SEC’s Increasing Cybersecurity Disclosure Requirements

Seyfarth Shaw Attorney Matthew I. Hafter looks at the key areas where disclosure may be required: risk factors, management discussion and analysis, description of business, legal proceedings and financial statement disclosure. Cybersecurity has become a major concern for the SEC, he says, and the agency is likely to continue to want more detail in these filings.

All companies required to report to the SEC need to aware of how cybersecurity issues should be disclosed. The SEC’s position, and a summary of SEC guidance regarding what needs to be disclosed.