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The recent SEC Wells notices issued against SolarWinds are starting to be digested by the Security community, with some calling the move by the SEC as unprecedented. Sending a very clear message to the security community that the regulator is focusing on the effects of cybersecurity on SEC covered entities.
The SEC as the capital markets regulator sees cyber as a significant risk affecting investors, market stability and capital formation. One cannot overstate the importance of the Wells notice and the message that it sends to any organisation or individual that receives one. The notice issued to the CFO and CISO follows an initial investigation, it sends a clear message that the scope is expanding further and cooperation with the regulator is expected by the CFO and CISO.
One must remember there has always been a requirement for SEC covered entities to manage material risks, that include cyber. In addition to the requirements to oversight information security under Sarbanes Oxley for 20 years. The difference today is the SEC and regulators in the US and EU are moving to regulate cyber as a separate risk category. Requiring boards and cyber professionals to address cybersecurity risk management and simplifying the path to corporate and personal liability for cyber.
Ted Dziekanowski Rachel V. Rose, JD, MBA Stephen Pitt-Walker, JD, FGIA
#cybersecurity #cyberriskmanagement #securitiesandexchangecommission
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