By definition, public companies are held to a higher level of transparency than their private counterparts. Due to their accountability to the shareholders, public companies must file a quarterly financial report with the Security and Exchange Commission (SEC). Public companies must look out for the shareholder’s best interests, especially by mitigating organizational risk. Traditionally, this has meant financial risk, but in their new disclosure rules, the SEC has officially recognized the unique risks posed by inadequate cybersecurity policies.
