With the SEC's latest cybersecurity incident disclosure ruling enacted, establishing new, clearly defined standards for determining material impact is crucial for staying ahead of costly threats, remaining in line with regulations, and fostering brand trust in 2024.
TEL AVIV, Israel, Nov. 13, 2023 /PRNewswire-PRWeb/ -- Kovrr, the leading global provider of on-demand cyber risk quantification (CRQ), releases a groundbreaking solution, the "Cyber Materiality Report," empowering organizations to comprehensively assess their risk exposure levels, determine materiality thresholds, and discover if they currently face material-level risks.
The Report introduces a breakthrough approach in the face of the latest SEC requirements, streamlining the process of quantifying the potential financial impact of cyber events and determining the precise criteria for fiduciary disclosures.
Yakir Golan, Kovrr CEO, warns, "Governing cybersecurity requirements are becoming increasingly stringent. Organizations need to be proactive and well-prepared to disclose material events swiftly, providing tangible metrics necessary."
The Cyber Materiality Report supplies corporations with this measurable, defensible data that equips cybersecurity leaders to confidently communicate their cyber posture and initiate discussions with legal counsel and the board of directors regarding materiality criteria.
Kovrr's Groundbreaking Approach to Materiality
Kovrr is the first cybersecurity vendor to release an automated solution that arms companies to develop unambiguous definitions of material loss and stay ahead of the most potentially damaging cyber incidents with timely, detailed disclosures.
To address this challenge, Kovrr's risk experts conducted a comprehensive analysis of corporations worldwide across various industries and concluded that the best practices for determining materiality begin with a basis point of revenue. After quantifying an organization's cyber risk, the Materiality Report identifies that point on a loss curve and highlights the likelihood of experiencing an event of that magnitude.
Bridging the Gap Between Cybersecurity and the Board
The recent uptick in cybersecurity reporting regulations demands greater collaboration between CISOs and board members who, more than ever, need to remain aligned on organizational cyber risk and mitigation plans.
The Cyber Materiality Report fosters this relationship, creating a shared understanding of the companies' material cyber risks. With this information, cyber teams and the board can work together to develop data-driven frameworks, making the organization more resilient and better prepared against looming attacks.
Rapid Cyber Insights to Save Critical Resources
With cybersecurity budgets set to tighten, it's essential for teams to optimize their resources. Kovrr's cutting-edge cyber risk models employ automated calculations to determine materiality thresholds, eliminating the need for manual data collection and analysis. Instead, organizations can invest that valuable time into threat mitigation.
Kovrr's novel Materiality Report is also designed to be accessible to executives without a statistical background, facilitating more transparent communications regarding risk prioritization and material incident response planning.
The Power of Financial Benchmarks
When discerning material risks, it's also beneficial for organizations to contextualize findings by comparing thresholds to those of similar companies. Metrics like financial loss and the likelihood of event occurrence vary by sector, offering insights into the organization's specific cyber landscape.
For instance, Kovrr's Fortune 1000 Cyber Risk Report reveals that the Oil, Gas Extraction, and Mining sector exhibits the highest probability of experiencing a material cyber event, even though the anticipated financial impacts remain relatively modest. This comparative insight supports more strategic materiality assessments.
The Key to Material Clarity in 2024
As 2024 draws nearer and the number of cyber attacks rises, establishing a clear definition of materiality is paramount for organizations, particularly those facing increased regulations.
Kovrr's one-of-a-kind Cyber Materiality Report helps companies quantify their cyber risk and foster the necessary collaboration between security teams and the boardroom to determine appropriate material loss thresholds.
This groundbreaking CRQ tool is poised to play a vital role in shaping how organizations approach cyber materiality reporting, enabling them to meet fiduciary obligations, optimize resources, and build trust by showcasing their commitment to robust cybersecurity practices.
Request Access to the Cyber Materiality Report
To learn more about the Cyber Materiality Report and incorporate it into your cyber governance program, please visit https://www.kovrr.com/sec-reporting-materiality.
Kovrr's cyber risk quantification platform empowers enterprise decision-makers to manage cyber exposure more effectively by providing an in-depth risk analysis that drives actionable, financially justified decisions. For more information, please visit www.kovrr.com or follow us on Twitter or LinkedIn.