Regulatory Compliance
SEC Rules Require Material Incident Disclosure
Stay Ahead of Compliance and Risk
SEC rules mandate disclosing supply chain risks that are material to your organization. SecurityScorecard replaces reactive questionnaires with automated, continuous monitoring to ensure your organization stays audit-ready and proactive.
Meet SEC Rules for Third-Party Risk Management
- Disclose third-party incidents with confidence. The SEC requires reporting material cybersecurity incidents at third-party providers and SecurityScorecard ensures you detect them fast
- Establish ongoing risk management processes including continuous monitoring and incident response planning to satisfy SEC requirements for public companies
Eliminate the Compliance Gap in Third-Party Oversight
- Meet SEC disclosure requirements with automated, continuous monitoring capabilities purpose-built for regulatory compliance
- Transform from reactive to proactive and replace periodic questionnaires with intelligence-driven security oversight that scales with your business
Scale Compliance Operations Across Your Entire Ecosystem
- Uncover shadow IT and unreported suppliers that could be responsible for material incidents requiring SEC disclosure
- Manage compliance across thousands of vendors and system components without proportional increases in staff or resources
Discover and Respond to Material Incidents at Speed
- Detect and respond to supply chain security incidents within hours
- Identify breaches and vulnerabilities, and enable timely disclosure of material incidents before they become SEC compliance violations
Strengthen Regulatory Confidence with Proactive Compliance
- Exceed SEC Rules requirements by demonstrating proactive compliance management with comprehensive visibility and reporting that goes beyond minimum mandates
- Automate the collection of audit-ready evidence and board-level metrics to satisfy strict materiality determination and disclosure timelines
Frequently Asked Questions (FAQs)
Get comprehensive Regulatory Compliance supportDoes the SEC rule apply to incidents involving our third-party vendors?
Yes. If a breach at a vendor or supply chain partner has a material impact on your company, you are required to disclose it. The SEC does not distinguish between internal breaches and those occurring within your third-party ecosystem.
What is the deadline for reporting a material incident?
Companies must file a disclosure (Form 8-K) within four business days after determining an incident is material. The SEC requires that this determination be made “without unreasonable delay” following discovery.
How does the SEC define a “material” incident?
An incident is material if there is a substantial likelihood that a reasonable investor would consider it important in making investment decisions. This includes both financial impacts (loss of revenue) and qualitative impacts (reputational damage or IP theft).
How does SecurityScorecard simplify SEC compliance?
The SEC rules require you to describe your processes for managing cyber risk. SecurityScorecard automates this by continuously monitoring your entire vendor ecosystem, detecting third-party breaches within hours, and delivering the objective data needed for board-level reporting.
