Cybersecurity Risk Factor

This risk factor template describes cybersecurity issues and potential risks, and may be included in a public company's annual and periodic reports, registration statements, and other offering documents and filings with the U.S. Securities and Exchange Commission (SEC). As the number of reported cybersecurity breaches across a variety of sectors has increased, companies have sought to include additional disclosure in their SEC filings regarding cybersecurity threats and their impact on a company's business and reputation. This template includes practical guidance, drafting notes, and optional clauses. The SEC Division of Corporation Finance issued disclosure guidance in October 2011 relating to cybersecurity risks and cyber incidents and expanded upon it in February 2018. Under the guidance rules, companies should disclose the risks of cybersecurity breaches if such risks are among the most essential factors that would make an investment in the company speculative. The guidelines ...