Securities and Exchange Commission Chair Jay Clayton warned today insider trading by executives from undisclosed hacks and weak protections can pose cybersecurity risks to the reputation of a company. Clayton’s warning came with the unveiling of new SEC cyber guidance approved by the Commission Tuesday. The Commission cautioned firms that failure to disclose cybersecurity risks or incidents adequately could put them in danger of running afoul of anti-fraud laws. Like so many of the categories of information, the SEC guidance directs companies to make public, the chief obligation in the cyber realm is information the agency believes is material. In the guidance, the agency said companies can be right to keep some cybersecurity measures secret that would provide a roadmap for hackers.

Source: Forbes February 21, 2018 21:22 UTC