stress free, as decisions will be interrogated in detail.

Ted Dziekanowski Rachel V. Rose, JD, MBA Stephen Pitt-Walker, JD, FGIA Rebecca Hopkinson Neil Humphreys

#cyberriskmanagement #cybersecurity #cyberregulation #governance #securitiesandexchangecommission

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