What to Report About Cybersecurity and Getting the Most Out of New Board Management Tools
In the last episode of Governance Questions Podcast from Governance Intelligence, we hear from Megan Gordon, Partner at Clifford Chance, about some of the best ways to implement the The SEC’s new cybersecurity rules.
These went into effect at the end of 2023 and are generating many requests from governance teams looking to apply them to both their upcoming Form 10K filings and, in the event of an attack, potentially to a Form 8K. For example, the rules require companies to report significant cybersecurity incidents within four business days of determining whether the incident was indeed material. This naturally raises the question of what qualifies as “material”.
The rules also require companies to disclose in Form 10K filings their cybersecurity risk management, strategy and governance. Companies should describe their processes for assessing, identifying and managing significant risks related to cybersecurity threats. As with incident reporting, questions arise about what companies should publicly disclose in order to balance SEC requirements while not revealing information that could raise security or liability risks .
Gordon provides advice to governance teams on how they can think about new reporting, best practices for creating the necessary policies and processes, what the first filings of Forms 8K and 10K indicate about companies’ approaches, and what the boards need to know.
Later in the episode, Marion Lewis, CEO of Govenda, talks to us about how AI helps company secretaries manage their board of directors. She explains the steps they should take when considering using an AI tool for board management, how to ensure boards are using AI safely, how to Board members are considering having AI both in the boardroom and throughout the company, and what AI issues should arise. Agenda 2024.
You can learn more about AI and board management in our recent governance playbook. here and more from Lewis on AI in governance here.
The Governance Matters podcast provides listeners with insight into the current issues of the day for corporate secretaries, general counsel and other governance professionals.
The series examines how the roles of the corporate secretary and board have evolved over time, as well as how the governance landscape continues to change. From ESG and entity management to shareholder engagement and technology, hear from award-winning governance professionals and leading advisors on the latest issues in public company governance.
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