10-K (SEC)
Publicly traded corporations in the United States must file an annual report with the U.S. Securities and Exchange Commission (SEC) on Form 10-K. This report thoroughly reviews the company's business operations, risks, and financial performance. The 10-K has the following implications for supply chain security, cybersecurity, security, and risk management in general:
Cybersecurity Disclosures:
New Requirement: Since December 15, 2023, companies must include a new cybersecurity section in their 10-K filings. This section, titled "Item 1C. Cybersecurity," details the company's:
Risk Management Strategy: How the company identifies, assesses, and mitigates cybersecurity risks.
Governance: The structure and processes in place to oversee cybersecurity practices.
Transparency and Investor Confidence:
By disclosing cybersecurity posture in the 10-K, companies provide investors with crucial information to assess potential cyberattack risks. This transparency fosters investor confidence and promotes responsible cybersecurity practices within the organization.
Third-Party Risk Management and Supply Chain Security:
The company's strategy for controlling the risks connected to working with outside suppliers and vendors can be seen in the 10-K disclosures. It comprises possible openings in the supply chain that hackers might use to access the organization's data or systems.
Risk Management Integration:
Information about cybersecurity risks and third-party dependencies disclosed in the 10-K can be integrated with broader risk management frameworks. It allows for a holistic view of the organization's risk landscape and facilitates informed decision-making regarding risk mitigation strategies.
Example:
A company might disclose in its 10-K that it experienced a data breach involving a third-party cloud service provider. This disclosure would inform investors and trigger internal reviews to strengthen the company's approach to vendor risk management and overall cybersecurity posture.
In conclusion, the SEC 10-K is vital in promoting cybersecurity awareness, transparency, and risk management within publicly traded companies. The SEC aims to enhance investor protection and encourage companies to adopt robust security practices by requiring disclosures related to cybersecurity and third-party dependencies.
ThreatNG, with its combined EASM, DRP, security ratings, and financial investigation capabilities, offers significant advantages for organizations in proactively discovering, evaluating, and managing risks associated with SEC filings, particularly the annual 10-K report.
Enhanced 10-K Discovery and Evaluation:
Continuous Monitoring: ThreatNG continuously searches databases and the Internet for SEC filings regarding your company. It ensures that you are informed about the most recent 10-K filings.
Intelligent Parsing and Analysis: ThreatNG can extract critical details from 10-K filings. It includes identifying the "Item 1C. Cybersecurity" section and extracting risk management strategies, governance practices, and potential vulnerabilities mentioned in the report.
Actionable Insights: ThreatNG goes beyond just identifying 10-Ks. It analyzes the content and compares it with your existing security posture.
Integration with Complementary Solutions:
Security Information and Event Management (SIEM): ThreatNG can integrate with your SIEM to link data taken from the 10-K with current security occurrences. Pointing out possible discrepancies between declared cybersecurity strategies and security procedures enables a more thorough risk assessment.
Governance, Risk, and Compliance (GRC): Information on cybersecurity risks and third-party dependencies identified in the 10-K can be fed into GRC platforms. It helps ensure alignment with industry best practices, regulatory cybersecurity, and supply chain security requirements.
Risk Management Solutions: ThreatNG's insights from the 10-K, combined with EASM and DRP data, can be used by risk management solutions to create a more holistic risk profile. It allows for better prioritization of risks based on potential impact (e.g., a disclosed data breach) and likelihood (e.g., vulnerabilities mentioned in the 10-K).
Real-World Examples:
Identifying Supply Chain Weaknesses: ThreatNG can analyze the 10-K to identify third-party vendors mentioned by the company. This allows for a proactive assessment of those vendors' security posture, potentially revealing vulnerabilities in your supply chain before exploiting them.
Benchmarking Cybersecurity Practices: Companies can analyze the cybersecurity strategy outlined in competitors' 10-Ks to benchmark their practices and identify areas for improvement.
Merger and Acquisition (M&A) Due Diligence: ThreatNG can scan the target company's 10-K for potential cybersecurity risks and third-party dependencies. It can inform decisions about the likely financial impact of cyber risks associated with the acquisition.
ThreatNG Advantage
Centralized Management: A single platform streamlines security operations and simplifies monitoring compared to using separate tools for EASM, DRP, and financial investigations.
Proactive Approach: ThreatNG goes beyond essential monitoring by analyzing the content of 10-K filings and identifying actionable insights.
Actionable Insights: The combined analysis of EASM, DRP, Sentiment analysis, and 10-K data provides a richer context for understanding potential cyber and financial risks.
ThreatNG empowers organizations to move beyond simply finding 10-Ks. It facilitates a proactive approach to managing risks associated with cybersecurity and third-party dependencies outlined in these filings. ThreatNG fosters a comprehensive approach to enhancing your overall cybersecurity posture by integrating with existing security and risk management solutions.
