The SEC’s 2023 cybersecurity rules require public companies to disclose material cyber incidents within four business days, detail risk management processes, and explain board oversight. This raises challenges in defining and communicating materiality, as qualitative ratings like high or low are inadequate. ThreatConnect advocates cyber risk quantification (CRQ), which translates cyber risks into financial terms to align CISOs, executives, and boards on investment decisions, reporting thresholds, and compliance. By adopting CRQ, organizations can improve communication, defend budgets, optimize resource allocation, and ensure defensible, transparent disclosures.

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