Similarities Between SOX And SEC’s Cyber Rule – Padraic O’Reilly – BSW #373
The Sarbanes-Oxley (SOX) Act was a watershed moment in corporate governance, fundamentally altering how companies approached financial reporting and internal operational controls. By holding executives personally accountable for the accuracy of financial reports, SOX restored investor confidence in the wake of corporate malfeasance. The SEC's new cybersecurity rule represents a similar pursuit to restore investor confidence — this time for the digital age, centered on integrating cybersecurity into overall risk management.
Padraic O'Reilly, Founder and Chief Innovation Officer at CyberSaint, joins Business Security Weekly to discuss the similarities between SOX and SEC's Cyber Rule. The SEC's cybersecurity rule introduced several vital requirements that build on the principles established by SOX, including:
- Companies must report material cybersecurity incidents on Form 8-K, ensuring timely and transparent disclosure to investors.
- Companies must provide regular updates on their cybersecurity risk management policies, the role of management in implementing these policies and the board's oversight of cybersecurity risks.
- The rule encourages companies to disclose the cybersecurity expertise of their board members, highlighting the importance of informed oversight in managing cyber risks.
- The rule requires cybersecurity disclosures to be presented in Inline Extensible Business Reporting Language, or Inline XBRL, ensuring consistency and comparability across filings.
This segment is sponsored by CyberSaint . Visit https://securityweekly.com/cybersaint to learn more about them!
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Guest
Padraic O’Reilly is Chief Product Officer and Co-Founder at CyberSaint, where he leads product innovation and development. His experience as a Harvard-trained economist, IT risk and compliance consultant, and his rapid exposure to Cybersecurity led him to seek out CISOs, CIOs, and Boards of Directors at global organizations to pursue the answer to the question – how can cyber be managed, measured, and understood like any other business function? Padraic’s current activity spans working directly with organizations from public agencies to private companies across the globe to understand how to measure cyber risk, especially amidst the global pandemic which is fueling massive digital transformation projects around the world. Padraic was a key member of the group providing feedback on the NIST Cybersecurity Framework during its development, and is an expert in regulatory standards both in security and privacy, including the NIST Risk Management and NIST Privacy Frameworks. An expert in Artificial Intelligence (AI) and economic modeling, Padraic works with members of the Global 500 to research and deploy risk quantification, risk intelligence gathering, and risk reporting and communication strategies. Padraic also holds a patent entitled, “System And Method for Monitoring And Grading A Cybersecurity Framework” which has inspired much of his work on cohesive IT and cyber risk management approaches.
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