This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Willis Launches Cyber Disclosure Study

Willis Group Holdings (NYSE: WSH), the global insurance broker, said today it launched a proprietary study to monitor how U.S. public companies are responding to the U.S. Securities and Exchange Commission’s (SEC) new guidance on cyber exposure disclosures.

The recent formal guidance from the SEC’s Division of Corporate Finance calls on public companies to address their exposure to cyber attacks and disclose how they will respond financially to the potential loss.

In Willis’ view, for the SEC to single out any one area of exposure for specific financial disclosure by public companies is rare, making the formal guidance that public companies provide detailed information about their potential exposure to cyber attacks a major event – and possibly a game changer for some public firms as it impacts how firms view and measure “materiality.” The SEC intended the new disclosures to help investors understand the risk/reward relationship in the enterprises in which they potentially invest. The Commission’s guidance includes a non-exclusive list of specific, detailed elements for cyber exposure disclosure both pre- and post-attack.

Willis is launching its study to coincide with the first round of financial disclosures for accelerated filers, representing roughly 750 firms, including some of the biggest U.S. companies. The study will continue through 2012 and beyond, eventually capturing information from all U.S. public companies with respect to cyber disclosure. The initiative is part of Willis’ strategy to help organizations better understand and evaluate cyber risk, while adding to a firms’ ability to understand where they sit when measured against their peers. In Willis’ view there are real risks to organizations related to cyber exposure and potentially additional risks to directors and officers with this new disclosure guidance. One goal of the Willis study is to help organizations track the emerging disclosure standards being applied.

Willis will monitor key Information and data points including:
  • How the cyber exposures of each organization are quantified in terms of the impact on the firm’s business and reputation
  • Whether new disclosures of past cyber hacking events (possibly due to a broader interpretation of materiality in the SEC’s guidance) are required
  • The role of interdependencies among clients, customers and vendors
  • The challenges and costs of remediation
  • How (and if) relevant insurance coverage is disclosed

The Willis Study will consider the variations in these initial disclosures between all filers as well as between companies in the same industry with similar corporate footprints. In addition, Willis will examine Fortune 500 companies both as a group and across industries as we consider the new disclosures in the energy, financial, health care, hospitality, manufacturing, retail, technology and transportation sectors, along with select subsectors.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 0.00%
FB $118.00 1.10%
GOOG $693.01 0.00%
TSLA $240.76 0.00%
YHOO $36.60 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs