CrowdStrike SEC Readiness Offering Prepares Public Companies for New Breach Disclosure Rules
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Insights
The introduction of CrowdStrike's SEC Readiness Services signifies a pivotal advancement in the realm of corporate cybersecurity, particularly in the context of compliance with the newly established SEC breach disclosure mandates. These services are designed to equip companies with the capabilities to conduct thorough technical risk assessments and to refine their decision-making process regarding the materiality of cybersecurity incidents.
The significance of this offering lies in its potential to enhance a company's ability to preemptively identify and rectify vulnerabilities, thereby fortifying its defenses against potential breaches. This is crucial, as the consequences of a cyber incident can be far-reaching, potentially affecting share prices, investor trust and leading to legal repercussions if disclosure obligations are not met promptly and accurately.
Furthermore, the use of CrowdStrike's AI-native Falcon XDR platform in these services underscores the increasing reliance on advanced technology to navigate the complex cyber threat landscape. As organizations strive to align their security policies with regulatory requirements, such technological integration can be instrumental in providing the necessary visibility and control over their cybersecurity posture.
With the SEC's enhanced focus on cybersecurity transparency, public companies are now under greater scrutiny to disclose material cyber incidents within a stringent four-day window. CrowdStrike's SEC Readiness Services are positioned to address this regulatory shift by aiding companies in interpreting what constitutes a 'material' cybersecurity event and preparing for the possibility of such disclosures.
The creation of these services is a direct response to the legal and financial repercussions that could arise from non-compliance. Companies that fail to adhere to these regulations may face substantial penalties, litigation and damage to their reputation. By providing both technical assessments and program reviews, CrowdStrike aims to ensure that companies are not only compliant but also resilient in the face of cyber threats.
This development emphasizes the legal community's growing intersection with cybersecurity, highlighting the need for corporate governance to incorporate robust cyber risk management practices into their strategic planning and public reporting.
The announcement of CrowdStrike's SEC Readiness Services could potentially impact the company's financial performance by opening a new revenue stream that caters to the heightened demand for cybersecurity compliance solutions. As public companies grapple with the SEC's new disclosure rules, CrowdStrike's offering may see increased adoption, which could positively influence its market position and stock valuation.
From an investor's standpoint, CrowdStrike's proactive approach to cybersecurity regulation compliance not only enhances its appeal as a security partner but also demonstrates an alignment with current regulatory trends. This may instill greater confidence among shareholders and prospective investors, as the company is effectively addressing a critical market need.
Moreover, the broader market implications of such services suggest a possible uptick in demand for cybersecurity solutions that can aid companies in navigating the complexities of disclosure compliance, potentially affecting the sector's overall performance.
Industry-first offering empowers Boards of Directors and C-suite executives to navigate SEC breach disclosure regulations by assessing technical risk, testing materiality decisions and informing annual disclosures
The new SEC regulations require public companies to disclose the processes for assessing, identifying and managing material risks from cybersecurity threats in their annual 10-K filing, and to report on material cyber incidents within four days of determining an incident is material. These new regulations increase pressure on public companies and their boards, as determining the materiality of a breach can be difficult, and failure to comply with the requirements could result in litigation or financial penalties. CrowdStrike’s comprehensive SEC Readiness Services assist Boards of Directors and C-suite executives in addressing critical questions, assessing organizational risk, understanding what might constitute a material incident and having confidence that annual cyber disclosures are accurate.
“The new SEC rules substantiate the gravity of today’s cybersecurity threats and have changed the way company boards should view cyber risk. In the face of unprecedented pressure on boards and executives to prioritize cybersecurity, it is critical they have a partner like CrowdStrike in the foxhole with them,” said George Kurtz, co-founder and CEO of CrowdStrike. “Our expertise from responding to some of the world's most damaging cyber incidents, unparalleled understanding of the threat landscape and industry-leading technology provide the edge public companies need to meet disclosure requirements and harden their environments to stop breaches.”
CrowdStrike’s new SEC Readiness Services help organizations navigate SEC cyber regulations through:
- Detailed Risk Management Reviews: CrowdStrike boosts organizational confidence in risk disclosures with a two-pronged approach consisting of a technical assessment and program review. Leveraging the power of the Falcon platform, organizations gain a detailed technical assessment of their current security posture. By identifying gaps that could lead to an incident, organizations can align security policies and practices to harden their cyber defenses and stop breaches. In addition, CrowdStrike experts provide a programmatic review of the organization’s risk management practices, ensuring that the people, processes and governance structures align with the business. C-suite executives and Boards of Directors gain deep visibility and oversight of the organization’s risk posture to support public filings.
- Materiality Tabletop Exercises: CrowdStrike experts design exercises that enable public companies to test their processes for determining if a security incident is material and requires filing an 8-K with the SEC. CrowdStrike tailors real-world scenarios to each organization, allowing them to ensure they have the right people at the table, considering the right information, with the appropriate guidance necessary to know if a public disclosure should take place.
For more information on CrowdStrike’s new SEC Readiness Services, please read our blog.
About CrowdStrike
CrowdStrike (Nasdaq: CRWD), a global cybersecurity leader, has redefined modern security with the world’s most advanced cloud-native platform for protecting critical areas of enterprise risk – endpoints and cloud workloads, identity and data.
Powered by the CrowdStrike Security Cloud and world-class AI, the CrowdStrike Falcon® platform leverages real-time indicators of attack, threat intelligence, evolving adversary tradecraft and enriched telemetry from across the enterprise to deliver hyper-accurate detections, automated protection and remediation, elite threat hunting and prioritized observability of vulnerabilities.
Purpose-built in the cloud with a single lightweight-agent architecture, the Falcon platform delivers rapid and scalable deployment, superior protection and performance, reduced complexity and immediate time-to-value.
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View source version on businesswire.com: https://www.businesswire.com/news/home/20240314013425/en/
Kirsten Speas
CrowdStrike Corporate Communications
press@crowdstrike.com
Source: CrowdStrike
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