How to Meet SEC Cybersecurity Disclosure Requirements with Proactive Application Security

In July 2023, the SEC introduced significant changes in cybersecurity accountability for public companies, requiring disclosure of material cybersecurity incidents within four business days of determining their materiality. Annual disclosures must now include details about risk management processes, board oversight, and the effectiveness of cybersecurity programs, with compliance deadlines starting in December 2023 and enforcement beginning in 2024. Application security teams are tasked with demonstrating systematic risk management processes to identify and manage cybersecurity threats, emphasizing the need for proactive measures like regular testing and maintaining visibility over the attack surface. StackHawk assists companies in meeting these requirements by integrating security testing into CI/CD pipelines, ensuring vulnerabilities are detected and addressed before reaching production, and providing comprehensive documentation and metrics to support compliance. This shift-left security strategy helps reduce the likelihood of incidents requiring disclosure, facilitates informed materiality assessments, and supports board-level oversight and regulatory scrutiny, thereby demonstrating a robust and consistent cybersecurity posture.