A recent bill proposed by the U.S. Senate states requirements for publicly traded companies to increase transparency about cybersecurity threats, risks and breaches. The bill includes disclosure standards such as having publicly owned companies reveal whether anyone on its board of directors has cybersecurity expertise or specialization. Companies would provide this information through U.S. Securities and Exchange Commission investor reports.
The bill stems from an urgency to combat cyber threats in light of investigative findings from cybersecurity practices of top 100 financial firms as well as recent attacks on major publicly traded companies like Sony and Home Depot. If the bill passes, investors and shareholders can monitor how well public companies secure private data and information, motivating companies to enhance security measures.