SEC Suit Ushers in New Era of Cyber Enforcement

SEC Suit Ushers in New Era of Cyber Enforcement

November 13, 2023 at 10:08AM

The Securities and Exchange Commission’s lawsuit against SolarWinds marks a significant shift in regulatory expectations and enforcement for cybersecurity in public companies and government contractors. Chief information security officers (CISOs) will need to be more diligent in designing and managing cybersecurity programs. The Department of Defense (DoD) is cracking down on cybersecurity compliance among contractors, which could lead to the loss of government contracts. Misrepresenting security posture also risks exposing critical national security assets to foreign adversaries. Compliance with cybersecurity standards is now essential for fiduciary duty and national security.

Key takeaways from the meeting notes:

– The securities and exchange commission (SEC) lawsuit against SolarWinds signifies a significant change in regulatory expectations and enforcement around cybersecurity.
– Public companies and government contractors now face increased accountability and scrutiny in meeting mandatory minimum cybersecurity standards.
– Chief Information Security Officers (CISOs) at publicly traded companies will need to be more thoughtful and documented in designing, implementing, and managing cybersecurity programs.
– Federal contractors with the Department of Defense (DoD) must comply with cybersecurity requirements, and accurately report their compliance to maintain government contracts.
– Misrepresenting security posture or failing to achieve compliance can result in legal and financial consequences, as well as jeopardize national security.
– The impending Cybersecurity Maturity Model Certification (CMMC) 2.0 program will enforce and audit compliance against mandatory cybersecurity minimums for DoD contractors.
– Executives must prioritize cybersecurity to protect stakeholder data, investments, trust, and competitive advantage, as the government is now holding them accountable for cybersecurity as a matter of law and national security.

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