Installing cybersecurity is a smart investment. Protecting customer information builds trust, and customers will spend money with a business they know to be putting their best interests first. Investors are attracted to companies with cybersecurity because of the peace of mind it offers. And cybersecurity is crucial for safeguarding company data.
The new SEC (U.S. Securities and Exchange Commission) rules regarding cybersecurity will come into play this spring. This stricter legislation is intended to force public companies (any company that has shares traded on a stock market) to offer full discloser of a cyber incidence within 4 days of it occurring. Not only that, but they’ll also be required to disclose how they’re protecting customer information.
SEC Chair Gary Gensler stated, “Today, cybersecurity is an emerging risk with which public issuers increasingly must contend. Investors want to know more about how issuers are managing those growing risks.” Customers and investors will be thrilled with this openly public exchange of information but many Fortune 100 companies are not.
William Hutchinson, CEO of SimSpace (a cybersecurity software company), wrote an article for Total Security Advisor that mentioned these companies “fear the regulation will incur adverse consequences on shareholder price and stakeholder demand.” And added, “When breaches leak highly sensitive information like credit card or Social Security numbers, share prices drop by an average of 22%.”
The bottom line is that no matter the size of your company, publicly traded or private, cybersecurity is a must. Small business owners, even mom-and-pops, can take steps to better protect their customers, employees, and their company data. Click HERE for suggestions from the FCC to increase cybersecurity using proper training, technology and 2-factor authentication.