Security leaders top 10 takeaways for 2024
At issue is whether the incident led to significant risk to the organization and its shareholders. If so, it’s defined as material and must be reported within four days of this determination being made (not its initial discovery). “Materiality extends beyond quantitative losses, such as direct financial impacts, to include qualitative aspects, like reputational damage and operational disruptions,” he says. McGladrey says the SEC’s materiality guidance underscores the importance of investor protection in relation to cybersecurity events and, if in doubt, the safest path is reporting. “If a disclosure is uncertain, erring on the side of transparency safeguards shareholders,” he tells CSO.