SEC Cybersecurity Disclosure Rules
Public companies must disclose material cybersecurity incidents within four business days and report on risk management, strategy, and governance annually. Petronella Technology Group helps you build the processes and controls to comply.
What the SEC Rules Require
Final Rule Release No. 33-11216, adopted July 26, 2023, creates two distinct compliance obligations.
Incident Disclosure (8-K Item 1.05)
- File Form 8-K within 4 business days of materiality determination
- Describe nature, scope, timing, and material impact
- Materiality assessment process must be prompt
- No technical details that aid attackers
Annual Disclosure (10-K Item 106)
- Cybersecurity risk management processes
- Board oversight of cybersecurity risk
- Management's role in assessing and managing risk
- Strategy for addressing cybersecurity threats
SEC Compliance Services
We build the internal processes and controls that make SEC cybersecurity compliance operational.
Materiality Determination Framework
Structured processes for evaluating incidents against SEC materiality standards, integrating NIST 800-61 incident response with SEC-specific workflows.
Incident Escalation Workflows
Define escalation paths from security operations to C-suite decision makers who conduct materiality assessments within the 4-day window.
Annual 10-K Disclosure Preparation
Substantive Item 106 disclosures covering risk management, governance, and strategy that go beyond boilerplate language.
AI-Powered Monitoring
Continuous security monitoring with AI-powered tools that detect incidents early and flag potential materiality triggers for escalation.
Achieving SEC Cybersecurity Compliance
Assess current cybersecurity governance
Build materiality determination framework
Design incident escalation workflows
Align controls to NIST frameworks
Prepare annual disclosure language
Deploy continuous monitoring and response
Frequently Asked Questions
When does the 4-day clock start?
The clock starts when the company determines an incident is material, not when the incident is detected. Companies must have prompt materiality assessment processes. Unreasonable delays in making determinations will be scrutinized by SEC enforcement.
What qualifies as a "material" cybersecurity incident?
Which framework should we align to?
The SEC does not mandate a specific framework, but aligning to NIST 800-53 or NIST CSF 2.0 demonstrates structured risk management that strengthens both your security posture and disclosure credibility. See our framework comparison guide.
Does this apply to smaller reporting companies?
Yes. The rules apply to all SEC registrants. Smaller reporting companies received an extended compliance date for incident disclosure but must now comply with all requirements.
How does Petronella support forensic investigation?
Petronella combines AI-powered monitoring with licensed digital forensic expertise for both incident detection and evidence preservation. Our founder Craig Petronella is a Licensed Digital Forensic Examiner with 24+ years of experience.
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Prepare for SEC Cybersecurity Compliance
Build the incident response and governance processes the SEC requires before a breach forces your hand.