Boards of Directors for public companies across the country are likely to be taking stock of their companys’ cybersecurity practices and strategies after the Securities and Exchange Commission’s adoption of the Cybersecurity Incident Disclosure Rule on July 26. Although the SEC removed the requirement for corporate boards to include members with cybersecurity expertise, it still intends for the Rule to result in greater transparency of companies’ cybersecurity governance and to aid in investor understanding. The Rule presents additional reasons for companies to determine who, if anyone, on their Boards can help with oversight of cybersecurity governance.

On July 26, the Securities and Exchange Commission adopted a new rule regarding cybersecurity risk management, strategy, governance, and incident disclosure.  The “Cybersecurity Incident Disclosure Rule” will be applicable to public companies subject to the reporting requirements of the Securities Exchange Act of 1934. It is premised on the belief that investors will benefit from more timely and consistent disclosure about material cybersecurity incidents, and follows interpretive guidance the SEC issued in 2011 and 2018. The Final Rule will take effect 30 days after being published in the Federal Register – likely by September 1.