Remarks of SEC Enforcement Director on Cyber Resilience

On June 22, 2023, Gurbir S. Grewal, the Head of Enforcement at the SEC, gave a presentation about cyber resilience at the Financial Times Cyber Resilience Summit. Director Grewal explained that cyber resilience is an important principle: since cybersecurity incidents are probable, companies should be ready to handle and respond appropriately to them.

Although Director Grewal refrained from expressing an opinion on the SEC's ongoing efforts to establish new regulations concerning cybersecurity disclosure, he did outline five key principles that influence the Enforcement Division's stance on a company's cybersecurity and obligations regarding disclosure.

Director Grewal further highlighted that not revealing cyber occurrences may result in more severe consequences and urged organizations that have experienced or suspect a substantial cyber incident to promptly communicate with the SEC.