SEC TO FIRMS: BOOST YOUR CYBERSECURITY

THE Securities and Exchange Commission ( SEC) is urging corporations to strengthen their cybersecurity as more digital transactions occur during the coronavirus disease 2019 ( Covid- 19) pandemic.

In a statement, SEC Chairman Emilio Aquino noted that “digital transformation benefits businesses, allowing them to improve their productivity and realize greater efficiencies, but not without risks.”

In this regard, the commission advised companies to assess their cybersecurity risks exposure and craft policies, as hacking incidents were reported recently.

It also urged the boards of directors and senior management teams of these companies to ensure the effective confrontation of the cybersecurity risks they face.

They “must ensure that a robust cybersecurity strategy is in place and that existing cybersecurity measures, including regular penetration testing and risk assessments, remain effective amid the evolving security landscape,” Aquino said.

The pandemic highlighted the advantages of digital technology, as businesses shifted to low- touch and online- only services, according to the SEC.

“Cybersecurity is more than an IT ( information technology) matter. It is a corporate governance issue that companies should give serious attention to and proactively manage, as cyberattacks could damage their reputation, disrupt their operations, and eventually jeopardize their profitability and enterprise value,” Aquino said.

“The SEC has been advocating cybersecurity and data privacy in the corporate sector, integrating best practices and standards in various rules and regulations,” the commission said.