How the SEC’s Cybersecurity Disclosure Rules Can Guide SaaS Data Protection for Mid-Size Companies

Last summer, the Security and Exchange Commission (SEC) established new standards encompassing cybersecurity risk management, strategy, governance, and incident disclosure. These regulations apply to public companies, recognizing that cybersecurity critically impacts investor confidence and market stability. But that doesn’t mean smaller organizations should ignore them. That’s because these regulations provide a sound foundation for securing software-as-a-service (SaaS) data for organizations of all sizes. 

In this post, we’ll look at the implications of these rules and offer actionable insights you can use to enhance your organization’s cybersecurity posture.

Action Steps for Cybersecurity Risk Management

The SEC rules require a greater focus on identifying SaaS data vulnerabilities. For small and mid-size enterprises (SMEs) that should be applied in these critical areas:

Conduct Comprehensive Risk Assessments

Identifying potential vulnerabilities is a never-ending task. So, you should regularly evaluate your cybersecurity risks within your systems and the SaaS platforms you use. Tools and methodologies like the National Institute of Standards and Technology (NIST) Risk Management Framework can help ensure your assessment is thorough.

Strengthen Cybersecurity Solutions

Adopt a structured approach to managing and mitigating risks, including policies on access control, data encryption, secure software development, and incident response. The NIST also offers valuable guidance here, offering its Cybersecurity Framework, which was developed specifically to help organizations better understand and improve their cybersecurity risk management.  

Implement Continuous Monitoring

Deploy continuous monitoring solutions that detect real-time threats and adjust your risk strategies continuously. There are many available solutions worth considering. These include:

• Vulnerability scanners that compare network or application states against a database of known vulnerabilities to identify potential exploits. 

• Intrusion detection systems (IDS) that continuously monitor, detect, and notify you if an intrusion occurs. Arcserve solutions feature Sophos Intercept X Advanced, offering a front-line cybersecurity defense for your backups using a deep-learning neural network to detect known and unknown malware without relying on signatures.

• Network traffic analysis solutions that monitor and inspect data packets to identify patterns, trends, and anomalies that might indicate threats or vulnerabilities.

• Endpoint detection and response (EDR) services and solutions continuously monitor all endpoints on your network, from laptops to mobile phones.

• DNS monitoring helps detect and prevent cyber attacks before they can cause significant damage.

• Antivirus software can prevent known threats and alert you regarding suspicious device activity.

Make Cybersecurity Awareness and Training a Priority

Your employees are on the front lines regarding data protection and fighting against ransomware, social engineering, and other malicious attacks. Regularly educate your people regarding security best practices and emerging threats.

Invest In Secure SaaS Backup Solutions

Solutions like Arcserve SaaS Backup protect SaaS application data from ransomware attacks. This is crucial, given that the shared responsibility model means you are responsible for recovering your data in the event of an attack. Arcserve SaaS Backup offers immutable backups using a blockchain-based algorithm, so you can be confident your backups are available—and can be recovered—following virtually any disaster.

Enhance Cybersecurity Governance

The SEC rules also cover cybersecurity governance requirements for public companies. Regardless of your company's size, you can leverage these requirements as guidelines for improving your cybersecurity governance approach.

That starts with defining roles and responsibilities so everyone understands the steps they need to take in the event of an incident. Engage your leadership team in this effort by informing them of cybersecurity risks and initiatives. Leadership buy-in is vital for ensuring you have the resources to protect your organization’s data.

Regularly review and update your cybersecurity policies to ensure you have data protections to meet existing and emerging threats and address changes in your business environment.  

Even if your organization isn’t mandated to disclose data breach details as the SEC requires, transparency is the foundation of earning and keeping the trust of your employees, partners, and customers. Establish guidelines for external and internal communications following an incident. Determine the information you will share, to whom it will be disclosed, and the communications channels used.

After any incident, conduct a thorough review to ensure continuous improvement.

See SaaS Backup in Action

Find out how simple strengthening your SaaS data protection can be. To see Arcserve SaaS Backup in action, request a demo. If you’re ready to take a test drive, check out our 30-day free trial offer.