A very useful article from the SEC on materiality.

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A very useful article from the SEC on materiality. What it is, and why the material impact of risk is an important consideration for investors and public companies. By this mark cyber is a material risk, supporting the SEC 2021 regulatory calendar, including cyber risk governance.

As far back as 1937:
The concept of materiality is used throughout the federal securities laws, and the Commission itself has used a definition of materiality since at least 1937.[5]‚ Supreme Court Justice Thurgood Marshall is often credited with articulating the concept of materiality, when his opinion in the case‚ TSC Industries v. Northway‚ described an item of information as material if there is a substantial likelihood that a reasonable investor would consider the information important in deciding how to vote or make an investment decision.[6]‚ But in fact,‚ the Commission itself‚ informed the Supreme Courts confidence in the materiality principle, advocating for it as an amicus in this same case.[7]‚ Justice Marshalls opinion described how the SEC has broad statutory authority to promote ¢â‚¬Å“the public interest¢â‚¬Â and ¢â‚¬Å“the protection of investors,¢â‚¬Â and gave due consideration to the SECs view of how to strike the ¢â‚¬Å“proper balance between the need to insure adequate disclosure and the need to avoid the adverse consequences of setting too low a threshold for civil liability.¢â‚¬Â[8]

Another important aspect of this speech is the discussion about oversight, independence and conflict of the SEC over the FASB and PCAOB to which it manages one hopes at arms length to maintain creditability of oversight and assurance.

#cybersecurity‚ #SupplyChainRiskManagement‚ #CyberRiskManagement‚ #riskmanagement‚ #compliance‚ #insurance‚ #cyberinsurance‚ #insurance‚ #regulatorycompliance‚ #regulatoryoversight‚ #esgrisk‚ #cyberregulation‚ #esgreporting

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