SEC corporate finance chief says cyber incident disclosure rule is focused on helping investors understand company risks

Erik Gerding, director of the SEC’s Division of Corporation Finance, emphasized how the upcoming requirement for publicly traded companies to disclose “material” cyber incidents is focused on informing investors on risks they might face, in an appearance at the annual Aspen Cyber Summit.

Investors want to know the risks in their investments, Gerding said, which include potential losses from cyber incidents. Gerding said staff at the Securities and Exchange Commission found incidents were underreported under existing disclosure rules and “comparable”...