10-Q (SEC)
Publicly traded corporations in the United States must file a quarterly report with the U.S. Securities and Exchange Commission (SEC), known as Form 10-Q. The 10-Q offers investors a more frequent update on the company's financial performance and activities, even though it is less detailed than the annual 10-K report. The 10-Q can be used in risk management, cybersecurity, and security in the following ways:
Limited Direct Role in Cybersecurity:
Unlike the recent changes to the 10-K, the 10-Q currently does not have a mandated section dedicated to cybersecurity. Companies are not obligated to disclose specific details about their cybersecurity posture or recent incidents in the 10-Q.
Indirect Indicators and Risk Management:
However, the 10-Q can still offer some indirect insights that can be valuable for security and risk management:
Financial Performance: A significant cybersecurity incident could impact a company's economic performance. By analyzing trends in the 10-Q, security professionals may identify unexpected fluctuations that could warrant further investigation.
Legal Disclosures: The 10-Q may include disclosures about legal proceedings related to cybersecurity incidents, such as data breaches or lawsuits. This information can be used to assess potential legal and reputational risks.
Focus on Third-Party Risk Management:
Like the 10-K, the 10-Q can provide insights into a company's approach to managing risks associated with third-party vendors and suppliers. It can be particularly relevant for:
Identifying key dependencies: The 10-Q may mention critical third-party vendors, allowing for a focus on assessing their security posture and potential vulnerabilities within the supply chain.
Monitoring for financial distress: Financial difficulties faced by a third-party vendor mentioned in a 10-Q could indicate an increased risk of security breaches or service disruptions.
Integration with Broader Risk Management:
While the 10-Q may not offer extensive cybersecurity details, the information gleaned can be integrated with a broader risk management framework. It allows for a more holistic view of potential risks and facilitates informed decision-making regarding mitigation strategies.
Example:
A company might disclose in its 10-Q that it faces a potential lawsuit related to a data breach at a third-party vendor. While this information does not explicitly mention the breach, it would be a red flag for security and risk management teams, prompting further investigation and potential reassessment of the vendor relationship.
Future Developments:
The SEC constantly reviews and updates reporting requirements. Future revisions to the 10-Q could include more specific requirements for cybersecurity disclosures, similar to those recently implemented for the 10-K.
Although it doesn't specifically address cybersecurity, security and risk management professionals might benefit from reading the SEC 10-Q. By examining financial performance, legal disclosures, and third-party dependencies listed in the 10-Q, organizations can spot possible areas of concern and take proactive measures to reduce risks.
ThreatNG, with its combined EASM, DRP, security ratings, and financial investigation capabilities, offers valuable assistance for organizations in discovering, evaluating, and managing risks associated with SEC filings, particularly the quarterly 10-Q report.
Enhanced 10-Q Discovery and Evaluation:
Continuous Monitoring: ThreatNG constantly scans publicly available sources for SEC filings mentioning your organization. It ensures you're notified of new 10-Q filings promptly.
Intelligent Parsing and Analysis: ThreatNG extracts key details from 10-Q filings. This includes identifying relevant financial data, legal disclosures (though only sometimes specific to cybersecurity), and mentions of third-party vendors.
Indirect Cybersecurity Indicators: While 10-Qs don't have a dedicated cybersecurity section, ThreatNG can analyze financial performance trends. Sudden drops in revenue or profitability could be potential indicators of a recent cyber incident, prompting further investigation.
Integration with Complementary Solutions:
Security Information and Event Management (SIEM): ThreatNG can integrate with your SIEM to correlate information extracted from the 10-Q with existing security events. It allows for a broader risk assessment by identifying potential gaps between a company's financial performance and security posture.
Governance, Risk, and Compliance (GRC): Information on potential legal disclosures (e.g., lawsuits related to data breaches) and third-party dependencies in the 10-Q can be fed into GRC platforms. It helps ensure alignment with industry best practices and helps manage potential compliance risks.
Risk Management Solutions: ThreatNG's insights from the 10-Q, 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 lawsuit implying a data breach) and likelihood (e.g., financial performance fluctuations).
Real-World Examples:
Identifying Potential Supply Chain Disruptions: ThreatNG can analyze the 10-Q to identify critical third-party vendors. If the 10-Q mentions financial difficulties for a key vendor, it might indicate an increased risk of service disruptions or security vulnerabilities within the supply chain.
Market Intelligence: Organizations can obtain critical insights into new threats and modify their security plans by examining competitors' 10-Qs for possible legal disclosures connected to cybersecurity issues.
Merger and Acquisition (M&A) Due Diligence: ThreatNG can scan the target company's 10-Qs for potential legal and financial risks associated with third-party vendors. It can inform decisions about the potential economic impact of cyber risks associated with the acquisition.
The ThreatNG Advantage:
Centralized Management: A single platform simplifies security operations and streamlines 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-Q filings and identifying potential risk indicators.
Actionable Insights: The combined EASM, DRP, Sentiment analysis, and 10-Q data provide a richer context for understanding potential cyber and financial risks.
Future Developments:
As the SEC considers expanding disclosure requirements, ThreatNG will be well-positioned to adapt and analyze any new cybersecurity-related information included in future 10-Q filings.
In conclusion, ThreatNG offers more than just fundamental 10-Q discovery. It facilitates a proactive approach to managing risks associated with potential legal issues, third-party dependencies, and indirect cybersecurity indicators revealed in these filings. ThreatNG fosters a comprehensive approach to enhancing your overall cybersecurity posture by integrating with existing security and risk management solutions.
