The SEC recently issued new guidance on cybersecurity disclosure and policies, and it is no wonder. According to an updated Audit Analytics analysis, nearly 65% of affected public companies did not report a cybersecurity breach to the SEC.
As policies change, the accountant’s role in cybersecurity changes as well. According to an Accounting Today article by Michael Cohn, accountants can help companies meet SEC demand for cybersecurity disclosures.
With the Audit Analytics Cybersecurity Data Breach database, accountants can:
- Identify material breaches
- Benchmark breach severity
- Assess clients’ cyber risks
- Identify companies subject to cyber litigation
Key data points include date of breach, type of attack, type of information stolen, number of records stolen, and direct links to SEC disclosures.
Sort by company, date, or size of attack, to easily identify current breaches or research historical filing information from foreign & domestic SEC Registrants since 2010.
In addition to specific data breaches, Audit Analytics also tracks the risk factors for the Russell 3000.
In 2011, guidance was issued to clarify public companies’ responsibility to disclose cybersecurity issues. The guidance requires public companies to disclose cybersecurity as a Risk Factor for companies that rely on technology, and for the disclosure of cyber-incidents that may have a material impact on the company.
Audit Analytics tracks 10-K, Item 1A for the Russell 3000, and provides you with those companies that disclose a cybersecurity risk.
Key data points include cyber risk language from disclosure, attack or breach status, and indicates companies with or without related insurance protection.
The Cybersecurity data is available for purchase as part of Audit Analytics’ Exploratory Research. Our analysts engage in this research to help better understand current market conditions, and track the latest disclosure trends and regulations as they impact financial reporting.
For more information, please email us at info@auditanalytics.com or call (508) 476-7007.