Cybersecurity is no longer just a tech concern, it’s a boardroom priority. The 2024 updated SEC cybersecurity rule places new expectations on how public companies manage, report, and govern cyber-related risks. This is compelling many companies to join forces with IT strategy consulting services to strengthen compliance and build a more resilient risk posture.
We asked Greg Miller, CPA, CISA, and Vice President of Consulting Services at Assurance Dimensions, to provide us with insights into these new guidelines and how businesses can align their IT practices with current regulations.
Let’s dive into what the SEC cybersecurity rule requires.
What the SEC Cybersecurity Rule Requires
The rule focuses on three key areas that require careful coordination between IT, legal, and executive leadership:
- Timely 8-K reporting: Public companies are required to disclose material cybersecurity incidents within four business days of becoming aware of the incident.
- Risk management and governance disclosures in the 10-K: This requires companies to disclose their cyber risk management, strategy, and governance.
- Board and management oversight responsibilities: This requirement asks companies to explain how their leaders oversee cybersecurity risks.
The changes to the cybersecurity rule place a greater emphasis on coordination, IT, legal, and executive management. Miller said, “The SEC’s new rules don’t just require faster incident reporting—they require companies to build cybersecurity into the core of their governance model.”
Why Companies Struggle to Comply
Although companies are now required to integrate cybersecurity risk management into their day-to-day operations, some struggle to comply with or maintain compliance with the updated rule.
Many companies face challenges due to vague guidance and siloed processes. Here’s why:
- Unclear materiality thresholds: Without clear materiality thresholds, teams are left guessing what qualifies as a “material” cyber event. Add to that fragmented response plans and a lack of executive-level visibility, and compliance becomes a moving target.
- Fragmented response plans: When a cybersecurity attack happens, it’s all hands on deck. However, without strategic cross-department alignment, issues quickly arise, leaving your business at significant risk.
- Limited executive visibility: IT doesn’t always get a seat at the boardroom table. A lack of communication infrastructure creates a gap between IT teams and board-level reporting, leaving executives in the dark during critical moments.
- Lack of cross-functional alignment: Without collaboration between IT, legal, and compliance teams, companies struggle to build governance models that meet SEC expectations.
Thankfully, IT strategy and consulting services are available to bridge the gap and ensure compliance with the SEC rule.
How IT Strategy & Consulting Services Close the Gap
IT strategy and consulting services provide an excellent external resource to help companies develop a cybersecurity risk management plan in compliance with the 2024 SEC rule, thereby mitigating risk and maintaining a good standing with investors.
Miller said, “We help organizations define and document their cyber risk strategies in a way that satisfies regulators and supports board oversight.”
Here are a few ways these services can help:
- Define incident response processes: Create a detailed response plan that ensures that employees are on the same page in the event of an attack.
- Align cyber risk with business strategy: This ensures governance aligns with reality.
- Build documentation and reporting structures: Build clear, audit-ready documentation structures that can withstand outside scrutiny.
- Conduct readiness assessments and table-top testing: Identify blind spots before issues occur.
Why Choose Assurance Dimensions
SEC compliance isn’t one-size-fits-all, and neither is your IT strategy. That’s why organizations work with Assurance Dimensions to tailor cybersecurity governance frameworks that perform effectively under pressure and meet regulatory requirements.
As Miller puts it, “Our clients don’t just want to avoid penalties—they want to be confident that their IT governance framework can hold up to scrutiny. That’s exactly what we deliver.”
Ready to strengthen your cyber governance strategy? Our advisory team brings decades of real-world experience across IT, audit, and regulatory land. Learn about our IT advisory and consulting services to ensure your compliance program supports risk resilience and investor confidence.