SEC issues guidance on disclosure of cybersecurity risks and cyber incidents

On October 13, the SEC's Division of Corporation Finance issued a "disclosure guidance" regarding the obligations of public companies to disclose cybersecurity risks and cyber incidents. The guidance follows a communication in May 2011 from five members of the Senate Committee on Commerce, Science and Transportation to SEC Chair Mary Schapiro asking the SEC to issue guidance regarding disclosure of information security risk, including material network breaches.

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