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Abstract: 

As companies increasingly rely on information systems and digital networks to carry out their daily operations, cybersecurity incidents and their responses have grown more frequent, complex, and consequential. And just as the stakes have grown for companies that find themselves confronted with a cybersecurity incident, they have grown for the boards of directors overseeing the response. We offer below key considerations and best practices for boards seeking to mitigate the threat presented by cybersecurity incidents, as well as how to best approach disclosure decisions and obligations as they arise. We also summarize the current regulatory landscape and provide insights into trends in cybersecurity enforcement evinced through recent SEC actions. Rather than maintaining a reactive posture, boards can and should feel empowered in proactively mitigating and managing cybersecurity risk.

Keywords: Cyber Rules; Cyber Incident Disclosures; Materiality Assessments; SEC v. SolarWinds Corp

Affiliations:  1: Willkie Farr & Gallagher LLP; 2: Willkie Farr & Gallagher LLP.