Rethinking the Role of Compliance

What is the SEC’s Rule on Cybersecurity Risk Management, Strategy, Governance, and Incident Disclosure?

The U.S. Securities and Exchange Commission (SEC) has issued new rules for Cybersecurity Risk Management, Strategy, Governance, and Incident Disclosure by public companies, effective December 15, 2023. As the SEC’s final rule outlines, these regulations require registrants to provide detailed disclosures about their cybersecurity processes, governance, and incident management in their annual reports​. Meeting these requirements can be complex and resource-intensive for many organizations.  However, Qmulos offers a comprehensive solution to streamline compliance and enhance cybersecurity posture.

Key Requirements

The SEC’s final rule mandates registrants to disclose the following in their annual reports:

  1. Processes for Assessing, Identifying, and Managing Cybersecurity Risks:
    • Registrants must describe their processes for assessing, identifying, and managing material risks from cybersecurity threats​
  2. Board Practices in Oversight of Cybersecurity Risks:
    • Boards of directors need to outline their oversight practices related to cybersecurity threats​
  3. Management’s Role and Expertise in Cybersecurity Risk Management:
    • Disclosure of management’s role and expertise in managing material cybersecurity risks is required​
  4. Timely Information Collection for Updated Disclosures:
    • Companies must ensure they have policies and procedures for collecting and disclosing cybersecurity information promptly​
  5. Identifying Gaps in Disclosure Capabilities:
    • Registrants should identify any gaps in their ability to disclose required information and take steps to address these gaps​
  6. Enhancing Cybersecurity Programs:
    • Organizations should undertake initiatives to enhance their cybersecurity programs, including new monitoring and risk management processes, investments in technology, and updated policies and procedures​

 

Qmulos: Your Partner in Compliance and Cybersecurity

Qmulos provides solutions aligned with the SEC requirements, helping organizations achieve true compliance automation and enhanced cybersecurity risk management.

  • Real-time Risk Management and Compliance Automation
    Qmulos’s Q-Compliance platform offers real-time control visibility and automated compliance processes. This allows organizations to streamline the tedious tasks of collecting and analyzing technical evidence across multiple frameworks, ensuring timely and accurate compliance reporting. Organizations can then automate the detection of security and compliance issues, correlate threats and controls, prioritize controls and adapt based on risk, and dynamically respond to new threats and vulnerabilities

  • Integrated Risk Management Strategies
    Qmulos supports a risk-first approach by integrating cybersecurity risk management with overall business strategies. This ensures that risk, security, and compliance operations are aligned, providing a holistic view of the enterprise’s cybersecurity posture​. Some key benefits include alerts to automatically detect suspicious activity, workflows for response and investigation, and risk scoring to identify risky hosts and users

  • Enhanced Governance and Reporting
    Qmulos facilitates robust governance practices by providing insights into the board’s oversight of cybersecurity risks and the role of management. The platform’s capabilities enable detailed reporting on how cybersecurity risks are identified, assessed, and managed across the organization​. All the reports are backed by data-driven analytics to achieve real-time risk reporting

  • Bridging Disclosure Gaps
    Qmulos helps organizations identify and bridge gaps in their cybersecurity disclosures. The platform’s real-time analytics and continuous monitoring capabilities ensure that all required information is collected and reported accurately and promptly​

  • Continuous Improvement Initiatives
    Qmulos drives continuous improvement in cybersecurity programs by supporting new monitoring processes, technology investments, and the development of updated policies and procedures. This proactive approach helps organizations stay ahead of emerging threats and regulatory changes​

 

Conclusion

Complying with the SEC’s new cybersecurity rules is essential for all registrants and non-registrants following industry best practices. By leveraging Qmulos’s advanced compliance and cybersecurity solutions, organizations can meet regulatory requirements and enhance their overall security posture. Qmulos provides the tools and expertise needed to navigate the complexities of modern cybersecurity, ensuring a resilient and compliant enterprise.

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