Assessing the Securities and Exchange Commission’s New Interpretive Guidance Regarding Cybersecurity Disclosures
April 10, 2018
The SEC issued an interpretive release to help guide public companies faced with cybersecurity incidents and risks in late February.
The guidance, applicable as of February 26, 2018, compares the importance of digital information to electricity and other forms of power. Likening cybersecurity to a utility like electric power has some important implications. In the United States, we take the availability of electricity for granted, and even temporary losses of power can yield widespread and sometimes unanticipated negative results. Some individual comments in the interpretive guidance show the potential breadth of what the SEC may deem “material” regarding cybersecurity disclosures.