Cyber Risk Materiality and SEC Disclosure

Speaker: Jack Freund
Price: Free
Abstract: 

Everyone in cybersecurity is talking about the new SEC cyber disclosure rule. It’s a nuanced topic and requires that one come to some conclusion about what is “material.” This webinar will cover some recent research on this topic and review the Freund-Jorion Cyber Materiality Heuristic which is a framework for evaluating whether your quantitatively assessed risks and incidents are material and subject to disclosure. Jack will review the impetus for the research by going back to his COVID-era SIRACon presentation on material fines. He will also review what the accounting and audit profession has been saying about materiality. It will end with a very specific recommendation for determining materiality and how that can form a foundation for establishing your own process for determining material cyber incident disclosure and its implications for cyber risk appetite.