In the recent Global Data Review article, “SEC’s ESG Disclosure Requirements Could Tackle Cybersecurity and Privacy Next,” Ben Barnes discusses the impetus for the U.S. Securities and Exchange Commission’s recently proposed cybersecurity disclosure rules.  

As data concerns spread across more boardrooms, an agency-mandated cybersecurity disclosure would help investors, added Redgrave counsel Ben Barnes.

“I think right now a lot of the disclosures around incidents and just cyber practices within companies is very sporadic,” Barnes said. “I think investors may discount those disclosures because perhaps they will just say that company is just crying wolf, they provide tons of information in their disclosures and other companies don’t provide anything. There's less to compare these cyber practices. Having consistent requirements across the board will definitely make it a lot more [easier] for investors.”

The need for more insights regarding an investment’s data practices is not just an issue raised in consumer-facing or tech companies, Barnes noted.

“Originally it was a lot more consumer-based [companies] and [those] in the tech space or those that have specific highly sensitive data, but I think we're slowly moving toward a general consensus around that. That more and more companies are dealing with a lot of data, they are looking to show they are secure with data,” he said.

Access the Global Data Review article here.