Regulator & market disclosure

This control area governs how an organization determines if a security incident is "material" and ensures that such events are disclosed to regulators and shareholders within legal timeframes. Frameworks require this to ensure market transparency, protect investors, and prevent the concealment of systemic risks.

Counts toward

SEC Cyber Disclosure

Implement it once

Define a materiality framework that establishes quantitative (e.g., financial loss) and qualitative (e.g., reputational damage or data sensitivity) thresholds for disclosure.
Establish a Disclosure Committee comprising legal counsel, the CFO, and the CISO to evaluate incidents against these thresholds.
Integrate specific "disclosure triggers" into the existing Incident Response Plan to ensure reporting is not overlooked during technical remediation.
Create pre-approved communication templates for regulatory filings and public announcements to reduce drafting time during a crisis.
Document a formal timeline that maps internal escalation paths to external regulatory deadlines (e.g., 4 business days).

Evidence it produces

A written Materiality Assessment Policy defining the criteria for "material" events.
Dated records of materiality evaluations performed for significant incidents, including the rationale for the decision.
Copies of submitted regulatory notifications or published market disclosures.
Minutes from Disclosure Committee meetings where incident impact was debated and decided.

Where it counts

Standardizing this process satisfies overlapping requirements across securities laws, financial industry regulations, and global cybersecurity frameworks. A single evidence package demonstrating a consistent assessment and reporting workflow serves as proof of compliance for multiple auditing bodies simultaneously.